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Updated
Oct 18, 2008
The key to franchising?
Industry leaders from award-winning firms pinpoint challenges
By Elizabeth Wilmot
Proud recipients of the franchising industry's awards (from left) Mr Yuka Yeung, chief operating officer of Little Sheep; Mr Kiyoshi Ueki, CEO of Waraku; Mr Nallakaruppan from 7-Eleven; and Mr Wilson Lim, GM of V-Kool International. -- PHOTO: LIANHE ZAOBAO
IN THE fast-growing franchise industry, finding good partners and staff are the main challenges.

That applies to both franchisors with a road-tested business template to sell and franchisees who buy these business outlets as a way to becoming their own bosses.

This was the message from the winners of the Franchising and Licensing Association (FLA) Awards presentation ceremony at Swissotel The Stamford last night.

Four awards were handed out this year.

The inaugural Franchisee of the Year title was given to Mr Nallakaruppan, owner of five local 7-Eleven stores.

The Franchisor of the Year was V-Kool, which produces solar heat control films to keep cars cool.

The Promising Franchisor of the Year was won by Waraku International, which serves Japanese-style pasta and pizza.

Finally, the International Franchisor of the Year award went to the Little Sheep catering chain of Inner Mongolian hotpot restaurants.

Mr Wilson Lim, V-Kool's general manager, said: 'One of the challenges we face as a franchisor is finding good partners.'

'We need to have people on the ground to implement corporate identity and good customer practices and ensure that the brand experience enjoyed in Singapore would be the same,' he added, referring to international franchisees.

Waraku's chief executive Kiyoshi Ueki agreed, saying: 'Finding a good franchisee is not easy. You have to ensure that the franchisee you pick has sound financial and operational capabilities.

'We need enthusiastic and pro-active partners to help grow the Waraku brand. Most importantly, they must share the same values and visions as our company in order to succeed.'

Franchisees have people issues too.

'You have to find your own staff and then you have to control your stock variances. That's the biggest challenge,' Mr Nallakaruppan pointed out.

He opened his first 7-Eleven outlet at Marina Square in 2002, after more than eight years running a sari shop. The success of the branch, Singapore's highest revenue-generating 7-Eleven, led him to open four more outlets.

He employs 42 staff at these five outlets.

He said some staff were dishonest and stole from stores, forcing him to account for stock discrepancies. 'You have to be very positive about everything you do, and you have to motivate your staff,' he said.

As a result, he makes an effort to drop by his stores every day to meet his staff. 'Not a single day goes by that I don't visit my stores,' he said.

He now has many loyal and motivated staff, some of whom have worked for him for six years.

Mr Douglas Foo, the chairman of FLA Singapore, who presented the awards last night, said: 'A successful franchise is like a marriage, it takes strong commitment from both parties to make things happen.

'While franchisors must ensure that they have a robust system to continue growing the brand, franchisees must play their part too, to comply and provide continuous feedback to perfect the franchise model.'

egwilmot@sph.com.sg

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