FRANCHISE BUSINESS MANAGEMENT

ECB30303

AH CHENG LAKSA

PREPARED FOR:

PREPARED BY:

Submission Date:
21st MAY 2019
 ACKNOWLEDGEMENT
ACKNOWLEDGEMENT

Assalamualaikum Warahmatullahhiwabarakatuh..

First of all, we praise to Allah for giving us the opportunity to complete this
business plan although we have to face a lot of challenges and obstacles during
completing this business plan. We also like to thanks each others because we put a
lot of effort, sacrifice our energy beside good cooperation on this project.

Other than that, we want to give an appreciation to our lecturer Dr Baharu for
the guidance since the first day of this project been given to us. Without him, we may
be unable to complete this project. Moreover, we with full appreciation and special
thanks to our family, close friends for supporting us and give motivations to our project.

Last but not least, we want to thank to a few others who have contributed their
ideas and comments, we thank you very much and our best wishes to you all.
 TABLE OF CONTENTS
TABLE OF CONTENTS

ACKNOWLEDGEMENT

TABLE OF CONTENT

1 EXECUTIVE SUMMARY

2 FOUNDER PROFIT

3 TEAM

4 BUSINESS TYPES & PRODUCTS

5 OPERATION PROCESS

6 MARKETING

7 FINANCIAL STATEMENT PERFORMANCE

8 BUDGETING

9 CONCLUSION
APPENDICES

PARTNERSHIP AGREEMENT
 EXECUTIVE SUMMARY
EXECUTIVE SUMMARY

Entrepreneurship is a process innovation which contain four dimension includes

individuals, organization, environment and institution. To develop a new business,
there are some steps for entrepreneur to understand.

There are only one person which hold the important position in this company.
The important person who take the responsible of all the business process is Mr
Edmund Goh. His first experience as a the owner of Ah Cheng Laksa started when he
had face failure when he try a small business using food truck and being partner with
his close friends after studied but end up he saw that his friends not giving a good
cooperation to the business that why he closed the business and find other solution to
be an entrepreneur. Then he started new business borrowing the capital from his
sister.

But there still have the position that he provide in this company to make sure
that all the process are went well which are General Manager, Administration
Manager, Operation Manager, Marketing Manager and Financial Manager to make
sure that Ah Cheng Laksa business process going smooth.

Ah Cheng Laksa has its origin since year 1960 in a small town in Alor Setar,
Kedah. A unique family recipe loved by the locals till today, it was brought into the
Klang Valley in 2004 in the form of a chain shop by one of the family members. Today,
Ah Cheng Laksa has expanded into 10 outlets in the Klang Valley with a couple more
in the pipeline. The special about Ah Cheng Laksa was the originality as their secret
to the popularity of this exortic Asam Laksa. Ingredients are sourced from the North to
ensure that consistency and quality are maintained at all the time.

Ah Cheng Laksa has provided training, growth prospects, yearly increment and
bonus base on employees performance. Other than that, they also provide in term of
addition likes service incentive, medical claim, annual leave, medical leave, EPF,
SOCSO and uniform also provided for new entry workers.
 FOUNDER PROFIT
FOUNDER PROFIT

Entrepreneurship is a process innovation which contain four dimension includes

individuals, organization, environment and institution. To develop a new business,
there are some steps for entrepreneur to understand.

Ah Cheng Laksa is a own subsidiaries company. The business capital is

amounted RM 50,000.00 where the first capital he borrow from his sister. For him it is
easy as a new comers to start a new business with a safe financial record. That why
he decide to borrow from relatives to try build the new brand name in small scale. After
he saw the business growth than he dare to enlarge his business empire by opening
up opportunities for the franchisee to gain a profit by carrying his brand name.

His dream is to offer customers who like ‘Asam Laksa’ to enjoy the original
flavor of laksa from the rich ingredients and originally from state of the country. He
also focuses on this business in Klang Valley where it is quite difficult for customers
who are around here to find and feel the real taste of ‘Asam Laksa’.

And until now he glad because the business that he running almost for 6 years
are already well known among their regular customers and still counting to achieve
more in future while he also have other products beside Ah Cheng Laksa to be
promoted soon.
 TEAM

Team
Manager: Mr. Edmund Goh
Assistant manager: Ms. Winnie
Supervisor: ten of supervisor at each outlet of Ah Cheng Laksa
Manpower: 130 of staff that currently works at each outlet of Ah Cheng Laksa

Mr Edmund
Goh

Ms Evelynn

10 of
130 of staff
Supervisor
 BUSINESS TYPES & PRODUCTS
Business types:

Business type that have been run by Mr. Edmund Goh is franchise in food and beverages
since 2003. Ah Cheng Laksa its origin since 1960 from Alor Setar Kedah. Now, Ah Cheng
Laksa expanded to 30 store across Malaysia. Franchise is a relationship between franchisor
and franchisee in doing business, franchisee need to get license from franchisor to open the
business in order allow them to sell the product but must follow the rule and regulation such
as do not the change the logo, trademark, recipe if regarding with food and beverages and
slogan. Ah Cheng Laksa also one of the famous local franchise in Malaysia. According to Mr
Edmund Goh if the franchisee have desire to open the franchiser of Ah Cheng Laksa they
must be under training in Ah Cheng Laksa first and starting up for open the franchise is RM50k
which is Ah Cheng Laksa will provide everything from the kitchen until the interior design of
the store. Before Ah Cheng Laksa allow franchisee to open the franchise, the franchisee must
select which mall that they want to open the store. Then, Mr Edmund Goh will decide is it the
mall is it good for sale within 2 years of opening this is because Mr Edmund Goh worry if
franchisee open at mall that don’t have popularity it will decrease their sale. Ah Cheng Laksa
only open their franchise in mall only because they want to suitable with the price of their
dishes with the place of the store.

