Waroeng SS
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Ant Eko AndriyantoWaroeng SS
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Ant Eko AndriyantoCommon questions
Didukung oleh AIEnsuring long-term profitability of a franchise location involves several considerations: managing lease agreements to control costs over time, planning for regular refurbishments or relocations as necessary to maintain customer appeal, and consistently evaluating market trends to adapt the business model. Financially, maintaining a reserve fund to manage unexpected expenses or market downturns is crucial. Effective cash flow management to balance income and expenditures over fiscal periods ensures both operational smoothness and strategic reinvestment in growth opportunities .
Waroeng Spesial Sambal maintains quality and operational consistency through a management model where all key areas, including human resources, operational & general management, production management, and financial management, are entirely controlled by Waroeng SS's management team. This ensures that all franchises adhere to established standards. Moreover, the system ensures active involvement of the franchise management in important decisions and real-time adjustments .
Ownership stakes significantly influence the decision-making process because, within the Waroeng Spesial Sambal framework, management retains a majority ownership (55%), consequently holding primary control over business decisions. This structure limits the investor's influence, making them passive stakeholders where operational decisions and strategic directions are aligned with management's goals and policies rather than individual investors' interests. This centralized decision-making ensures uniformity and adherence to established operating procedures .
Potential investors providing their property for a Waroeng Spesial Sambal franchise must meet several criteria: they must own (not rent) the property, which should have a minimum size of 300 square meters and include necessary facilities like parking for cars and motorcycles, as well as employee accommodations. The submission of the property must be pre-approved, and Waroeng SS management retains full rights to survey the location .
Cash flow management is deemed critical because it directly affects the operational viability and success of a franchise business. Effective management ensures that despite potentially high turnover, the business remains profitable. It emphasizes that profitability, not just revenue, is crucial, and ongoing management can help sustain operations during lower revenue periods, manage expenses, and invest in growth. Good cash flow management prevents liquidity issues and helps in strategic planning .
Prospective entrepreneurs should consider factors such as the royalty fees involved, the nature of the business location (ownership vs. rental), the amount of initial capital needed, and the expected cash flow management. These elements determine not only the startup costs but also the potential for profitability and sustainability of the franchise operations. It's essential to understand long-term commitments and evaluate whether the business model fits the entrepreneur's goals and financial resources .
Foreign franchises typically implement stricter operational standards to protect their brand reputation, which often leads to higher royalty fees but ensures consistent quality and service. This demands greater compliance from franchisees, who may face higher operational costs but benefit from robust systems. Domestic franchises may have looser standards but can offer more flexibility and potentially lower costs. For potential franchisees, choosing between them involves weighing factors like initial investment, operational control, and potential returns against regulatory demands and brand support .
Advantages for investors in Waroeng Spesial Sambal include gaining up to a 45% ownership share with a structured profit-sharing model, receiving operational reports, and investing in a managed entity that ensures operational consistency. However, disadvantages may include limited decision-making power as the management controls all key aspects, potential restrictions due to fixed operational policies, and risks associated with location and market dependency. Investors must weigh the high investment against their reduced control and potentially slower returns due to the franchise structure .
The reserved fund, which is 10% of the net profit, serves as a crucial component of the financial strategy for sustainability at Waroeng Spesial Sambal. It helps in mitigating financial risks associated with challenges like rising building lease costs, facilitating renovations, and enabling relocation if necessary. This prudent approach ensures the franchise can handle unforeseen financial challenges, thereby supporting long-term business sustainability .
The financial obligations for an investor in the Waroeng Spesial Sambal franchise include an investment amount ranging from 300 million to 500 million, adjusted based on the real value of the restaurant's pre-opening. This investment gives the investor a maximum ownership share of 45%, while the remaining 55% is held by the management of Waroeng SS. Profits are calculated as net profit (revenue minus all costs) minus a reserve fund of 10%, with the remaining 90% distributed as profit sharing. Investors receive 45% of this distributable profit. Profit sharing distributions occur every six months, with monthly operational income and loss reports sent via email .
