a door is about to close

we received an email yesterday from our lessor that they need the space of our laundry shop for their new office. translation, we need to vacate the place.

this came as a surprise for us. more so, it saddened me. gosh, i was so down yesterday.

this was our very first laundry shop. this was the reason why we were able to set up two more laundry shops and even the failed food cart business. we've invested money and time on it. this was our guinea pig.

actually, for the past months, it has been having problems. low sales caused by the vacancy of the apartments surrounding the shop. the huge lot where a lot of apartments sits has been bought and up to now, it remains vacant. we have also failed to visit the shop regularly and wasn't able to manage it. we have plans to improve the sales. we agreed to manage it more despite our different priorities. and then... we receive the news...

i would want to believe the saying that if a door closes, another door will open. i was thinking that this might be a bllessing in disguise or the change that we've been waiting to start anew. the thing is, it would cost us not only sales but loss of customers. we are given a month to vacate and we haven't found a new place yet. we are hoping to find a place within that long road since its a commercial area. it is also not that easy to move since we also have to inform our customers, we need to release the unclaimed laundry, and if ever we find a new place, we need to renovate it (install gas and water pipes, exhaust, etc). we also need to report this to BIR and city hall. we are requesting from our lessor that they give us more time since the move is not that easy as looking for a residential unit and that this month will be quite busy for everybody else due to the holiday season.   

major decisions need to be made and needs action immediately. and i hope that window will open soon.

Lord, i'll leave for you to solve this...

franchise learnings

after just about three months in operation, we decided to finally close our food cart franchise business :'( we lost money, and staff but i am sure we did learn. we felt bad of course. the staff that we had to let go were really trustworthy and hardworking people. they did not want to go back to our laundry business. and we can't hold them right? they too need a job. and so they did look for other employers.

we also tried to look for a different location where we can place our food cart. the thing is, we can't afford yet the 3 months advance and 2 months deposit. also, we still have issues with our franchisor and the product itself that we want to put it to rest first.

so what did we learn from this food cart business?

1) it doesn't mean that if you like the product -- like in our case, corn -- a lot of people will like it too.

2) don't be in a hurry.

3) take seriously the things such as: market research, product study,  background check, company profiling, etc.

4) don't believe everything you see online or what you read. like in our case, MFB claims that they were awarder as the 2009 Best Filipino Foodcart Franchise Provider. base from our experience we now question their credibility. awards like this could be bought. i don't want to be mean, but our experience with them was really really that bad! we have a contract with them for 3 years. if that matters to them, or if WE the franchisor meant anything to them, they will wonder why we stopped operating right? we havent heard from them since the beginning. we do the follow ups even the repair of the cart (which was reported first day upon delivery), the signed and notarized contract, the orders, the defective items that they delivered, the poor quality of corn cobs, etc. if they are the BEST PROVIDER, how come we experience these? anyway, ill write a blog about them one of these days. one last thing, if they are the BEST, then where are the other franchisors? there is no COMMENT or TESTIMONIALS in their webpage.

5) consider all other costs such as taxes, permits, franchise fee (if any), profit share (if any), sanitation training (required for food business), other items not included in the package like the 12% VAT (MFB did not mention in their training that all items we get from them are not yet VAT inclusive), provision of fire extinguisher, garbage bags, tupperware, water, ice, and so on. little things but when summed up, will cost a lot.
6) if possible, get in touch with those people who have the same franchise and get feedback.

 

7) when getting a franchise, get the one with a name. it may not be as big as McDonald's or Jollibee, but there are other companies who could really give quality products AND service; who will be true to their word when they say that they will give support.

 

8) it pays to pay extra.  

 

9) to open a franchise, one should have enough money for unforseen circumstances.

 

10) pray. expect the worst and hope for the best.

 

business relationship

we recently got a food cart franchise and placed it in a grocery. so far, sales is ok. our concern for the moment is our franchisee. it's been less than a month and yet, our relationship with the franchisee is starting to weaken. i am not liking it. i, along with my sisters and mom, invested on it. it might not be big for others, but for people like us who struggled to find the funds, this is something we are watching real close.

we've set up a meeting with them to discuss things and i hope, from there, we will continue to have a good relationship. we want to do the right thing. it's healthy for the business to have a good working relationship. they help us, we help them, then both parties will earn, right? right! keep you posted...