7 General situation and status on HK Franchise market

Transcription

1 홍콩 FC 시장개황/진출사례 7 General situation and status on HK Franchise market 전성우, Sung Woo Chun 법무법인 로고스 미국변호사 주요경력 법무법인 로고스 기업법무팀, 미국변호사 (2006) 법무법인 로고스 베트남 호치민 사무소, 미국변호사 (2007) 법무법인 로고스 베트남 하노이 사무소, 소장(2007~2010) 주베트남 한국대사관 고문변호사 (2008~2010) 코트라 하노이 무역관 고문변호사 (2010) 대한상공회의소 베트남 건설부동산 진출 세미나 강사 (2010) 법무법인 로고스 기업법무팀, 미국변호사(2010~현재)

2 General situation and status on HK Franchise market 2011 Overseas Franchise Market Forum General situation and status on HK Franchise market 20 Jan 2011 By Harry Chow, BOSSible BOSSIble Business Scope BOSSible is the first consultant to provide one-stop Business Start up services in HK. BOSSible provides one stop consulting services: - Franchise Consulting - Business Buy & Sale (M&A) - Business Start-up Consulting 113

3 2011 프랜차이즈해외진출포럼 BOSSible since 2000 The first consultant to provide one-stop franchising services in HK Franchise business model setting Franchise scheme structuring Franchise documents writing Franchisee recruitment Franchise locations planning Our Achievement Served more than 60 brands in various industries Matched franchise projects with more than 4500 local franchise investors Raised over US$15.5 million for franchise projects Established 10 master franchise contracts in Hong Kong, Mainland China and South East Asia countries 114

4 General situation and status on HK Franchise market Reasons to start franchising in HK 1. Easy to capture capital HK is a free market with a lot of liquidity Investors would easily consider to invest for a reasonable return with reasonable support and protection. 115

5 2011 프랜차이즈해외진출포럼 Example : Taiwanese Bubble Tea in HK Example : Taiwanese Bubble Tea in HK Franchise Shops 38 Shops Opened Joining Fee (Each) USD $32,000 Joining Fee collected USD $1.21 Million in 2 years Continuous Income Royalty fee : 3% of Sales Turnover Average monthly sales turnover about USD $35,000 Product wholesales earning 116

6 General situation and status on HK Franchise market Reasons to start franchising in HK 2. A show case to PRC market PRC consumers generally give extra credit to overseas brands if they have shops in Beijing, Shanghai and HONG KONG. They would consider they are real international brands Example : Freshness Burger 117

7 2011 프랜차이즈해외진출포럼 Example : Freshness Burger Started franchising since 2008 in Hong Kong No. of franchise outlets in HK from : 7 outlets Strategies applies : Found a regional franchisee to take care HK region development Started franchise in HK,and set HK as the supporting center. Shared the expenses of this supporting center with various franchise outlets Treat HK as a model of regional franchisee, and promote the concept to other PRC cities. Reasons to start franchising in HK 3. Easily outreach varieties of Investors HK is a well known international trade city. A hub for international investors for different investment purposes Attention 1: PRC manufacturers are always looking for opportunities to diversify business scope. Reason : Utilize existing resources and capital from manufacturing business Watching at the huge potential income from HK IPO, if any add on business can help increase significant turnover. 118

8 General situation and status on HK Franchise market Reasons to start franchising in HK Attention 2: Many active South East Asia countries investors and of course PRC investors keep watching HK market, and try to pick potential project if it could succeed in HK. HK market acceptance of Korean product Increasing rapidly in last 10 years Stimulations : Korean TV Drama, Korea Fashion Reasons to take Korean product : Quality secure, Trendy Korea related popular business in HK Traditional Korean Restaurant e.g Sarobol Korea Skin Care products e.g. SkinFood Korea Fashion Shop e.g. The Basic House Korea Education e.g. Enopi 119

9 2011 프랜차이즈해외진출포럼 HK TV Show about a Popular Korean Snack News Clipping about Fashion Merchadising Class A TV interview about Korea fashion 120

10 General situation and status on HK Franchise market Franchisee s TOP 5 concerns Franchisee's Top5 Concern 102% 100% 98% 96% 94% 92% 90% 88% 86% 84% 82% ROI Promotion & Ad Operation Support Manual Training & Directing Conclusion HK investors prefer a franchise project that can give faster ROI, instead of long term of profitability. 121

