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A FEASIBILITY STUDY FOR FRANCHISING CHA TIME IN MATI CITY

A Feasibility Study Presented to the Faculty and Staff of IMMACULATE HEART OF MARY ACADEMY

In Partial Fulfillment of the Requirements in PRACTICAL RESEARCH 2

ANDRES, TRECY AMOR O. CUEVAS, FEBEE KYTH M. SAMALCA, ROWENA J. OBATE, KEITH VER C. MASAUDLING, NIÑA O. REDULLA, JEFFERSON

GRADE 12- RESILIENCE

OCTOBER 2019

LIST OF CONTENTS

COVER SHEET

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TABLE OF CONTENTS

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Chapter I - Introduction

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Product or Service Technology Market Environment Competition Industry Business Model Marketing and Sales Strategy Production/Operating Requirements Management and Personnel Requirements Intellectual Property Regulations/ Environmental Issues Critical Risks Factors

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Chapter II - Review on Related Literature Theoretical Basis Related Studies Chapter III - Research Methodology Research Design The Sample Sources of Data The Instruments Data Collection Procedure Research Locale Respondents of the Study Sampling Technique Data Treatment

CHAPTER I

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INTRODUCTION On this generation, it is a fact that Millennial and Generation Z people are both fascinated with purchasing milk teas (Castro, 2019). This popular drink has conquered almost every corner of the world because of its popularity and unique taste. Thus, it is undeniable that this delicious drink had captured the hearts of the young ones’. In an article by Renz Lyndon Paguio, an Editorial Assistant of Summit Media, he stated that it is one of the available business opportunities that young entrepreneurs are considering as they see this industry as a non-stereotype kind of business as it will not quickly perish when its trend come to its end. Thus, venturing out with this business will not just boost the entrepreneurial skills of an individual but will also challenge the ideas and concepts to beat the competitors and stay on top. The craze of milk teas also made some coffeehouses add milk tea drinks in their menu, which certifies the promotion occurring in the metro. Before milk tea turned into a general beverage, it used to be considered as a sumptuous drink that only wealthy individuals can buy. In any case, because of the challenge in the market, the cost of the milk tea has turned out to be reasonable. Presently, individuals drink it only like coffee. Whenever of the day, regardless of whether it might be promptly toward the beginning of the day or late during the evening, individuals hunger for it (Mindanao Times, 2019).

Since “Boba Milk Tea” is one of the most profitable industries such as Gong-Cha, Chatime, Serenitea and others (Paguio, 2019). As of the moment, Chatime has one of the silver crowns with regards to selling famous bubble teas. In its latest information on its

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official page, chatimetx.com, it is now conquering 80 cities in not less than 90 countries across the four continents around the globe. It is trendy in the Australian-regions, Asia Pacific and North American-regions and even expanded its new territory in Dubai, Middle East. Chatime tea brand is bringing an “all-out healthy on the go” concept of health and superb Taiwanese tea brand. Thus, they offer several products ranging from a unique variety of milk teas and fresh fruit teas. Practicing a very standardized and new innovative professional process – Chatime guarantees its customers their highest quality of products. In the stated info of chatimecafe.com, the Philippines has welcomed Chatime as one of the famous sellers of bubble tea since the year 2005 and up until it reached the archipelagic territory of the Philippines. Since then, Chatime made its way to almost every well-known city in the Philippines including Metro Manila, Metro Cebu, Davao, and other popular provinces in the said country and gained the 2nd spot for best-selling milk tea (Munchpunch, 2014). It is an undeniable fact that milk tea has reached its peak here in the Philippines, sporting its health benefits and unique and innovative taste, color and packaging - it truly captured the hearts of every young one’, especially the people of the Millennial and Generation Z group. Thus, with all the strategized entry and flavour of milk tea - it did reach the endpoint of the southern part of Mindanao, the very alluring Mati City. Given its unique taste and health benefits, the community of Mati City will surely love the new classic taste of tea. What is franchising?

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Being a franchise is one in every one of the proper choices for entrepreneurs, particularly for people who have not any previous business expertise in the slightest degree. For a little business, franchising means that having the independence of possession with a big business network in back. Therefore, the foremost vital advantage of shopping for a franchise has less risk on business failure thanks to the franchisor has been tried out its business construct within the market already. With their recognized name will facilitate franchisee omit market testing. Also, the value of looking for a franchise might but establish their own business attributable to all franchisees acting along additional shopping power to discount the value. Moreover, the franchisor provides the coaching and power in operation business model. Therefore franchisees will avoid several unessential barriers and acquire instant access to the market. The most crucial disadvantage of shopping for a franchise is rigid rules. The formal agreement dictates the particular manner that franchisee ought to operate the business. With no making, rooms will create it tough for a franchise to retort to new competition or market. The restriction of buying is another issue. The franchise is out to buy the materials from not approved suppliers, and even they will get less expensive the same things from the native market. The name may be a bond within the whole system, which implies that franchisees might suffer from dangerous performances by alternative franchisees, albeit there is no fault of their own. More, the continued sharing profit with the franchisor is additionally a matter for purchasing a franchise, as times blow over, franchisees might not be pleasant to pay if they are doing not would like that much service from the franchisor (Which franchise 2018).

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Franchising is a prominent technique for individuals to begin a business, particularly for individuals who wish to work in an exceptionally aggressive industry like the cheap food industry. A franchise is a joint endeavor between a franchisor and a franchisee. It is a kind of permit that a gathering (franchisee) gets to enable them to approach a business' (franchisor) restrictive learning, procedures, and trademarks to enable the gathering to sell an item or give help under the business' name. In return for picking up the establishment, the franchisee more often than not pays the franchisor an underlying beginning up and yearly authorizing expenses (Hayes,2019).

Product or Service

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Image 1. Chatime’s Products

Chatime serves high quality, fresh, and tasty milk tea to their customers. The entity sells its goods at affordable prices and concern with the health benefits that people can get from their products. It is the main reason why Chatime is still operating from being the established year 2005 and has many competitors in the industry. Chatime offers a variety of drinks, these are the following:

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Milk teas Pearl milk tea is the best-selling drink, which is one of the sweet milk teas that Chatime offers. It is always served hot and has no sugar. Its components are black tea, a romantic tea leaves, best from Taiwan Sun Moon Lake as well as what they call QQ, the pearl that comes from coconut jelly. Lastly, the milk powder which contains the nutrients of the whole milk from the concentrated form.

Smoothies Chatime also offers Smoothies. They always make sure that the fruit they use is fresh, to offer the best smoothie that their customers will ever taste. They can choose a different variety of Chatime offers.

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Mousse Chatime offers mousses as well. Jasmine green tea, matcha, and wintermelon mousses are the choices customers can choose. They have a top layer of milk on the drink to add flavour.

Fruit tea Fruit tea is also one of Chatime offers. These drinks are made naturally from fresh fruits and tea, of course. In cold temperatures, these drinks will serve.

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Coffee Chatime also offers coffee, made from highquality coffee beans. This beverage can be served hot or cold based on their customer’s choice.

Latte Chatime is also known because of their latte. It is not like the typical lattes because it is Chatime signature ingredient, which is tea. Matcha Latte is one of the best sellers in Chatime.

Table 1. Chatime Product Listing and Description They have their well-trained team to serve the best that Chatime can offer. Indeed, Chatime gives its customers additional options to choose to satisfy their cravings for milk teas. Customers also enjoy the privilege of customizing their drinks according to their likings in terms of ice options, sugar levels, and choice for toppings.

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Image 2. Chatime Product Mix and Pricing As for Chatime’s product packaging, It uses a plastic cup as a container for their drinks. It has a plastic seal that has its logo, which helps to avoid spilling the milk teas from the cup and a fat straw. They also have a "halal" logo to inform the non-pork eaters or drinkers that it is safe to drink.

Illustration 1. Chatime Product Packaging

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Technology Chatime has its strength of using superior technology that helps them to produce and sell their products quickly. Chatime wants to stay competitive, so they buy technologies that would make their business have progressed in their way in producing different products of milk teas. It also makes their customers feel comfortable and satisfied with the products sold. With the help of this technology, Chatimes service would be better to the heart of those milk tea lovers.

Digital Menu Board is an object usually found in food environments, restaurants, fast foods, coffee shops, and other service businesses. These are an electronic way of displaying menus that helps to ease the way of showing to the customers the products or goods that a particular business served. Chatime has its own Digital Menu Board in every branch they have. It shows those different kinds of milk teas they offered or what is available or not.

