BUSINESS PROPOSAL TO SECURE LOAN FROM
PERBADANAN NASIONAL BERHAD (PNS) UNDER
FRANCHISE LOAN PROGRAM
December 10, 2007
TAPCES ESSENTIAL (M) SDN. BHD.
Confidentiality Disclosure Statement
This document contains confidential material proprietary to TAPCES ESSENTIAL
SDN BHD. The material, ideas, and concepts contained herein are to be used
exclusively to evaluate the capabilities of TAPCES ESSENTIAL SDN BHD to secure
loan from PERBADANAN NASIONAL BERHAD. This information and the ideas herein
may not be disclosed to anyone outside an employee of PERBADANAN NASIONAL
BERHAD, or be used for purposes other than the evaluation of TAPCES ESSENTIAL
SDN BHD capabilities, without the prior written consent of TAPCES ESSENTIAL SDN
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1. Introduction 1.1 Franchisee’s Background
1.2 Our Mission
1.3 Franchisor’s Background
1.4 Franchise System
1.5 Franchise Benefits
2. Start Up Summary 2.1 Premise
2.3 Project Milestone and Timeline
3. Market Analysis Summary 3.1 Market Segmentation
3.2 Market Analysis
3.3 Target Market Segment Strategy
3.4 Market Trends
3.5 Main Competitors
4. Strategy and Implementation Strategy 4.1 Marketing Strategy
4.2 Organizational Structure
4.3 Director’s Background
5. Projection Financial Statement
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This business plan was created to secure loan from financial institution. Tapces Essential Sdn Bhd
(TESB), plans to operate an outlet of Laksa Shack Franchise, at Tesco Extra , Selayang. Laksa Shack ‘The
Laksa Specialist’ is a franchisor in the business café serving Malaysian delicacies, specializing in Laksa.
With a variety of Laksa and other Malaysian delicacies, Laksa Shack have proven to be a favorite with
Malaysians regardless of race and age.
There are two main reasons that Laksa Shack will succeed in Selayang; first is the lack of direct
competition (nothing like it in town) and second is the high demand for a product like this in Selayang.
Located about 5 Kilometers from Kuala Lumpur, Selayang is a well planed residential and commercial
area with a big potential for future developments. Based on the existing Tesco Extra outlets, the
occupancy rate at has been good and tenants are filling the mall up with a traffic of about 14,000 visitors
daily. We forecast to capture 2% of the visitors as our market share.
Government, private sectors employees, residents and students are our main target market. This is due
to the fact that Selayang is surrounded by offices, houses, and higher learning institutions. We also wish
to capitalize from the nearby office complexes whose workers frequently come for lunch break, which is
expected to contribute much to our sales volume.
With RM100,000 as our initial capital, we anticipate about RM500,000 will be needed to start the business
operation which will include the renovation and furnishing costs and other fixed assets required to run
the outlet. We also expect to record profit in our business, even in the first year of operation. A steady
and continuous increment is expected in our sales and profit recorded.
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Name : Tapces Essential (M) Sdn Bhd (TESB)
Registration no. : 750466-H
Address :31C Pusat Bandar Taman Desa, Jalan Desa Bakti Taman Desa, 58100 Kuala Lumpur
Phone & Fax no. : 03 - 79806529
Date of Incorporation :October 13 2006
Authorized Capital :RM 100,000
Paid Up Capital :RM 100,000
Type of Business : Franchise Restaurant
Bank Account : MBB 564128340817
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To promote authentic home cooked delights without
jeopardizing the originality and quality of the products.
Provide a great work environment and treat employees
with dignity and respect.
Embrace diversity as an essential component in the
way that we do business.
Apply the highest standards of excellence to the food
production, preparation, and service to customer.
Build lasting relationships with the guests.
Contribute positively to communities and our
Recognize that profitability is essential to our future
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Name of Franchisor Sierra Circle Sdn Bhd
Company No 403009-T
State whether Franchisor is the Master Franchisee Franchisor
Date of Incorporation of Franchisor September 21, 1996
Principle Business Address of Franchisor Lot 2D, Jalan SS5D/6
47301 Petaling Jaya
Selangor Darul Ehsan
Tel: 603-7880 2239
Fax: 603-7880 6692
Name and Trademark of Franchisor Laksa Shack
“The Laksa Specialist”
Type of Business of Franchisor Business Café serving Malaysian delicacies, specialty noodles
Business of franchisees, where the franchisor has Not applicable
been in operation prior to 8 October 1999 (list of
franchisees’ names and addresses both in and out
Business experience of franchisor:- 10 years in the business since 1996
-in the business being franchised Not applicable
-in other businesses
Date of offer from franchisor to sell franchise Immediately after approval from Kementerian Pembangunan
Usahawan dan Koperasi
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The franchise system is a comprehensive and distinctive system utilising and comprising of
quality recipes for noodles preparation and other local food of a wide variety and origin and
emphasizing prompt and courteous service attractive to patrons and customers and adhering
to standard policies, specifications, techniques, selected ingredients and materials and
insignia, logos and management methods with operational procedures and with prescribed
and quality and services established by the franchisor.
