What is the first step to obtain an OLDTOWN™ White Coffee License?
Each party involved is to submit an application form. Upon receipt of the application, parties will be given a Business Plan template to fill out. Qualified parties will be notified and invited to an OLDTOWN White Coffee Business Meeting at our Office located in Subang Jaya, Selangor, Malaysia to begin the process.
The minimum financial requirements for consideration as a Master Licensee are a nett worth of at least USD 5 Million and liquidity ( cash or cash equivalents ) of at least USD 2.5 Million.
What is the initial Master License Fee and what does it include?
Upon confirmation, the Master Licensee is to make an upfront payment – the initial Master License Fee of between USD 100,000 – USD 250,000. This includes the rights to use the Trade Name, Trade Mark and systems of OLDTOWN WHITE COFFEE in the pre-agreed territory. Initial training is also provided (excluding any out-of-pocket expenses incurred).
What is the term for the Master License Agreement and what is the procedure for renewal?
The term is for a period of 5 years with a conditional option to renew for another 5 years. Renewal License Fee is payable at 20% of the initial Master License Fee.
What are the Continuing Fees?
The Master Licensee will need to allocate 5% of their Total Gross Monthly Sales towards a Royalty Payment and 1% of their Total Gross Monthly Sales Turnover to be put towards Market Development Contribution. In addition to this, for every outlet opened under the Master Licensee, a one-off License Fee of USD 20,000 will be charged per shop.
What are the other Fees involved?
The quantum for the Security Deposit Fee is based on territory and expected opening.
What is the estimated fit-out costs for an OLDTOWN White Coffee outlet?
The set up cost varies and it depends on location and other factors. The estimated set up cost depends on store size and local conditions but can be between USD 250,000 to USD 400,000. The total cost will include: all equipment, entire store fit out, and security deposit.
Do I need to choose a location before submitting my application?
Yes, you will need to propose the location of where you intend to operate the OLDTOWN White Coffee Licensed Outlet. The Management will evaluate the location based on:
a) Address b) Size c) Rental per Month d) Date of Availability
What considerations and size specifications are required for an OLDTOWN White Coffee Location?
For shop lots, the considerations will be “Corner Lots”, with a minimum build up of 2,500 square feet. For commercial buildings the minimum build up will be 1,000 square feet.
What kind of training does OLDTOWN White Coffee provide?
Master Licensee and their team must attend and successfully complete the OLDTOWN White Coffee unique Business Operations Management Training Program.
What kind of continuing operations support will the Licensee receive?
Besides the Operation Manuals and other materials, our OLDTOWN White Coffee Operation Executives will visit each licensed outlet regularly to render on-site assistance besides helping you to set up your first outlet. In addition we will provide you with on-going training, guidance and support to ensure your business remains competitive.
Do I need to be involved in day-to-day outlet operations?
One of the partners/shareholders has to be appointed as the Managing Principal of the licensed business. The Managing Principal is required to undergo the full initial license training and to spend a reasonable amount of time to oversee the overall aspects of the OLDTOWN White Coffee licensed business. However, competent outlet managers and staff can be hired to manage the daily operations of the licensed business.
Are we looking for international partners and venturing overseas?
Yes! We are aggressively seeking international partners who are keen to take up the Master License for their respective country or territory so as to expand our licensing business throughout Asia Pacific and the World.
The countries which we have earmarked for now are Thailand, Vietnam, Philippines, Hong Kong, Macau, China, India, Saudi Arabia, and Australia.