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Computers are technologies usually used in inventory tracking systems. It helps a business to easily track an item or product, wherein those computers were updated from

time

to

time.

Chatime

uses

computers to aid accounting, tracking, and billing of the products they sold, it also used as a security system of the business. Computers are not suitable only for billing; it can also be a security system within the use of CCTV cameras.

CCTV - (Closed-circuit television) is a TV system that monitors the happenings in a particular area of the business. It serves as a surveillance and security purposes. It transmits the signal to a specific place. It would help the management to navigate the happenings inside the store or business area.

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Air Conditioner is a machine that treats the air in a defined and usually used in the enclosed area. It helps to have a pleasant and comfortable area, especially for food businesses. This machine may lead to having a productive trade of customers. Making a food business air-conditioned would be strength to the business itself because people nowadays are longing for an air-conditioned area that would help them be at ease.

Electric Milk Tea drink shaker are used to produce complete milk tea products that help to shake or mix all the ingredients that are used in making milk teas. Chatime uses this kind of machine to make their products. This machine is one of the needs in making or producing milk teas. With

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the use of electric milk tea drink shakers, the production of their products would be at ease.

Cup Sealing Machine is a machine commonly used for those products like drinks, and many more. It is mainly used to seal cups of products or any small plastic containers. This machine can be set at automatic or in manual mode. Chatime uses their cup sealing machine with the use of the own logo of their business.

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Tea Brewer is commonly called a tea maker. It is instrumental for milk tea businesses to produce their products. This device helps to make the making of milk teas at ease and fast. It is also one of the machines that milk tea businesses use to produce a delicious and tasteful product.

Pearl Making Machine this machine is designed to make or form tapioca pearls. Tapioca pearls are one of the ingredients in making milk teas. This pearl making machine helps to make tapioca pearls in the easiest and fastest way. The machine itself produces one of the ingredients used in making milk tea products that help the business to be more sweet and tasty.

Table 2. Chatime Tools and Equipment in Milk Tea production

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Intended Market Environment Milk tea is also known for it gives benefits to our body. It may serve as an antioxidant that reduces the signs of aging. It can reduce stress because it is a relaxing refreshment, especially on the off chance that is mix with a non-energized tea. Tea of assorted types is known to kickstart the digestion, which can help in weight reduction endeavors and many more that encourages the people to purchase them. The target consumers of Chatime are those who belonged to families who categorize in the middle class. These people earn ₱142,975 to ₱594,317 annually. Considering Mati is being classified into the fifth class city, which has a 141,142 population, with an average income of approximately ₱6,000 monthly income DOLE mandated.Even though the average income does not classify directly to the middle-class but there are still a lot of middle-class families which is likely a significant opportunity for Chatime to put up a business, to earn a profit, and to operate in the long run. And a lot of Millennials and youths who belonged to Generation Z that would buy milk teas to follow what is the trend. The examination discovered the more significant part of Chatime's clients between the ages of 18 to 22, which is 25 out of 50 people. Other than that, the second most elevated scope of Chatime clients' age is underneath the 18, which is 14 out of 50 people. The objective market of Chatime is most likely the school-age understudies and postgraduate people. They are, for the most part from the urban regions and care about patterns and appreciating a great way of life. 18

Also, in their packaging they have a halal logo, which means it has no pork component on it and it is safe for all to drink. Even the muslim ones can enjoy it. And the products that chatime is offering is not limited to the Matinians only. But also the tourists that are experiencing Mati. Competition In terms of competitors, there are two direct competitors here in the Mati City premises the Besh Tea and Fat Tea. They sell burgers and other snack foods besides milk tea. Their store is located at the Mati City’s Baywalk Paseo and currently occupying the former Angel’s Burger store the other one - Fat Tea is located near the Polytechnic College. It is not an exclusive and ventilated area since it is only a typical-take out store; thus, the place is not that comfortable to hangout. Its shares of income commonly come from those consumers who usually patronize their burgers and snack food rather than their milk teas. Other than the said competitors, there are no other competitors located in Mati City. There are several critical barriers in entering the premises of Mati City, first is maintaining the growth and investments of the infrastructure, innovation in technologies and hiring professional individuals that mostly have experience with regards to the job description they are hiring. Chatime offers not only a comfortable place to hang out with but also a variety of affordable snacks and milk teas that will surely hook the taste of every generation. Furthermore, they have an attractive and unique concept of a store that not only gives a cozy environment but also serves a refreshing variety of products. 19

It will be difficult and also challenging for every competitor to copy the concept and the products of Chatime because they will need to upgrade their technologies to compete with the products Chatime offers. It might affect the sales of other competitors, especially with regards to their products since they serve milk teas and might also upgrade their products. The competitors cannot also imitate what Chatime offers because it needs a significant sum of money for innovation and the sales of the competitors are not that high to sustain high maintenance of technologies for innovation or to copy Chatime’s signature products to generate higher income. INDUSTRY

Image 2. Chatime SM Lanang Davao City Chatime is one amongst the food industries within the world. Chatime origin was in Taiwan in October 2005. It is a nicely be aware of franchise company around the world. It has expanded over 800 retail stores within the earth like Asian nations, China, India, Australia, Singapore, Hong Kong, Thailand, Korea, and others. The mix thirty years of 20

tea-producing info within the industrial tea enterprise and over 700 nicely experienced trainers, it helps Chatime to return to be one all told the stated tea companies inside the globe. As a well-known tea company within the world, Chatime is aimed to be the foremost celebrated food is revolutionizing the tea trade. To provide the very best quality of food Chatime produces progressive tea machines to modernize the traditional tea culture.

Meanwhile, Chatime uses the best quality natural ingredients to supply the original quality product and with no preservatives and additives. With the age of technological advancement, all of the processes are done by machine. The primary outcome of Chatime is bubble tea (Chatime, 2013). Chatime has become the market leader as leading the bubble tea industry in the world. It has sales of 100 million pesos in the business and expanding more than 580 stores worldwide. According to the survey, the net sale of Chatime is increasing every year. In the other way, it means that the demand for bubble tea in Chatime is also growing. Determinants of Demand There are some others to determinants of demand.

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Figure 1: is a demand curve and it shows the demand for bubble tea is shifts to the leftward Price of related goods The price of related goods is a determinant of demand. When the price of bubble tea increases, consumers might shift to purchase others drink to replace the bubble tea. Consumers may buy the coffee as a substitute for the bubble tea. Therefore, the demand curve will shift to the leftward because the demand for bubble tea decreases. However, one of the critical factors which affect the demand for bubble tea is pearl. The demand for bubble tea will decrease due to the supply of pearl is decreasing. Thus, the demand curve will shift automatically to the left.

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Figure 2: is a demand curve and it shows the demand for bubble tea is shifts to the rightward

Preferences Besides, preferences are also one of the determinants will influence the demand. The goal markets of bubble tea are all exceptional ages' people. Not every person likes to drink the identical type of bubble tea. Chatime offers specific various series of bubble tea, it permits and helps to goal specific buyers and exclusive style such as smoothie series, clean juice and so on (Chatime, 2014). It helps to add to the consumers’ choice as well as attracting extra clients to consume. Besides, Chatime has also provided a transport service for the buyers to make them more comfortable and beautify to the diploma of consumers’ delight (Yin, 2015). Therefore, the demand curve will shift to the rightward.

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Determinants of Supply There are also a few of the other determinants in supply.

Figure 3: is a supply curve and it shows the supply of bubble tea is shifts to the rightward. Elastic Demand Bubble tea is associate degree elastic demand thanks to it is not necessary to everyone, and there square measure several handy replacement drinks of bubble tea. Consumers are not crucial to purchase bubble tea, and they can also pick alternative merchandise such as coffee and cola. There are a few kinds of elasticity. Bubble tea is an elastic demand because when the charge of bubble tea is decreasing, the extent sold of the bubble tea will increase, total income will increase as well. Cross Elasticity of Demand

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Figure 4: shows the price of sugar rises, the demand curve will shift from Do to D2. However, when the price of Cola declines, the demand curve will shift from D0 to D1.

