Top 10 most profitable business franchising sectors in Vietnam

What is business franchising?

First of all, we need to understand what the concept of coffee business franchising is. It's a form of commercial operation where the brand franchisor allows the franchisee to conduct business, sell goods based on an existing brand. This can take place for a certain period of time or indefinitely. Accordingly, the two parties will be bound to each other based on financial, management, and store operation aspects.

During the process of business franchising, the franchisor is obliged to provide accurate, complete and support members in the same system.

On the other hand, the franchisee must ensure that they follow the standards and patterns of the system. In particular, the franchisee is entitled to exploit the brand, logo, products, secrets, business documents...of the franchisor.

 Advantages and disadvantages of business franchising models

Many people are always wondering whether or not to franchise. In particular, the question of whether or not to franchise coffee business is of interest to many people. To find a solution to the above question, let's follow the advantages and disadvantages of this business model with Monaco Coffee.

Advantages

Franchised brands have been established in the market

To implement brand franchising, most brands have been known by many people and have a large loyal customer base. Therefore, when granted the right, you will reduce the risk of cost and time to build a completely new brand. From there, franchising activities become valuable.

Owning a product system assures quality

All franchised stores are strictly supervised for quality by the parent brand. All factors from raw materials, processing recipes, management processes, marketing, ... will be carried out uniformly. Therefore, the products to customers will always ensure the highest quality, bearing the standard of the parent brand.

Franchise store owners will be supported to the maximum

An advantage of business franchising is that you will be supported to the maximum by the company setup cafes, decorating, marketing, advertising, promotions, marketing, ... Therefore, your business operations will become easier in operation and management.

Disadvantages

Any business method will have weaknesses. A person needs to exploit the limitations to find a business solution that suits their needs.

In brand franchising, there will be competition among stores in the system. When the brand has many branches, there certainly will be many business competitors.

In addition, if the franchisor has a bad reputation, your store will certainly be negatively affected.

Therefore, you need to carefully consider choosing a franchisor. And to understand more, let's move to the next part - common franchising models.

Common Franchise Business Models

Comprehensive Brand Franchising Model – Full Business Format Franchise

Among the brand franchising business models, the comprehensive business model is the most tightly structured and complete. It is a model that is divided according to the level of cooperation and commitment between the franchisor and franchisee.

Accordingly, the franchisor will have to transfer the 4 necessary components as follows:

• Business system including strategies, operating procedures, management policies, training, grand opening support, marketing and advertising,...
• Secrets, machinery, production and processing equipment,...
• Trademark franchising of logos and images,...
• Products and services.

In the full franchise business model, the franchisee is obliged to pay the brand two basic fees: the initial franchise fee and the operating cost.

In addition, depending on the needs and agreement between the two parties, you may have to pay extra for some items such as: designing, decorating, setting up the shop,...

Non-Comprehensive Franchise Model – Non-Business Format Franchise

The non-comprehensive franchise model is when the brand only transfers certain best elements such as products, formulas, marketing and the right to use the brand's images.

This usually means the franchisor has less strict control over the franchisee’s operations and revenue.

Participatory Management Franchise Business – Management Franchise

This franchise business model not only transfers the rights to use the brand, formulas and business secrets but also provides a manager to run the business.

Thanks to the thoroughly trained staff provided, this form will bring certain benefits to you. In particular, it helps you optimize costs as well as time and effort.

Equity Franchise with Capital Investment – Equity Franchise

This model allows the franchisor to directly participate in management and control systems. In this, the franchisor must make a small investment.

In this way, the franchisor can participate more deeply in the business operations of its partner.

Top 5 Most Profitable Franchise Sectors in Vietnam

Food and Beverage Sector

In the past, franchising in the food and beverage sector was reserved for big names like KFC, Lotteria, MC Donald's... Today, franchising has become much more lively. Notably, Vietnamese renowned brands such as Highland Coffee, Red Sun, Golden Gate have made their appearance.

Coffee Sector

Currently, the fastest way to become successful is through coffee franchising.

For Vietnamese, coffee is a beverage and a habit. The familiar sight of people sitting beside a cup of coffee each morning is very common. Not only that, the younger generation also loves the moments of chatting and confiding with friends while enjoying a cup of coffee.

This shows that the market and customers in this sector are vast. Choosing coffee franchising as your business model will undoubtedly bring you the opportunity to earn high profits.

Depending on your financial size, you can choose some coffee business franchising brands from high-end to popular. Some brands for your reference could be: Highland Coffee, The Coffee House, Monaco Coffee,...

If you want to franchise with less capital, the coffee sector is worth your choice.

Retail Sector

The retail sector is more suitable when operating in big cities. Currently, the retail market is diverse and provides many opportunities for investors. Some notable international brands are Big C, Circle K, Family Mart,... or Vietnamese brands such as Saigon Coop, Winmart,...

Education and Training Sector

In Vietnam, the education and training sector is always attractive and draws investors. The demand for learning languages and skills is increasingly high, which stimulates franchising activities.

In the educational franchising field, some well-known brands like Anh Nguyen Viet Uc, Anh ngu Khong Gian, Ms Hoa Toeic, Anh ngu I Can Read,... always lead in quality as well as in business effectiveness.

Pharmacy Franchise

Franchising a chain of pharmacies is becoming very popular. This is one of the business sectors that bring high profits.

However, the conditions for franchising pharmacies are quite high. You are required to have all relevant papers and certificates.

Currently, there are many famous pharmaceutical franchises such as: Pharmacity, Phano Pharmacy, Chau Long, Medicare,…

 What to prepare when participating in franchising?

Capital for Franchising Business in Vietnam

Generally, the cost you have to pay when joining a franchising business is less than starting your own brand. Moreover, whether the cost is high or low depends on the brand you want to join.

Typically, you need to prepare certain costs such as:

• Franchise fee.
• Rent and shop decoration cost.
• Cost of buying raw materials and necessary equipment for the shop.
  Staff hiring cost.
• And some other contingency expenses.

Understanding the Franchise Brand Information

There are many factors you will need to consider when researching a franchise brand.

Answer the following questions:

• Is the brand you want to join for franchising currently performing well in the market?
• Are their products/services popular and profitable among customers?

Simultaneously, you should also visit the brand’s stores directly to explore and get a feel. Only then can you decide whether to franchise or not.

Business Location

Choosing a business location is a very important factor. Usually, the brand owner will offer comprehensive advice on the location because it not only affects your revenue but also directly impacts the brand's image.

Monaco Coffee – Vietnam's No.1 Trusted Franchising Brand

Monaco Coffee was established from the idea of ​​serving 100% pure coffee, ground and brewed on-site, in neat and clean shops suitable for all customers.

After more than 6 years of establishment, Monaco Coffee has always been the top choice for those wishing to start a business in the coffee franchising sector.
Currently, Monaco Coffee is present in over 25 provinces/cities with nearly 400 stores.
Popular franchising models at Monaco include:

• Store model
• Kiosk model
• Takeaway model

Especially, Monaco Coffee is offering bonuses in franchise fees, annual fees, and management fees of 0 VND. If you are interested in learning about franchising models at Monaco Coffee, please contact via the hotline 0905 426 656, or click here.

Above is some information about coffee franchise business and some notes when participating in this form. With the top 5 franchise business sectors that Monaco Coffee has provided, hopefully, you can choose a suitable model. Please follow Monaco Coffee here to learn more useful information.