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• Group advertising & marketing power
• Owning your own business and making day-to-day decisions yourself, guided by the
• The ability to sell products and services to markets that cannot be serviced by company-
owned outlets because of higher operational costs
• The benefit of identification of service marks, brand awareness, trademarks, proprietary
information, patents, and designs
• Systematic training from experts
• A lower risk of failure and/or loss of investments that if you were to start your own
business from scratch
• Being part of a uniform operations, which means all franchises will share the same interior
and exterior physical appearance, similar products, and the same service and product
• Assistance in financial and accounting matters from the franchisor, as well as ongoing
• The enhancement of your management abilities and benefits from an opportunity you
could not have in most employment situations
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Strengths - The support and benefits provided by a Franchise system greatly reduce a Franchisee's business
- The Franchisee has the incentive of owning their own business with the additional benefit of
continuing assistance from the franchisor.
- The Franchisee benefits from operating under the name and reputation (brand image) of the
franchisor, which is already well established in the mind and eye of the public.
- The Franchisor helps the Franchisee obtain occupation rights to the trading location, comply with
planning (zoning) laws, prepare plans for layouts, shop fitting and refurbishment, and provide
general assistance in calculating the correct level and mix of stock for the opening launch of the
- The Franchisor trains the Franchisee (and very often, the Franchisee's staff as well) in all areas of
the business such as; manufacture, preparation, accounting, business controls, marketing,
promotion and merchandising
Weaknesses - Soaring royalty fees. Every sales has a set percentage that goes to franchisor, no matter the expense
- Limited independence. Most franchisors impose price, appearance and design standards on
franchisees, limiting the ways you can operate the franchise.
- High startup costs. Before opening franchise, franchisee is required to pay a nonrefundable initial
franchise fee, which can cost thousand of dollars
- Higher material costs. To preserve quality standards, goods and materials to be bought strictly from
franchisor. The charges might be more than the market price.
- Lack of new product development for franchisees since there are restrictions on the sales of goods
and services by franchisor.
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Opportunities - The Franchisor may negotiate better rates of finance, or more favorable conditions, for Franchisees
with financial institutions
- The Franchisee receives the benefit on a national scale (if appropriate) of the Franchisors advertising
and promotional activities at a lower cost than if they were to attempt such marketing themselves
- The Franchisee has access to use of the Franchisor's patents, trade marks, copyrights, trade secrets, and
any secret processes or formulae
- The Franchisee has the benefit of the Franchisor's continuous research and development programs,
which are designed to improve the business and keep it up-to-date and competitive
- The Franchisor provides a knowledge base developed from their own experience, as well as that of all
the Franchisees in the system, which would otherwise be impossible for a non-franchised business to
Threats - Increase in price of necessity goods like oil, flour and chicken. People will spend less on outside food.
- Price is higher compare to similar product in the market. People might turn to substitutes such as laksa
at food court since the price is cheaper.
- Lack of legal recourse. As a franchisee, there is little legal recourse that can be taken if you are
wronged by the franchisor
- Laksa Shack is new in market. The advertisement is very limited compare to other establish franchises
like McDonalds, KFC and Kenny Rogers.
- Inflated pricing on supplies. The franchisor can designate supplies of goods and services. Franchisor
argues that this is done to maintain quality control, but almost all franchisors receive kickbacks from
the vendors. By not allowing shopping around and subsequently limiting competition, franchisees are
forced to pay higher prices on supplies
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START UP SUMMARY
Ciara Circle Sdn Bhd, owners of the Laksa Shack chain, has
estimated overall start-up costs between RM450, 000 to
RM550, 000. The numbers in the start-up cost table at the
financial section are meant to reflect these estimates. The
allocation into each category may not be exact, but the
approximate costs have been estimated slightly higher.
Overestimated costs will leave room for miscalculations, so
that funding will be available and will ensure that everything
runs smoothly. Please refer projection financial statement.
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Location: Lot F3, Tesco Extra
Selayang, 1081, Jalan Ipoh,
Mukim Batu, 51200 Kuala Lumpur.
Premise’s size : 1149 square feet
Why Tesco Extra Selayang: The concept behind Tesco Extra Selayang is simple: your shopping experience
will be a memorable affair, right in the heart of selayang Commercial Center. Be it shopping, food, leisure, there's
more than just great design and landscape; it's a shopper's destination providing endless shopping madness, fun
and mouth-watering range of treats. Tesco brands are comparable in quality of perhaps better-known market
leaders, yet they boast of innovative, value-added features that enhances the quality of life. All product categories
are represented by the Tesco Brand, from daily necessities such as cheese and pasta, to cosmetics and clothing.
This lifestyle shopping mall has a variety of shops, restaurants and food court. The centre also features Malaysia's
first travelator within a shopping complex that will connect retail outlets and provice access directly to car parks.
Another feature is its unique two level design that allows even distribution and smooth flow of shopppers within its
well-spaced premises. Tesco Extra Selayang has 300,000 sq ft of retail space, with a dedicated car park buildings
with approximately 3,000 carpark bays.