In the move elasticity of demand, when the price of sugar increases, the need for bubble tea will decrease. Therefore the demand will shift to the left due to the sugar is the complement of the bubble tea. It will be a negative cross elasticity. However, the demand for bubble tea will increase when the charge of Cola is rising. Cola is one of the competitors of bubble tea, and Cola is an alternative merchandise of bubble tea. The demand curve will shift to the rightward, and it will be the incredible cross elasticity (Chatime, 2014). Income Elasticity of Demand

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Figure 5: shows demand for the normal good rise from Q to Q1, demand for an inferior good falls from Q to Q3 (Microeconomics, 2014). The change in the volume of demand is responding to an exchange of income. The type of bubble tea depends on the stage of income. For some medium level income of people, bubble tea will grow to be inferior items when the income is increasing. This is because the price of bubble tea is affordable for them when their earnings are increasing. Since they have more cash can spend, consumers will buy some luxury manufacturers of drinks such as Starbucks. For some decrease income person, the bubble tea will turn out to be normal items when their income is increasing. The rate of bubble tea is no longer high so buyers will be more affordable. As a result, the demand for bubble tea will enlarge when the earnings of decrease profits character is increasing. However, the demand for bubble tea will limit when people are getting richer (Chatime, 2014).

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Business Model Chatime is a franchise that originated in Zhubei, Hsinchu County, Taiwan 14 years ago. The franchise became a global brand, expanding to over 1200 locations worldwide. It is also known as a ₱1,046,910,000 business with 800+ stores worldwide and is the #1 Market Leaders in the International Bubble Milk Tea Industry. It is one of the Top 5

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Bubble Milk Tea brands in Taiwan, number 2 in the Philippines and is still growing fast. Chatime delivers high-quality drinks in a very customizable order.

Marketing and Sales Strategies Product Attribute Chatime provides only high quality, handmade, and healthy beverages where all teas are brewed in patience involving the three principles: temperature, humidity, and

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time. Only the best-imported tea leaves are used, including additives and preservatives (Chatime Malaysia, 2014). A higher price of the beverage helps to communicate that Chatime's beverage is of high quality. In order for the franchise to maintain its highest quality of drinks, Chatime has a standardized tea making process where tea and coffee machines are used that only require simple operation steps. They also offer a variety of snack food that comes out with a new variation of drinks.

Advertising Brands Internationally With the extensive globalization, especially in this generation, brand advertising is currently carried on in the whole world which crosses different countries, nations, and cultural barriers. These cultural differences are a barrier to communication. When a client from a different culture who speak different language/s, have different cultural beliefs, the use of different gestures and symbols to communicate, their cultural differences might become a barrier to the advertising success. Organizations are usually attracted to standardizing the brand advertising strategy across the whole world due to the possible cost-cutting and command over the brand image. However, communicating with various cultures may seem very challenging.

Advertisers ought to be sensitive to the culture of the target market, like the uses of gestures and behavior of the specific targeted audience. Gestures, as an example, created a circle with thumb and finger and the alternative three fingers up mean "OK" in most of the country. However, it suggests that cash in Japan. Behavior, as an example, in

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China, gift-giving contributes to a big part of their relationship-building culture. However, it is uncommon in western countries within the context of business relationships. One vital call that a corporation has got to build is to what extent they need to localize its complete advertising throughout the globe. Chatime effectively used traditional and digital marketing tools in order to target consumers. Chatime integrates digital as well as traditional marketing through their social media platforms such as Facebook and Instagram. On social media, they update people by posting new information about their drinks, competitions, and promotions, whereas in-store. They have traditional posters and sample drinks to draw in customers. Chatime's IMC (Integrated Marketing Communications) plan allows them to successfully send the same message across all their social platforms, as well as in-stores, such as the poster advertisements.

PRODUCTION/OPERATING REQUIREMENTS Production

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The business establishment of ChaTime in Mati City will be situated at the MDI building, ground floor where the business spaces are still vacant. The month to month lease is ₱15,000, and the area is accessible to everyone since it is situated at the center of the City of Mati. ChaTime offers franchisees many years of retail experience and board information. As a ChaTime franchise, one needs to be business-driven, a positive thinker aiming for success, and the ability to take risks. One should be eager to experience preparing, work inside the system, and dedicate time to regulate and oversee everyday store activities. After consenting to the Franchise Arrangement, franchisers have to pay a Franchise Fee to take care of the expense of preparing, opening help, operational manual, and the utilization of the trademark. Franchisers will be accountable for structure the store as indicated by their details and conveying their items to clients. The achievement of the store will rely upon the capacity to give quality client administration and a spotless, safe, and neighborly retail condition. The agreement will be compelling for a time of 10 years and is sustainable upon the shared understanding of concerned gatherings.

Operating Requirements

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In the operating requirements of Chatime provided at their official page Chatime.com, there are eight steps on how to become one of their franchisees, these are the following: 1. Quick expression of interest form 2. Let’s Chat 3. Complete full Application and submit application deposit (₱ 172,740.15) 4. Franchise face-to-face meeting 5. Review Financial Model and Business Plan 6. Operations Meeting and In-Brewery Experience 7. Draft legal documents provided 8. Final approval meeting Here in the Philippines, they offer a package for those who want to franchise their store (Franchise Business Philippines, 2019): 1. Franchise Term: 3 years 2. Franchise Model: Individual 3. Store space requirement: 40 to 60 square meters 4. Minimum staff needed: 4 to 8 depending on the operational needs 5. Headquarter Support: Equipment or facilities, training programs, marketing support, uniforms, and store layout are all included. 6. Rental fees, operational funds, wages expenses, utilities, and other expenses are excluded.

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7. A training program that lasts up to 15 days is included in the package. Chatime also includes some answers to frequently asked questions on their official page, these are: 8. How much does it cost to put up a Chatime enterprise? Chatime t-brewery costs on average between ₱ 15,703,650.00 – ₱ 18,320,925.00 + Goods and Services Tax. This includes the franchise fee, design, and fits out, equipment, signage, starting inventory, and training. 9. Am I responsible for looking for the location? No, chatime looks for the location. 10. How many days does it take for the application process? It takes 6-8 weeks; however, this is highly dependable on you as a potential business partner. 11. How long is a Chatime Franchise Agreement? The Chatime Franchise Agreement is typically a 5-year agreement with a further 5-year.

For other inquiries, they can contact at: SM Megamall No. 654 Telephone No. 654-3531 International Hotline Franchise: +886-988-050-818

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Management and Personal Requirements 1. STORE MANAGER - is the person who is responsible for supervising and appraising staff, in charge of daily operations in store, and the one who recruit and train staff. They are the one who ensures that their staff is giving good customer service and the one who is responsible for customer complaints. They check the financial performance of the store. In short, they are the ones who manage the store, especially in monitoring the environment of the retail in the store. SKILLS AND ABILITIES ●

Has good communication skills

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Problem-solving skills

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Accountable and Approachable

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Ability to work on a team

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Strong interpersonal skills

QUALIFICATIONS ●

At least one year of restaurant or retail management experience

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High school diploma or equivalent

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Recruiting, training and necessary computer skills

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Flexible work schedules

2. SHIFT SUPERVISOR – is the person who helps and assists the store manager in ensuring the success of Chatime business. They uphold values and standards in daily

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operations in the store. The supervisor ensures the overall operation for the store in the absence of the Store Manager. The supervisor is also the person who is responsible for managing shift requirements. SKILLS AND ABILITIES ●

Effective oral communication skills

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Knowledge of the retail environment

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Team-building skills

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Ability in providing direction to team members

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Ability to work in a team-building

QUALIFICATIONS ●

High school diploma or equivalent

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At least 1-year supervisory experience

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Flexible work schedule

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1 to 2 years of customer service experience in a retail or restaurant environment

3. BARISTAS – this person is called as the team members of Chatime. They provide the worldwide standard of customer service that serves quality beverages and products and maintains a clean and efficient store environment. They will be the one who is responsible for acting under the Chatime’s guiding principle. They ensure the health, safety and sanitation guidelines for all products and equipment usage. SKILLS AND ABILITIES

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Fast learner

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Strong interpersonal skills

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Ability to work in a fast-paced environment

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Ability to build a good relationship

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Ability to work in a team setting

QUALIFICATIONS ●

No previous experience required

Intellectual Property Privacy Policies 1. Presentation 1.1 Thanks for visiting the https://www.chatime.com.ph site (the "Site"). Chatime Group exchanging as Chatime Philippines (ABN 60 136 677 453) and its related bodies and every one of its freely possessed franchisees ("Chatime Franchisees") (all things considered alluded to as "Chatime") perceive the significance of ensuring the security and the privileges of people in connection to their data and are focused on ensuring the protection of individual data as per Filipinos security laws. 1.2 This Privacy Policy sets outs Chatime's way to deal with taking care of individual data and incorporates data on how they gather, oversee and keep secure data.

