RONA IS NOT JUST A FRANCHISE BUSINESS

By FRANCHISOR DEVELOPMENT DIVISION

Rozaiman Che Kar, Managing Director of Ria Two Sdn Bhd (Ria Two), never expected that Rona, a nickname during his school-going days, would one day become a growing brand name. Rona is the brand name of a stationery and office equipment franchise business that offers a one stop business solution concept. He started business in 2001 with a paid up capital of RM890,000. He confessed that the decision to go into franchising was not done in haste. “In 2006, a friend suggested that his existing business be transformed into a franchise business. It was an attractive idea at first. The franchise business has long established itself in Malaysia but a franchise based on stationery and office equipment is something new. This is a big challenge. I took 6 months to study and understand the franchising business. I wanted it to be a well- thought plan before making my decision to go into franchising,” he said. Since starting business in 2001, Rozaiman has established a good reputation among stationery wholesalers and manufacturers. Thus when he received the franchise license in 2006, the transition from a stationery business to franchise business was quite simple. His decision to switch to a franchisor was proven to be a correct one. “To be a franchisor I have to hold the wholesaler status. From the outset, I ensure that I get the trust and confidence from the manufacturers. It is not easy to open an account with them. I was prepared to pay more just to get the goods direct from the factory. Now I have accounts with several reputable stationery manufacturers.” At the early stage of franchise business Rozaiman is thankful to Perbadanan Nasional Berhad (PNS) for their Domestic Franchise Development Program (PPFT) grant worth RM100,000. In fact he was so determined to see his franchise company grow in strength that he put in RM 40,000 of his own money to assist in the branding. He believed the work quality and product branding are the strengths in any franchise company. According to him the franchisees are the backbones to the success of franchisors. Thus the selection of franchisees also need close scrutiny. “Franchisees are different from distributors. They bring the image and brand name of Rona to the local community. Until June 2010, we have four franchisees based in Kuantan, Ampang, Shah Alam dan Putrajaya. Even though we target 8 new franchisees a year and 50 franchisees up to 2012, we want potential franchisees of real quality,” he said. Among the characteristics being looked at are possessing adequate capital, aggressiveness, having deep interest and high entrepreneurship qualities. Unfortunately according to Rozaiman, many budding franchisees misunderstand the real meaning of a franchise business. They think that when they become a franchisee, all promoting and marketing affairs will be done by the franchisor. That is wrong. They are actually only buying the concept and business system prepared by the franchisor. This does not mean the franchisor will spoon-feed all franchise information to the franchisees. Franchisees have to work hard just like other entrepreneurs,” he stressed. Rozaiman believes the rise and fall of any franchise business relies on the acquisition of expertise in managing the franchise business. In fact, he feels that franchisors and franchisees need to continuously meet and discuss. “To me, any business cartel or retail business needs strategies to attract customers. It requires skill to plan strategies in managing the cash flow, warehouse and logistics. If you cannot give a high level of commitment and focus do not choose this line of business. I choose franchisees that have the desire to succeed and those who not only want to buy a Rona Franchise Package but also want to be my business partners,” he explained. To anyone who is interested to join the Rona Franchise Business, 2 model packages are being prepared which are, RM250,000 to RM400,000 and RM180,000 to RM300,000 packages. In fact for any Bumiputera franchisee who wants to begin and expand their franchise business, a Franchisee Financing Scheme is provided by PNS with loans ranging from RM20, 000 to RM500,000.