Starting a business is something that many people dream of. Owning your own business means having full control over where your business will go. For some people who do not have experience starting a business from "zero", of course, this will be more likely to pose a lot of risks. As an alternative to these conditions, of course, BFI friends have heard of the term franchise business, right? Yes, a franchise business is an alternative for business people who don't want to start their business from "zero". The business capital owner (Franchisee) only needs to buy the franchise business ownership rights to the franchise owner (Franchisor), then the business can run.
Before deciding to do business using the franchise method, it would be nice for BFI friends to know the true definition, advantages, and disadvantages of doing franchise business. In addition, we present 10 recommendations for FnB (Food and Beverage) franchise businesses that can inspire you. Is there one that is a BFI friend's business dream? Let's see together!
Definition of Franchise Business
A franchise business is a special right of an individual or company in a business system of a commercial nature related to the marketing of goods and/or services that have been proven successful and can be utilized by others. The owner of the business capital (Franchisee) can use the rights and licenses owned by the franchise owner (Franchisor) when it has purchased the selling value. The owner of the capital will get facilities according to the franchise package that has been selected. The more complete the facilities obtained, the greater the selling value of the franchise will be.
Advantages and Disadvantages of Franchise Business
Advantages of Choosing a Franchise Business
- The Brand is already Popular and Known by Many People: Customers already know the trademark before, so franchise buyers do not need to spend a budget for branding in the future.
- A Neat Business and Company Management System: Franchise buyers no longer need to build a management system from scratch, such as making standard rules/SOPs, bookkeeping, monitoring employee productivity, and including the readiness of supporting equipment and business locations.
- Established Inter-Party Cooperation: The franchisor will provide support both from the provision of raw materials, relations to marketing and advertising, packaging, to Human Resources. In addition, the scope of networking for franchise buyers will certainly be wider.
- Opportunity to Get Profits Faster: Because a franchise business already has a good management and exposure system, the opportunity to get a return on investment and get a profit is achieved more quickly.
Disadvantages of Choosing a Franchise Business
- Limited Control Space and Creativity: Because the management system has been determined by the franchise business owner so that the franchisee is less able to explore ideas that would be able to develop the business he is running. If possible, any ideas and input should be further discussed between the two parties.
- Influenced by Market Trends: Market trends greatly affect the ups and downs of franchise business income. For example, in the past, the Jamur Crispy franchise was very popular, but 5 years later its position has been replaced by the popularity of Ayam Geprek. The purchasing power and tastes of the community will determine the sustainability of this franchise business.
- Reputational Risk: The existence of a franchise business location is not only centered in one area but can be spread over several areas with different ownership. Thus, maintaining a franchise business reputation in their respective regions is very important for the sustainability of other franchise businesses that are still under one management.
- Profit-Sharing System: Some franchises still apply a profit-sharing system for franchise owners and buyers. Thus, the franchisee does not get 100% of the existing profits. However, there are also franchises that apply 100% of the profits to be obtained by the franchisee.
Food and Beverage Franchise Business Idea
1. Ayam Geprek (Geprek Chicken)
Did you know, in 2017 Ayam Geprek became the most searched keyword in the Google search engine? Seeing the current conditions, Ayam Geprek is also still a prima donna in the culinary world. In addition to the delicious taste, the price of 1 package of Geprek Chicken is also quite cheap starting from IDR 10,000 only.
To be able to enjoy this Geprek Chicken franchise, you should prepare a capital of IDR 8,000,000 to IDR 20,000,000 for a medium trademark.
2. Crispy Tofu
Who would have thought that this relatively simple "Tofu" food can now be transformed into a tantalizing food business? There are various types of serving of the most popular Tofu, including Tahu Kriuk, Tahu Aci, and Tahu Walik. Enough with the addition of food flavors, the combination of the two ingredients can be a complementary food that can satisfy the tongue.
The Crispy Tofu franchise price for a medium trademark ranges from Rp. 3,000,000 to Rp. 9,000,000. For the complete package of the Crispy Tofu franchise, you will usually get a booth with a slick design, raw materials, experienced management, free design, and no royalty fees for some franchisors.
This Sundanese snack deserves to be a favorite food for the Indonesian people. The strength of the spices and the warming taste is always awaited for every mouthful. The price per portion is also pocket-friendly, making this seblak franchise business prospect quite profitable. With a cost of Rp. 3,500,000 to Rp. 7,500,000, you can already get this seblak franchise.