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1.3 Chatime regard customer rights to protection under the Privacy Act 1988 (Cth) (Act) and they follow the majority of the Act's prerequisites regarding the accumulation, the board, and divulgence of your data. 1.4 The extent of this Privacy Policy covers the individual data dealing with practices of cafés possessed by Chatime in the Philippines and Chatime Franchisees. Interminable Plus Pty Ltd does not control the utilization or divulgence of individual data and might not approach the individual data held by Chatime Franchisees. Chatime Franchisees are in charge of guaranteeing that the data gathered by them is taken care of as per this Privacy Policy and Filipinos protection laws. 2. What is personal information? 2.1 When utilized in this Privacy Policy, the expression "individual data" has the significance given to it in the Act. All in all terms, it is any data that can be utilized by and by recognizing customers. This may incorporate the customer’s name, address, phone number, email address, and calling or occupation. 2.2 If the data gathered distinguishes a certain individual, or is sensibly recognizable from it, the data will be viewed as close to home data. 3. What personal information do they collect and how it is used? 3.1 The individual data gathered and is sensibly required for at least one of the business capacities or exercises and will do as such by legal and reasonable methods.

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3.2 The sorts of individual data to be gathered will rely upon what kind of collaboration a customer does with Chatime. In any case, it might incorporate in addition to other things: 3.2.1 The personal data given when an individual takes part in an advancement, rivalry, special movement, review, statistical surveying, SMS, MMS and other portable administrations, buy in the mailing list, partake in or join the Chatime Loyal-Tea enrollment program, use Chatime's Mobile Application or communicate or pursue the web-based social networking pages like Facebook, Twitter, LinkedIn and Instagram. This data may incorporate, for instance, the first and last names, postal location, physical location, email address, phone number, copy number, age or date of birth; and Chatime Loyal-Tea enrollment subtleties; 3.2.2 Personal data given to Chatime when a customer put in a request at one of the businesss’ T-Breweries. This data may incorporate, for instance, the first and last names, postal location, physical location, email address, phone number, past request data, Chatime Loyal-Teas participation subtleties, Mastercard subtleties, and Internet Protocol (IP) address; 3.2.3 Information in regards to the interests, inclinations, acquiring conduct and involvement with the administrations, together with any extra data important to convey those administrations and react to a customer’s inquiries; 3.2.4 If someone is applying for a situation with Chatime, the data to be gathered will be as definite in the area beneath entitled "Work Applications";

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3.2.5 If someone is applying to turn into a Chatime Franchisee, the data to be gathered will be as definite in the area beneath entitled "Establishment Applications"; and 3.2.6 Any extra data identifying a person that is straightforwardly given through his/her entrance and utilization of Chatime’s Website or in a roundabout way through the utilization of Chatime’s Websites, portable applications or online nearness, through the agents or something else. 3.3 Chatime may likewise gather some data that isn't close to home data since it doesn't distinguish any certain person. For instance, Chatime may gather mysterious responses to reviews or totaled data about how clients utilize the Website. 3.4 Except for when an individual will apply for a situation with Chatime or apply to turn into a Chatime Franchise, the business won't gather delicate data (which incorporates data about racial or ethnic gatherings or political or religious convictions) except if the individual have explicitly assented to such accumulation or the gathering is legally necessary. 4. Treats and web beacons 4.1 Sometimes Chatime may likewise gather data using treats. Chatime’s outsider specialist co-ops and accomplices may send "treats" to a customer’s PC or gadgets or utilize comparative advancements to upgrade online involvement with the Website and over the Internet. "Treats" are documents that can distinguish an individual as an exceptional client and store inclinations as item inclinations to reveals to Chatime which 39

site pages an individual have visited and in what request. This empowers Chatime to perceive the PC and welcome an individual each time he/she visits the Website. Chatime use treats and other specialized data to customize a customer’s visit to the Website, to dissect traffic on the Website and to follow client patterns, examples, and determinations for approved download and specialized reasons associated with a customer’s utilization of Chatime’s webpage. Treats can either be perpetual (for example they stay on a PC until they are erased) or transitory (for example they last just until the program is closed). On the off chance that customers do not wish to get treats, he/she can set his/her program so his/her PC does not acknowledge them; in any case, if customers do not mind that specific territories of the Website must be gotten too related to treats or comparable gadgets. 4.2 Chatime may likewise utilize "web guides" that screen a customer’s utilization of the Website. Web reference points (or web bugs) are little strings of code that give a strategy to conveying a realistic picture on a page to move information, for example, the IP address of the PC that downloaded the page on which the web signal shows up, the URL (Uniform Resource Locator) of the page on which the web guides show up, the time the page containing the web reference point was seen, the sorts of program that got the web reference point and the distinguishing proof number of any treat on the PC recently set by that server. When comparing with an individual through HTML competent email, web reference points let Chatime know whether somone got and opened their email. By

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setting one’s own internet browser to show HTML messages as content just, one might almost certainly avoid the utilization of some web reference points. 4.3 On their own, treats or web reference points don't contain or uncover any close to home data. Be that as it may, if an individual gives Chatime their data, it very well may be connected to the mysterious information put away in the treats as well as web reference points. 5. What happens if Chatime can not collect someone’s inforamtion? If you don't furnish to Chatime with the individual data portrayed over, a few or the majority of the next may occur: 5.1 Chatime will most likely be unable to give the mentioned administrations or items to a customer, either to a similar standard or by any means; 5.2 Chatime will be unable to give data about items and administrations that an individual may need including data about uncommon advancements; or 5.3 Chatime might not be able to tailor the substance of their sites to an individual’s inclinations and the experience of their Website may not be as pleasant or valuable. 6. For what purposes do Chatime collect, hold, use and disclose an individual’s personal information?

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Chatime gather individual data about a customer with the goal that they can play their business exercises and works and give the most ideal nature of client administration. Chatime for the most part gather, hold, use and unveil customer data for the accompanying purposes: 6.1 Processing beverages requests and requests for gift vouchers that a customer places with Chatime in one of their T-Breweries, giving the customer their items and administrations and preparing drink discounts where relevant; 6.2 Where a customer gets versatile administrations and substance by means of SMS, MMS and other portable administrations, Chatime utilize this data to convey such versatile administrations and substance to customers, to complete statistical surveying, to follow deals information and to educate customers regarding up and coming occasions and plan other limited-time exercises which might hold any importance with the customers; 6.3 To react to any questions customers may have and to process and react to any objection made by customers; 6.4 Promoting and advertising Chatime present and future items, administrations, advancements, offers, games, and rivalries to customers;

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6.5 To improve the activity or route of Chatime’s Website and educate customers regarding changes made to the Website; 6.6 Assisting customers with recalling and re-requesting from Chatiem’s menu later on and building up an online client profile and staying up with the latest; 6.7 Processing and thinking about an individual’s business application (see Employment Application segment beneath); 6.8 Providing data that an individual demands about Chatime’s establishments and handling and thinking about your establishment application (see Franchise Application area underneath); and 6.9 Facilitating Chatime’s inside business tasks, including the satisfaction of any lawful, security, and administrative necessities. Chatime may likewise utilize customer data for different purposes not recorded above which will be clarified to customers at the time Chatime gather customer data, or for such different purposes as might be required or allowed by law. 7. To whom may Chatime disclose someone’s personal information For the reasons portrayed in the area above, Chatime may reveal customer data to and share individual data with: 7.1 Chatime Franchisees, backups and related bodies corporate;

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7.2 Chatime representatives, temporary workers or specialists for the reasons for the activity of their business or there Website, satisfying solicitations by customers, and to generally give items and administrations to customer including, without restriction, web facilitating suppliers, IT frameworks directors, promoters and colleagues, installment processors, information section specialist organizations and expert guides, for example, bookkeepers, legitimate counsels, business counselors, and advisors; 7.3 Suppliers and other outsiders with whom Chatime have business connections, for business, promoting and related purposes; 7.4 Chatime Franchisees if customers have made an inquiry or protest identifying with a store that is possessed and worked by one of Chatime’s Franchisees; 7.5 Third gatherings where the law requires or approves Chatime to do as such; 7.6 Any association for any approved reason with customer’s express assent; Chatime may join or share any close to home data that they gather from customers with data gathered by any of their related bodies corporate (inside the Philippines). 8. Direct marketing materials 8.1 Chatime may send customers direct advertising interchanges and data about their very own items and administrations and for different organizations inside Chatime that they consider might bear some significance with customers. These interchanges might be sent in different structures, including mail, SMS, fax and email as per pertinent