Products:

The signature menu in Ah Cheng is Asam Laksa and follow by pan mee and curry laksa which is
everyone favourite.
Besides, they also have nasi lemak rending, curry chicken, herbal chicken soup, keropok lekor and ais
kacang with the affordable price. Ah Cheng laksa purpose is they want to serve customer with delicious
food so that it will be word of mouth to customer tell their family members about the taste of them.
Ah Cheng Laksa believe if they provide good quality in serve the customer they no need for a big
marketing because if customer satisfy with the taste of the meal they will tell others and repurchase
of their product.

Menu of Ah Cheng Laksa

 OPERATION PROCESS
Operation Process

Operation unit is one of the most important parts in the business organization because the
through the operations of its product it will lead to a business growth. From this operation of
Business Company, Ah Cheng Laksa also can maximizing the profit gain.

All activities in this operation will be done according to plan so that it will meet with their
customer’s expectation. In this term foods, Ah Cheng Laksa are ensuring that the production
will be produced such a good foods continuously to fulfil the increasing demand from public.
This operation states the information about the cost of product, salaries of workers, operation
flow chart, operation hours, operation budget and list of suppliers for raw materials and
machines.

Operation Planning

With the application of high technology, the business can produce a large scale of production
by which the production cost will also be reduced and the product will be more competitive as
compare to other product. Besides having similar Asam Laksa with others competitor, Ah
Cheng also had improved and put additional ingredient to their product to make it as an
alternative way to solve the people problem especially for people want to taste Asam Laksa
from north and to those that miss their hometown Laksa will definitely fall in love with Asam
Laksa. In addition, Ah Cheng Laksa ensure all individual involved in the operation process had
good relations among themselves. This will avoid any purposely mistake done by some
workers. They always ensure that their workers to be a responsible, honest and motivated
person when doing their work and make sure all staff are well training to serve customer. They
also hire the best operation manager with high operation skills to ensure that our products are
produced in high quality and they provide the operation manager supervisor with basic and
advance training to improve the efficiency of production skills that they had.
Location

The choice of location is important because it will affect sales revenue, business operation
cost and long term investment. Ah Cheng Laksa operations at shopping mall in Klang Valley.

Labour supply

The location that has been chosen is shopping mall. This gives advantages for their franchise
to get labour supply which is an unskilled worker. The workers also can get experienced from
training provided by Ah Cheng laksa. New workers must be training at store at least 7 days
before them officially permanent. From kitchen until the front counter workers must follow the
standard operation procedure (SOP) by Ah Cheng Laksa and be systematic during works.
Block Diagram of Ah Cheng Asam Laksa

Guest arrival

Reservation

Check available
YES PROCEED tables

Confirm

Take guest to Introduce menu to Waiter takes

tables customers order

Serves the dishes

Customer pay the bills

END

Table 1: Process of Flow Chart

Process

all the raw material process are happen at Ah Cheng Laksa’s factory in order to maintain the
unique taste of asam laksa and others menu they manage all raw materials manufactured to
maintain the originality the taste. After the stock have been arrived at all outlet of Ah Cheng
Laksa, the workers only need to reheat the gravy, slice the vegetable such as cucumber,
pineapple, salad and more according to standard operation procedure (SOP), the way they
slice the vegetable, the vegetable need to be soak in salt water and wash it. After that noodles
also workers only need to boil first. All the menu in Ah Cheng already made at manufacture
so that workers only follow the rule how to do it.

Production Schedule

Business hours refer to the time the business is open to the customers. Operation hours refer
to the hours the workers have to work. For manufacturing, usually the business will operate
on 8-hours per shift. Thus, the entrepreneur will only decide whether the business will runs for
one shift or more. This will depends upon the planning for production. In Ah Cheng Laksa
business have been operated in shopping mall that usually will operated for 12-hours everyday
so that they need to follow the rule and regulation of the shopping mall during their operation
hours at each outlet, they decide to operate our business on 12-hours per day. Their business
operation need to operate with two shift which is morning shift and noon shift.

The business and operation hours

The business and operation hours in our operation business are as follow:

DAY SHIFT
(MONDAY TO SUNDAY) 12.00 pm - 1.00 pm ( Rest Hour for morning shift)
5.00pm – 6.00pm (Rest Hour for noon shift)
10.00 am – 10.00pm
MARKETING
FINANCIAL STATEMENT
PERFORMANCE
BUDGETING
CONCLUSION