11 2011 프랜차이즈해외진출포럼 Franchisee s Most Demanded Capabilities that Foreign Franchisors considered Franchisee s Most Demanded Capabilities that Foreign Franchisors considered 13% 9% 8% 33% 37% Brand popularity Industry background Current Performance Management Skills Capital Ability General Information about HK Franchise Project structure Fee s Title Scale of Amount Period Joining fee USD $12,000 to USD $51,200 3 to 5 years Loyalty fee 3% to 10 % Monthly Product Depends 122

12 General situation and status on HK Franchise market Ways of Collecting Franchise Loyalties Ways of collecting franchise loyalties Fixed fee 7% 5% 5% Proportion 11% of Sales 76% Proportion of Profit 11% Proportion of Distribution Sales 7% Fixed fee Proportion of Sales Proportion of Profit 77% Proportion of Distribution Sales Common Investment Budget ( set up cost + joining fee ) Catagories Investment Budget Restaurant USD $190 to $384,000 Fast Food USD $64 to $153,000 Retail shop USD $64 to $100,

13 2011 프랜차이즈해외진출포럼 Common Set Up Cost for Hong Kong Food Restaurant (~140 Sq Meter,40seats) USD * Rental Deposit (3 Months ) 46,200 * First Month Rent and Management Fee 15,400 Fixture, Equipment and Machinery (140 Sq Meter) 257,000 * Deposit for Utility (Water, Electricity and Gas) 20,500 Point of Sales System 16,700 Franchise Fee (6 Years ) 57,800 Total Investment 413,600 Net Investment (Except Rental and Deposit *) 331,500 Common feasibility of HK franchise shops Hong Kong Food Restaurant USD Monthly Revenue 154,200 Food Cost (35%) 54,000 Rental and Management Fee 15,400 Salary 44,700 Loyalty and Administration Fee (1.5%) 2,300 Monthly Marketing Fee (1%) 1,500 Others Expenses (Water, Electricity, Logistic and Misc.) 10,800 Total Expenses in Average 128,700 Net Profit 25,500 Return of Investment (Month)

14 General situation and status on HK Franchise market Common Set Up Cost for Hot Dog Take Away Shop (~24 Sq M,NO seat) USD * Rental Deposit (3 Months ) 11,500 * First Month Rent and Management Fee 3,900 Fixture, Equipment and Machinery (24Sq. M) 19,000 * Deposit for Utility (Water, Electricity and Gas) 1,200 Franchise Fee (3 Years ) 30,000 Total Investment 65,600 Net Investment (Except Rental and Deposit *) 49,000 Common feasibility of HK franchise shops Hot Dog Shop Monthly Revenue 21,000 Food Cost (40%) 8,400 Rental and Management Fee 3,800 Salary 3,100 Loyalty Fee (Including Marketing Fee) 700 Others Expenses (Water, Electricity, Logistic and Misc.) 600 Total Expenses in Average 16,600 Net Profit 4,400 Return of Investment (Month) 11 USD 125

15 2011 프랜차이즈해외진출포럼 Common Set Up Cost for Education Centre (75Sq Meter,3classroom) * Rental Deposit (2 Months ) 7,700 First Month Rent and Management Fee 3,900 Fixture, Equipment and Machinery (75Sq. Meter) 19,900 * Deposit for Utility (Water and Electricity) 1,300 License 1,300 Franchise Fee (3 Years ) 15,400 Total Investment 49,500 Net Investment (Except Rental and Deposit *) 40,500 Common feasibility of HK franchise shops Education Centre Monthly Revenue 12,900 Rental and Management Fee 4,500 Salary (Full Time) x 1 1,300 Salary (Part Time) x 7 2,300 Teaching Materials 650 Miscellaneous 650 Total Expenses in Average 9,400 Net Profit 3,500 Return of Investment (Month)

16 General situation and status on HK Franchise market Tips to run successful franchising in HK Select small to medium operational model Control total set up cost within USD $19,000 Open 1-2 demonstration shops Highlight Korean features Smart marketing Find a right partner in HK : regional franchisee or a professional local consultant Thank You! Contact : (852) harrychow@bossible.com Website: 127