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showcasing laws. Customers agree to Chatime sending them those immediate showcasing correspondences by any of those techniques. 8.2 If customers demonstrate an inclination for a technique for correspondence, Chatime will try to utilize that strategy at whatever point handy to do as such. Moreover, whenever customers may quit accepting promoting correspondences from them by reaching Chatime (see the subtleties beneath) or by utilizing quit offices gave in the showcasing interchanges and Chatime will guarantee that the customer’s name is expelled from Chatime’s mailing list. 8.3 If Chatime can acquire the customer’s earlier assent, Chatime may utilize the customer’s data for the motivations behind direct advertising of items and administrations for chose outsiders, if customers have consented to their subtleties being passed on to outsiders. 9. Business Applications 9.1 Generally, the sort of close to home data that Chatime gathers about candidates is the data incorporated into the franchisee’s application for business, for instance, name, postal location, phone number, email address, instruction subtleties, work history and other data identifying with the franchisee’s work involvement. 9.2 In thinking about the franchisee’s application, Chatime may likewise get individual data about the franchisee from outsiders, for instance, from his/her past managers or designated arbitrators. Subject to the franchisee’s assent, Chatime may likewise gather 45

delicate data about the applicant, for example, data about his/her wellbeing (counting any handicap) or any criminal record he/she may have. 9.3 Chatime gather individual data for any at least one of the accompanying purposes: 9.3.1 Assessing the applicant for a situation with Chatime or one of their related substances; 9.3.2 Assessing whether the applicant is reasonable to advance to each phase of the enlistment procedure for an empty position; 9.3.3 Storing the applicant’s data for future business openings. On the off chance that the applicant does not furnish Chatime with the data they demand, Chatime will be not able to complete at least one of the above mentioned. 9.4 Chatime may unveil the applicant’s data to: 9.4.1 Referees or past bosses; 9.4.2 Recruitment organizations or offices or contractual workers following up for Chatime’s sake; 9.4.3 Chatime related substances and Chatime Franchisees; 9.4.4 Employees of Chatime in different areas, franchisees of Chatime in other areas or other Chatime substances around the world; and

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9.4.5 Law authorization offices to confirm whether the applicant has a criminal record. On the off chance that Chatime connects outsider contractual workers to perform administrations for them which include taking care of individual data; Chatime will find a way to keep the temporary worker from utilizing the individual data except for the reason for which it was provided. 10. Franchisee Applications 10.1 Generally, the kind of close to home data that Infinite Plus Pty Ltd gathers about establishment candidates is the data included in the Franchise Application Form for instance name, postal location, phone number, email address, instruction subtleties, residency status, work history, budgetary limits and other data identifying with the franchisee’s capabilities and experience. Should the franchisee’s application be fruitful, Infinite Plus Pty Ltd will likewise get additional data from him/her, for example, his/her financial balance subtleties for the reasons for month to month direct charges. 10.2 In thinking about the franchisee’s application, Infinite Plus Pty Ltd may likewise acquire individual data about him/her from outsiders, for instance, from his/her past managers or selected refs. Subject to the franchisee’s assent, Infinite Plus Pty Ltd may likewise gather sensitive data about him/her, for example, data about any criminal record he/she may have or his/her FICO assessment. 10.3 Infinite Plus Pty Ltd gathers individual data for any at least one of the accompanying purposes:

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10.3.1 Assessing application to turn into a Chatime Franchisee; 10.3.2 Assessing whether the franchisee is reasonable to advance to each phase of Chatime's establishment enlistment process; 10.3.3 Storing franchisee’s data for future establishment openings; If the franchisee doesn’t give the data mentioned, Infinite Plus Pty Ltd will be not able to complete at least one of the above mentioned. 10.4 Infinite Plus Pty Ltd may unveil Franchisee data to: 10.4.1 Referees or past bosses; 10.4.2 Chatime related substances; and 10.4.3 Law authorization offices to confirm whether Franchisee has a criminal record; or If Infinite Plus Pty Ltd connects outsider contractual workers to perform administrations for us which includes taking care of individual data, Infinite Plus Pty Ltd will find a way to keep the temporary worker from utilizing the individual data with the exception of the reason for which it was provided. 11. How might a franchisee access and correct his/her personal information? 11.1 Franchisee may demand access to any close to home data Chatime hold about him/her whenever by reaching Chatime (see the subtleties underneath). Chatime hold data that the franchisee is qualified for access, Chatime will attempt to give the franchisee reasonable methods for getting to it (for instance via emailing or messaging it to the 48

franchisee. Chatime may charge a sensible organization expense to take care of the expenses of gathering the franchisee’s solicitation. Chatime won't charge for basically causing the solicitation and will not charge for making any revisions to franchisee’s data. 11.2 There might be examples where Chatime can't allow franchisee access to the individual data they hold. For instance, Chatime may need to decline to get to if conceding access would meddle with the security of others or on the off chance that it would bring about a break of classification. If that occurs, Chatime will give the franchisee composed purposes behind any refusal. 11.3 If the franchisee accepts that individual data Chatime hold about him/her is wrong, fragmented or incorrect, at that point he/she may demand Chatime to revise it. 11.4 To ensure franchisee’s protection and security, Chatime will find a way to confirm franchisee’s character before conceding access. 12. What is the process for complaining about a breach of privacy? 12.1 If franchisee accepts that his/her security arrangement has been ruptured, if it's not too much trouble contact Chatime’s Privacy Officer utilizing the contact data beneath and give subtleties of the episode with the goal that Chatime can explore it. 12.2 Chatime demand that protests about ruptures of security be made recorded as a hard copy with the goal that Chatime can make certain about the subtleties of the objection. Chatime will endeavor to affirm as suitable and important with the complainant’s

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comprehension of the direct pertinent to the protest and what you expect as a result. Chatime will illuminate the complainants whether they will lead an examination, the name, title and contact subtleties of the exploring official and the evaluated consummation date for the examination procedure. 12.3 After Chatime have finished their inquiries, they will reach the complainants, more often than not recorded as a hard copy to exhort the result and welcome a reaction to their decisions about the grumbling. If Chatime will get a reaction from the complainants, they will evaluate it and exhort on the off chance that they have changed their view. 13. Do Chatime disclose any personal information to anyone outside the Philippines? 13.1 At times, Chatime may reveal any personal data to elements situated outside of the Philippines including the accompanying: 13.1.1 Chatime related bodies corporate found abroad; and 13.1.2 Other outsiders found abroad. Where Chatime share customer data with such substances, they will do as such in consistence with Filipino security laws and will find a way to guarantee that the beneficiaries of customer data don't break the protection commitments identifying with Chatime’s customer data. 14. Security

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14.1 Where Chatime store customer data relies upon what connection they have had with them. A few regions may incorporate databases for preparing client inquiries or criticism, mail trade servers or email databases for showcasing correspondences. 14.2 Chatime will find a way to guarantee that the customer data is shielded from abuse and misfortune and unapproved access, change or divulgence. Chatime may hold customer data in either an electronic or printed copy structure. Chatime just keep customer data for whatever length of time that it is required for the reasons for which it was gathered or as generally legally necessary. Chatime will take proper measures to annihilate or for all time de-recognize customer data if Chatime never again need to hold it. These measures may change contingent upon the sort of data concerned, how it was gathered and how it was put away. 14.3 As Chatime’s Website is connected to the web and the web is inalienably unreliable, Chatime can't give any affirmation for the security of transmission of data that is imparted to them on the web. Chatime likewise can't ensure that the data customers supply won't be blocked while being transmitted over the web. Likewise, any close to home Information or other data that is transmitted inline is at the customer’s hazard. 15. Connections 15.1 Chatime’s Website may contain connections to different Websites worked by outsiders which might hold any importance with the customers. They make no portrayals or guarantees in connection to the security strategies of any outsider Website and are not