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PROJECT MILESTONES AND TIMELINE
OCT NOV DEC JAN
Week Week Week Week Week Week Week Week Week Week Week Week Week
2 3 4 1 2 3 4 1 2 3 4 1 2
Finalize agreement & fee
discussion Stage 3
It is assumed that F.I. will provide loan approval within five (5) working weeks.
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Market Analysis Summary
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Name : Selayang
It is strategically located along the high-traffic Jalan Kuching,
thus ensuring good visibility and business opportunity. At a mere
5km away from the busy city of Kuala Lumpur, its accessibility
guarantees a thriving business in a prominent landmark.
Direct access to major highways such as NKVE, KESAS, LDP and
MRRII draws the crowd to Tesco Selayang from as near as the
densely populated Ulu Klang, Gombak, Kepong, Batu Caves and
Selayang areas, to as far as Petaling Jaya and Rawang.
The population of 500,000 within the 15km radius creates an oasis
of market potential for a booming business.
Commercial Components :
Over the years, Selayang has matured into a community well-
provided with amenities. The township has numerous schools,
colleges, a hospital, places of worship, and vibrant commercial
Modern Transport and Telecommunications Systems :
• Inter-city Transport System with three entry and exit points. The city has high-speed road and rail linkages to rest
of the country
• Intra-city Transport System consisting of komuters, buses and private vehicles
• Broad Bandwidth Global Multimedia Communication Links
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Market Analysis (Pie)
Government Servants : Currently there are Majlis Perbandaran
Selayang, Gombak District Office Complex
Private Sector : About 12 commercial building within 1km
radius of Tesco Xtra Selayang
Students : There are three, College Community Selayang,
College Cosmopoint, College Metropolitan
Residents : Consists of government servants and private
sector workers who stays at Selayang
Using basic demographic characteristics of age, gender, income, location, food preferences, ethnicity, an
estimate of 100,000 potential customers was used in developing this plan. (refer appendix of places at Selayang)
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Target Market Segment Strategy
The target market for the quick casual dining industry is very broad and should
incorporate most demographic regions. Almost all ages, genders, races and
incomes should be considered potential customers.
In Tesco Extra Selayang there are no high-quality, quick casual Malaysian dining
restaurants. Laksa Shack food will be 100% fresh prepared in front of our
customers’ eyes. The competitive advantage that Laksa Shack has is the
varieties of laksa offered which will allow customers to choose their laksa to their
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Jom Bali Cafe : It is located besides of proposed Laksa Shack outlet. Even though the
environment is more cozy, The price for their food is higher thus giving Laksa Shack the
advantage in offering customers more value for money. Since Laksa Shack is a non smoking
outlet, the atmosphere will be much cleaner and more comfortable. The food will be prepared
in front of the customer, with no lard, canned food or shredded meats. Although the prices at
Laksa Shack is cheaper, the final products is definitely better.
Chicken Rice Shop : This is probably the most popular quick Malaysian delicacies restaurant
at Tesco. Using canned foods and some lard products, this restaurant provides a far-from-
fresh feeling. Again, they would be no comparison in quality of food. Though they will probably
continue to attract the traditional style Malaysian food consumer. Menu prices will be very
similar, though the final products will not be.
Food Court :
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Strategy and Implementation Summary
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Advertising costs can overwhelm a new business, so keeping marketing simple and creative will be
challenging. Cost effective marketing is one of our keys to success, and fortunately a large portion of
it will be taken care of by the franchisor.
In the world of retail and franchise marketing, the rule is to be different. Laksa Shack’s business
philosophy is built upon this and hence the company is constantly assessing its growth strategies
and reviewing future plans aimed to extend the business reach and revenue. Among these are
innovative concepts such as:
Laksa Shack Delivery Service
Laksa Shack Retail Market
Laksa Shack Catering Services
Dietary Laksa Market
F&B HR Industry Training
Laksa Shack’s Vending Machine
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ORGANIZATIONAL STRUCTURE OF TESB
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All the Directors in TESB, will also be managing the proposed outlet on a full-time basis.
•Elmi Johar will hold the position of Finance Manager, responsible for the financial department of the outlet and
keeping track of every sales and purchases transacted. The finance manager will also be responsible for keeping
the outlet’s accounting and financial well-being
•Azwin Bin Ishak – Diploma in Accountancy (UiTM), Covering the marketing and operation side of the business. As
the Business Development Manager, he will also be responsible in negotiations and public relations of TESB. He
has the record of accomplishment for meeting timeliness and adherence to structured approach and methodology.
He has exceptional communication skills, able to bridge company and clients interests. He also has strong
analytical and presentation abilities, with excellent problem solving skill. Prior in joining TESB, he is working with Al-
Rajhi Bank as a home financing executive.
HP No. : 016-2081400
Address: 40 Jalan 14 Tmn Nirwana 68000 Ampang Selangor
Next of kin : Noor Azfinah Bt. Ishak (Sister) 019 - 6601655
•Rafiq Muizz, the Operation Manager will be responsible for the daily operation of the outlet run by TESB. His main
responsibility is to ensure smooth operation and customer satisfaction with the food and service provided.
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