4. Contemporary Fried Bananas
Besides avocado, an alternative fruit that can be used as a business prospect is banana. 10 years ago, maybe bananas were only served fried in plain flour. However, currently, the recipes and presentations have a lot of variety and creativity. Starting from banana cheese nuggets, banana penyet with a sprinkling of various flavors of chocolate, and jumbo banana molen. All these recipes are also packaged in attractive packaging, making them look more eye-catching.
The franchise price for trademark banana nuggets is between IDR 5,000,000 to IDR 8,500,000. Meanwhile, for the fried banana franchise that already has a "name", it starts from IDR 19,000,000 including all equipment and management needs.
This Middle Eastern food has long been a favorite for the tongue of the Indonesian people. The Kebab franchise began to boom in the 2000s, at which time Kebab snacks were competing with the popularity of burgers and hotdogs. The aroma of smoked meat is the hallmark of this kebab dish and is very delicious when served warm.
For a kebab franchise package with a medium trademark, it starts from IDR 4,000,000 to IDR 9,000,000. Meanwhile, kebab franchise packages with large trademarks range from IDR 50,000,000 to IDR 300,000,000.
6. Hotdogs and Burgers
Talking about this food, surely BFI friends agree that Hotdogs and Burgers are food that is timeless. From the past until now, hot dogs and burgers have always been favorite foods and even mandatory for many people. The combination of chicken or beef with the smell of onions and the pleasure of chili sauce makes the hotdogs and burgers taste authentic.
The price of a medium brand hotdog and burger franchise ranges from IDR 5,000,000 to IDR 12,000,000. Meanwhile, the prices for hotdog franchises and big trademark burgers range from IDR 50,000,000 to IDR 175,000,000.
7. Korean Street Food
Here are the foods that recently hit along with the development of Korean dramas in Indonesia. There are many Korean specialties that can be your inspiration to develop your business through a franchise including Bibimbap, Kimchi, Ramyon, Rabokki, and others.
Korean Food franchise prices for medium trademarks range from IDR 4,700,000 to IDR 9,000,000. If the franchise trademark is large, the price can range from Rp. 30,000,000 to Rp. 150,000,000.
8. Toast Bread
This type of Toast food has also only recently been booming, spearheaded by one of the largest coffee retail businesses in Indonesia. Toast is a food favored by Americans and Europeans alike. Until it’s arrived in Indonesia, the taste was adjusted to the tongue of the Indonesian people by creating various flavors including rendang, sambal matah, mentai, and others.
The price for a medium trademark franchise package starts from Rp. 7,900,000 to Rp. 14,000,000. Meanwhile, the price for a large trademark franchise package is around Rp. 80,000,000.
9. Avocado Shake
Indonesia is an agricultural country where the avocado commodity is a fruit that is relatively easy to grow and harvest. From these opportunities, opening an avocado shake outlet is a promising thing. Besides being proven by its delicious taste, the avocado shake is a healthy drink.
Buying a whipped avocado franchise ranges from IDR 3,500,000 to IDR 8,000,000. With this package, franchisees have received 1 unit of the cart, business equipment, raw materials, recipes, and training.
This franchise can be said to be the most favorite among other types of businesses. Currently, the number of coffee shops that use booths or in the form of cafes is countless. However, don't make this a barrier to running this coffee drink business. Of course, every coffee shop has its own taste and uniqueness compared to other coffee shop business people.
For the price of a medium trademark coffee franchise, it can be said that the cheapest is starting from Rp. 10,000,000 by using a booth. The price for a franchise with a brand that already has a "name" ranges from Rp. 60,000,000 to Rp. 150,000,000.
Of the ten franchise business ideas above, which one do you most want to run BFI friends? Make sure to always do cost and benefit and competitor analysis so that your franchise business choice runs smoothly and gets maximum profit. If you need capital to open this franchise business, BFI Finance is ready to help make it happen. BFI Finance serves business capital loans with BPKB guarantees for cars, motorbikes, and house certificates. If your financing application requirements are complete and eligible to be financed, no more than 2 days, you can already enjoy the business capital. Visit your nearest BFI Finance branch or contact our Customer Service if you have other needs that you want to ask. Good luck with the franchise business!