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in charge of the protection approaches or the substance of any outsider Website. Outsider Websites are in charge of advising the customers about their very own security rehearses. 15.2 Chatime may utilize outsider notices on their Website. Outsider commercials are not suggestions or supports by Chatime or any of its subsidiaries. To the degree allowed by law, Chatime isn't in charge of the substance (counting portrayals) of any outsider notice on the Website. These outsiders may see, alter or set their treats. The utilization of these advances by such outsiders is liable to their security approaches and isn't secured by this Privacy Policy. 16. Franchisee privacy policies As referenced above, several Chatime T-Breweries is claimed and worked by franchisees that are autonomous representatives and businesspeople. Some franchisees may likewise worksites and are required to pursue this Privacy Policy. 17. Changes to this privacy policy Now and then, Chatime may amend this Privacy Policy. Any refreshed variant of this security strategy will be posted on their Website. It would be ideal if the customers survey it normally. 18. Reaching Chatime

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If customers have any inquiries or remarks about this Privacy Policy, please utilize the contact interface on their site or contact our Privacy Officer utilizing the subtleties set out underneath: Chatime Privacy Officer SM Megamall No. 654 Telephone No. 654-3531 International Hotline Franchise: +886-988-050-818 Our Privacy Officer will think about your inquiry or protest and react to you in a sensible timespan. This security strategy was keep going refreshed on 09/07/2018. Regulations/Environmental Issues The trendy burn in the industry comes through the famous bubble tea franchise, Chatime. The outrage is revolving around almost ₱312,090,000.00 in unpaid wages considering that 2009 has provoked a record into the ₱8,842,550,000,000.00 industry. The employer ought to be upon civil expenses for their mistake. An audit of the Chatime bubble tea franchise community's final year discovered that underpaying people was once a fashion in almost 86 percent of the 20 shops scrutinized, other audits in late 2016 spotlighted "systemic" underpayment problems through the entire franchise network.

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The Chatime scandal follows a damning parliamentary file into the franchising industry, pointing out the cutting-edge regulatory environment, "manifestly failed to deter systemic bad habits and exploitative behavior and has entrenched the strength imbalance,” the strength imbalance in question, that between franchisees and franchisors. It additionally reported; the enterprise mannequin is based on franchisees developing sales, no longer profit, with head workplace taking a 6 percent royalty from every sale as Filipinos slurp on a developing range of bubble tea. Outgoings encompass rent, wages, royalties, 3.5 percent to an advertising fund, payroll device fees, track and thriller consumer costs, cups, syrup, tea leaves, pearls and toppings sourced from the franchisor and refurbishment costs of up to ₱ 7,800,000.00. It looks like a machine that is destined to fail for two reasons: Lack of leadership, and Lack of values. Part blame could be in the behavior of the franchisee, it assumes from the above quote, Chatime can all see that a commercial enterprise mannequin can considerably affect the outcome, despite what takes place in the keep and management. Imagine having a commercial enterprise passed to others who is systemic manageable used to be zero earlier than they even started? Their leadership efforts would have to be very robust to overcome that. It is very apparent to Chatime how a gadget like this has long past wrong. And its proof is in the reports. In the charted submissions through franchisees over the inquiry, of the top ten reported issues, at least four of them, it stated correlate at once to negative leadership. It is taken from the top ten problems raised by way of franchisees in exclusive submissions: Ineffective dispute resolution, Owner and commercial enterprise model

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changes, Bullying, threats and intimidation, Power imbalance and unfair contract terms. All four of these come from lousy leadership. Moreover, as you can deduce, poor leadership leads to massive risk, and in most cases, failure — the unsightly lesson of how vital these two things are in business. The ₱314,500,000.00 pesos Chatime will pay back from their earnings might be a lesson for them. However, it is worse than that, due to the fact while they would possibly have bought away with a few higher dollars over the years, what has happened to the company. What about their employees who have had to go without their entitlements for the sake of profit? Chatime may be unable to come out of this disgrace, and worse yet, may no longer be capable of reclaiming any commercial enterprise with an "unplanned" loss of ₱314,500,000.00 and a recognition in tatters. In Chatime's case, if management and values that appeared after man or woman franchisees and personnel were in place. The giveback from their human beings would have helped with the increase of the enterprise instead than taken it down. An appropriate cause to get people's values in the region earlier than the presence of profit outweighs the presence of integrity within an organizational culture. An organization's tradition of purpose solutions the crucial questions of who it is and why it exists, they have a culture of motive past, making a profit. Critical Risk Factors ChaTime is known for its top of the line milkteas. However, in certain cases, this organization faces a ton of hazards and risks through its activity and to its clients. A

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portion of this hazard can lead an organization to its liquidation or even bankruptcy if it is not appropriately fixed or the people who were engaged with this industry have not located the correct answer for fix this hazard. These are the hazard that Chatime might experience: • High Competitions from Beverage Brands One of the hazard elements adding to the impression of danger is the number of potential rivalries in the Beverage industry. Some other brands may offer a similar item and dietary benefit and are cheap or more expensive yet more delectable. Chatime is one of the Top 5 Bubble Milk Tea marks in Taiwan, #2 in the Philippines (behind Serenitea, which is the first in the nearby market), is as yet developing quickly as indicated by Anton Diaz. • Pricing Value setting is a hazardous endeavor in a milktea selling business. Chatime would regularly confront trouble in figuring out what cost to charge for their items and can be marketable for its client, intentionally for the Filipino individuals. The hazard is particularly obvious for its stores selling milk teas. Some retail locations decide costs dependent on the contender's qualities. Sharp retail proprietors additionally explore different avenues regarding distinctive evaluating systems, including introductory 'get one, get one free' offers and other fantastic opening limits. • Theft and Damage 56

ChaTime stresses over robbery and retail locations face an ever-present concern concerning burglary of its merchandise. Opening a retail location requires acquiring an enormous supply of things and recharging these requests as often as possible and not all requests are arranged appropriately by boards and conveyance team, milkteas that are legitimately possessed by ChaTime can experience the ill effects of being harmed and even expiration. Dealing with this hazard requires having a stock administration system set up. • Taste and Preferences Individuals effectively and easily change their tastes and inclinations to a certain item and it's another hazard to the organization. In particular, selling milk tea items, anticipating which flavor to sell is a consistently evolving action. The store may go around this hazard by going into arrangements with discount makers of these things. At the point when the most recent thing is made, the store knows ahead of time the normal expense and guarantee related to the great. They are willing to patch up their picture frequently to contend. Utilize overwhelming promoting for new and unexplored items and gathering buyer criticism regularly as a method for looking after clients. What's more, if this thing can't be trailed by the organization, they may lose cash as well as clients as well. • Overcoming Risk

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For every circumstance, Chatime ought to overcome the customer's fear of danger if they will make the arrangement. That entire Chatime do, from the primary contact, through closing down deals and the follow-up to the deal, must be finished with the client's view of hazard highest in Chatime’s reasoning.

SWOT Analysis This is a synopsis of the business' most important strengths, weaknesses, opportunities, and threats. It empowers organizations to recognize the positive and negative impacting variables inside and outside of an organization or association. Other than organizations, different associations, in the territories, for example, network wellbeing and improvement and instruction have discovered much utilization in its core values.

SWOT Analysis

Strengths

Weaknesses

Commented [1]: kani oh

1. Product familiarity

1. Forecast demand

Commented [2]: kani oh

2. Customer value

2. Cash flow

Commented [3]: kani oh

3. Responsive

3. High Prices

Commented [4]: kani oh

Opportunities

Threats

Commented [5]: kani oh

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1. Huge market

1. Seasonal demand

Commented [6]: kani oh

2. Health preferences

2. Existing milk tea business

Commented [7]: kani oh

3. Market Trend

3. Theft and Damage

CHAPTER II

Review of the Related Literature This chapter presents the review of related studies of the current system relevant to the feasibility of franchising a milk tea business in the City of Mati. This will tackle about theoretical basis, what is franchising, its history and topics related to milktea. A section is also provided for significant material on Chatime. Theoretical Basis Consumer Theory

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The Consumer Theory is the investigation of how individuals choose to spend their cash, given their inclinations and spending requirements. A part of microeconomics, shopper hypothesis indicates how people settle on decisions, given limits, for example, their pay and the costs of products and enterprises. Through the purchaser hypothesis, we are better ready to see how people's preferences and wages impact the interest bend. These decisions are among the essential elements, molding the general economy (Chen, 2019).

Demand Theory Demand Theory is a monetary guideline identifying with the connection between buyer interest for merchandise and ventures and their costs in the market. The request hypothesis shapes the reason for the interest bend, which relates the customer wants to the measure of products accessible. As all the more a decent or administration is accessible, request drops thus does the harmony cost. Request hypothesis features the job that requests plays in value arrangement, while supply-side hypothesis supports the job of supply in the market (Hayes, 2019). Franchising a Cha Time Business Franchising a Cha Time Tea Brewery in the Philippines cost between ₱15,703,650.00-₱18,320,925.00 + Goods and Services Tax. They offer a package deal to their clients whoever wants to put up their business. It comes with a 3 years franchise

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term, space requirement of 40 to 60 meters, Equipments and facilities, a 15 day- training program, uniforms and store layout (Franchise Business Philippines, 2019). What is a Franchise Business? A type of business-related acquisition of the name of a business and gaining a licensed and access to a business’s proprietary knowledge and trademarks to sell goods and provide services, in accordance to what the business originally offers (Investopedia, 2019.)

International Franchising Bubble tea brands expand their business by commerce franchise. Supported the IFA (International Franchise Association), franchising is solely a way for growing a business and distributing the products and services through a licensing relationship. Franchisor and franchisee conclude a contract that franchisor grants a license and privilege to the franchisee to control the business underneath their trademark. Franchisor provides a developed manner of doing business like merchandise, services, software system, training, procurance, and support. Comparatively, the franchisee pays a particular quantity as compensation (IFA 2018). History of Franchising

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The United States is the chief of the world in establishment organizations and has a celebrated history with the establishment plan of action. The idea of the establishment goes back to the mid-nineteenth century, the most acclaimed case of which is Isaac Singer. Singer, who concocted the sewing machine, made establishments to effectively circulate his trademarked sewing machines to bigger zones. During the 1930s, Howard Johnson Restaurants soar in notoriety, making ready for eatery networks and the consequent establishments that would characterize the remarkable ascent of the American inexpensive food industry.

Right up until establishments represent an enormous level of U.S. organizations. The 2017 top 15 business establishments incorporate McDonald's, Taco Bell, Dairy Queen, Denny's, Jimmy John's Gourmet Sandwiches, and Dunkin' Donuts. Other prevalent establishments incorporate the chain hotel industry, for example, Hampton by Hilton and Day's Inn, just as 7-Eleven Inc. also, Anytime Fitness (Hayes, 2019). Upsides and downsides of Franchises There are numerous favorable circumstances to putting resources into an establishment, and there are likewise downsides. Broadly perceived advantages to purchasing an establishment incorporate an instant business activity. An establishment accompanies an inherent business equation including items, administrations, even representative regalia, and entrenched brand acknowledgment, for example, that of McDonald's. Contingent upon the establishment, the franchisor organization may offer 62

help in preparing and money related arranging, or even with endorsed providers. Regardless of whether this is a recipe for progress is no assurance. Disadvantages incorporate with substantial beginning up expenses just as continuous sovereignty costs. To take the McDonald's model further, the evaluated aggregate sum of cash it expenses to begin a McDonald's establishment ranges from $1 million to $2.2 million. Establishments, by definition, have progressing expenses to the franchisor organization as a level of offers or income. This rate can extend from 4% to 8%. Different inconveniences incorporate the absence of region control or imagination with your very own business, just as a remarkable lack of financing alternatives from the franchisor. Different elements that influence all organizations, for example, poor area or the board, are additionally potential outcomes (Hayes, 2019). Let’s Talk About Milk Tea Milk teas have been around for many years in various forms. The first common type milk tea began in Taiwan, thinking back to the Eighties. Since then, however, this once honest drink has become a revolutionary tea canvas that has allowed tea lovers to try their favorite teas with a myriad of creamers, flavors, and sweeteners. However, that is not even the most straightforward half. It is conjointly improbably frequent and provides fantastic profit margins for tea retailers. The average bubble tea search can sell between a hundred and fifty and three hundred drinks per day, in line with some trade reports. The drink attracts many alternative demographics and permits tea search house owners to form tea their focus once more.

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Once customers get hooked on one type of milk tea, begin by introducing them to different designs, which could open them up to totally different tea bases, too. So, expand the menu to incorporate milk teas. They are an excellent addition to any tea search as the simplest way to higher use the existing stock. Lastly, attract new customers and increase profits (Hernandez, 2017).

Milk Tea as a Modern Tea In today's modern world era - people want convenience in every possible activity they do, ranging from working to playing to just hanging out and chilling. Thus, there is also an evolution concerning people's preferences with their drinking customs. Young ones, especially those who are born from millennial generation to Generation Z, want to get on trends with the most popular drinks in the present time. Hence, Milk teas are one of their favorite drinks to savor (T Ching, 2017). Milk teas have become a worldwide trend that earned much patronization from every consumer that buys it (ICSC, 2019). However, what is milk tea? It is a combination of tea-flavored drink that is partnered with milk to stabilize the taste and neutralized the bitter taste effect of the tea (The Spruce Eats, 2019). Milk teas also in variation, depending on what prefers to drink; examples are tea latte which from boiling natural-produced

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milk of cows. The other one is a cream tea which is commonly prepared out of adding a heavy cream on the tea, whichever is preferred drinks milk tea guarantees an extraordinary taste and a new distinguished flavor to offer (The Spruce Eats, 2019). Shen Nong (named a "Divine Healer") discovered tea and is said to have been found in the early part of the third thousand years BC by he wanted to find and instruct about new herbs to be utilized as a drug. Tea was found when water was bubbling in his nursery when a Camellia Sinensis leaf fell into the pot. Different renditions of the story refer to the wellspring of tea leaves was not from a tree, but instead from a camellia branch which was energizing the flares beneath it. Still, others endeavor to approve the validness of the occasion by fastening a date to Shen Nong's involvement, stating that it happened in either 2737 BC or 2690 BC (ZenTea, 2017) Boba milk tea is one of the types of milk tea. It is most regularly accepted to have begun in Tainan, Taiwan at Hanlin Teahouse. The proprietor of the teahouse, Tu Tsonghe, first promoted the beverage with white custard balls in 1986. Afterward, he changed to the now-commonplace dark pearls. By the mid-1990s, Boba was a sensation all through East and Southeast Asia. In North America, it first ended up in vogue in quite a while with prevalently Asian and continuously well-known everywhere throughout the world (Scalise, 2019). Bubble tea is beneficial to the human body as it boosts energy to strengthen the immunes system and prevents free radical damage (Staughton, 2018). The Thai term "Boba" alludes explicitly to the chewy little pearls produced using tapioca. Pearls are without gluten and ordinarily blended with dark-colored sugar for 65

flavor. The refreshment itself perhaps a tea or squeeze and is regularly alluded to as boba tea, bubble tea, or pearl milk tea. As the healthy benefit relies upon the planning, numerous beverages are high in sugar, carbs, and calories (Czinkota, 2019).

Boba balls are hurled into prepared green or dark tea that has been spiked with organic products, natural product juice, and adds sweetener to the drink. It is charmingly chewy surface and somewhat sweet all alone and is frequently spiked with extra sugars to the drink. During the 1980s, boba is most ordinarily served in hot and cold refreshments called bubble teas made well known in Taiwan (White, 2019). Milk tea has been a prevalent beverage among adolescents and grown-ups for just about ten years. It pulled in a few business-situated individuals to begin their milk tea outlet or establishment and grow outside brands. Chatime is one of the milk tea brands that originated in Taiwan. It gives increasingly extraordinary, assorted, and creative flavors that caused the brand to grow to its neighboring nations as well as internationally (Siasoco, 2014). Retail News Asia's article states that visiting a bubble coffee shop is among the most prevalent recreation exercises among generation Z. Individuals conceived somewhere in the range of 1996 and 2015, as indicated by a review by statistical surveying firm Nielsen. The overview of 210 Gen Z individuals in Hanoi and Ho Chi Minh City last October 66

found 81 percent of respondents saying bubble coffee shop was their preferred home base. Vo Van Quang, a marking technique expert, and promoting guide, stated: "Most 15year-old young ladies do not drink espresso, yet they will happily pay for some milk tea. Adolescents are a huge client bunch for tea-based beverages, consequently the intense interest for air pocket tea." The milk tea feels invaded the metro. Individuals are strolling in the city holding their cups loaded up with custard pearls and tasting from big colorful straws. Wellknown milk tea chains have been around for a long time, for example; Serenitea, Chatime, and Happy Lemon. Neighborhood milk bistros are rising all over the place, exploiting the fever and taking into account the flavor of youngsters and youthful grown-ups. It has turned into a staple beverage for the young age, overshadowing other refreshments sold in the market (Mindanao Times, 2019). Milk tea is not new to the Dabawenyos sense of taste since a large portion of us grew up drinking 'sago't gulaman' and taho. Those are both smooth and rich in the surface having either 'sago' or custard pearls. Milk tea is undoubtedly an advancement of these traditional Filipino beverages. Numerous shops have been set up, so milk tea is not as it used to be (Mindanao Times, 2019). Franchise Business Philippines stated that Chatime is different from other milk tea brands. Hence, it actualizes the possibility of exact planning, exact quality, and exact temperature tea blending to ensure the most elevated quality fixings are fermented like clockwork and arranged directly before the client's eyes. It is thus making Chatime a 67

reliably top-notch drink around the world. Moreover, it has the best franchise package. New is ideal, and you do not get a lot fresher than Chatime Teas. Chatime can be found anywhere to satisfy milk tea cravings of people. It serves crisply prepared tea blended with an assortment of regular flavors. The exemplary Chatime Milk Tea is a stand apart with its essential mix of milk and dark tea. Notwithstanding milk tea, Chatime has a massive determination of beverages that incorporate smoothies, fruit tea, coffee, tea-based latte, and chocolate drinks. Sweetness levels can be balanced from 0% to additional sugar, and may likewise ask not to incorporate ice or include additional ice. The standard bubble tea keep will promote between 150 and 300 drinks per day, according to some industry reports. The drink attracts many one of kind demographics and lets in tea shop proprietors to make tea their center of attention as soon as again. It has often been heard calling milk tea a "gateway tea." It is a handy way to introduce customers to the world of uniqueness teas via way of a popular, enjoyable, and intriguing beverage that can be served hot or iced once customers get hooked on one fashion of milk tea. The entity can start to introduce them to different styles, which may open them up to exclusive tea bases, too. So, make more significant the menu to encompass milk teas. They are an outstanding addition to any tea keep as a way to higher use present stock, appeal to new clients, and expand profits (Zoleta, 2019). Milk tea Mania

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Milk teas have been around for as long as we can remember, but it was not until last year that this drink's popularity soared –it is the drink line's fresh Starbucks. Today at Metro Manila, dairy tea stores are packed with clients at all hours. So, purchasing one would require their customers to last in the queue for at least 15 minutes.

It is no surprise that according to GrabFood's 2018 study, the Philippines ranked second in milk tea consumption in Southeast Asia. The said entity got milk tea orders increased by 3,500 percent from June to December in that year alone. Considering that even in app-based food delivery services, the Philippines is not the top of the ranking, yet the nation has managed to dominate Grab's milk tea stats (MA, 2019). Metro Manila has plenty of milk-tea stores that give Filipinos plenty of options to fulfill their newly found love of milk teas. While the base milk-tea beverage may all taste comparable, there are more ways to add flavors to this beverage than one– this is how milk-tea stores define themselves in this competitive but delicious industry. With so many stores to choose from with menus featuring a broad range of milk teas, it may not be possible to get a taste of everything without risking the sugar overload to an individual's health. The safest option left is to get their signature drinks if the customer would want to skip to the best drink that each store has to give (MA, 2019). The Milk Tea Craze Bubbles Up

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Many Filipinos grew up drinking sago't–gulaman. Thus, we tend to are conversant in having very little foodstuff "bubbles" in our drink. That well-liked samalamig was flavored with peanuts or palm sugar, and sometimes a touch of vanilla to create a smooth, sweet thirst quencher on a summer day. Then come-up with a mind-blowing boba revolution that came courtesy of Taiwan. The common-or-garden margin sago't-gulaman stand has been replaced by stalls marketing milk tea: a cold food consisting of fixings, tea, milk, boba pearls, and crushed ice. The craze started in Taiwan back within the Eighties, and whereas nobody is sure concerning its origins, Liu HanChie of Chun Shui Tang tea shop in an urban center, Taiwan, claims that within the early Eighties, he experimented with cold milk tea by adding fruit, syrup, candied yams, and foodstuff bubbles. Since Taiwan was not a wellliked traveler destination for Filipinos earlier, Milk Tea created its thanks to the Philippines around the late 1990s. The first iterations were the pearl shakes, together with the brands Zagu fixing search to sell cold fruit-flavored drinks that featured starch that was larger than what we tend to were accustomed. In 2008, Serenitea came to be, giving cold tea drinks during a market that was still for the most part dominated by occasional outlets. It pioneered the production of tea machine with the supplementary possibility of customizing the drinks in terms of sweetness level and sinkers. Locally, the total learned, fast development, expanding to twelve highdeceivability stores in mid2012, to around seventy branches by 2018. Different brands have begun to are available too, notably Chris Tiu's Happy Lemon, that came by the

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method of an urban center. There has even been an awesome revivification of interest, with new brands coming back in mainly from Taiwan. Palm tree recent Tea and Juice is among those riding this second wave, in conjunction with Macau Imperial, Gong Cha, and Tiger Sugar (Pamaran, 2019).

The Milk Tea Craze Milk teas are not necessarily new to the palate of the Dabawenyos since most people grew up drinking sago't gulaman and taho that at each whitish and creamy in texture, having either sago or food product pearls. Milk tea is possibly associate degree evolution of those ancient Filipino drinks. Milk tea is alleged to possess originated in Taiwan. A Taiwanese named Liu Han Chie of "Chun Shui Tang" tea shop in the city, concocted it within the 1890s, serving cold Chinese tea so eventually adding food product pearls as associate degree experiment that quickly became in style not merely throughout the Asian countries however together with the US and Europe. Milk tea comes in several varieties; however, its four common ingredients are freshly brewed tea, milk, sugar, and toppings like food product pearls. The kinds of tea utilized in milk tea at tea leaf, tea leaf (usually bush tea leaf and matcha), and tea leaf tea. Apart from the standard contemporary milk, soy milk is obtainable in some milk tea outlets as another ingredient to cater to customers World Health Organization are

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disaccharide intolerant. The sugar level of the milk tea is often custom relying on one's preference. Finally, a wider variety of toppings apart from food product pearls are on the market, and these are grass jelly, low jelly, egg pudding, and Aloe Vera. For those that have not tried milk tea nevertheless, in style milk tea flavors select from that may assure not queer are Wintermelon, Okinawa, Taro, Thai, and therefore the classic Bubble tea. Dabawenyos' cravings for bubble tea have become palpable; the quantity of milk tea outlets within the town has adults immensely till. Business folks do not solely contend with their distinct drink choice; however, conjointly the ambiance and level of comfort of their milk tea outlets. A gratifying milk tea and its esthetically pleasing interior style can sure land in people's Instagram and Facebook feed. Turning out with artistic names for the milk tea outlets is additionally a plus for it to have been noticed by the general public (e.g., Christianitea, Worth Tea, Tealoca, and Infinitea). Milk tea outlets in Davao typically do not run out of patrons. Throughout the week, these institutions are crammed with students either finding out once a busy day in school. On the weekends, milk tea outlets became the spot for friends to catch up, enjoying every other's company whereas humoring on delectable milk tea drinks. A number of the milk tea outlets currently serve drinks till the time of day, catching up with the business aboard the Resto-bars and occasional outlets that are open 24/7. The craze has conjointly created low outlets embody milk tea drinks within their menu that affirms the promotional material was happening in the railroad line. Before the bubble tea became a universal drink, it accustomed be thought-about as an abundant

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food that solely wealthy folks will afford. However, because of the competition within the market, the worth of milk tea has become cheap. Now, folks drink it rather like low. Any time of the day, whether or not it should be early within the morning or late at midnight, folks crave for it. Milk tea connoisseurs recognize that milk tea drinks ought to have the proper quantity of milk and tea mixed along. Each part must not overpower one another ensuing to either being too sweet while not even a touch of tea or bitter-tasting while not the component of richness to that. Once the ice has fully liquid and therefore the milk tea remains to be wealthy in flavor rather than turning into a more down bland drink, one will validate that the barista has created a decent job. Also, the food product pearls should be chewy while not being sticky and ne'er tender (undercooked), mushy (overcooked), or a lot of worse laborious (raw) in texture if the milk tea is barren of these qualities, these milk tea outlets are a complete fraud. Amidst the milk tea craze incursive the town, Dabawenyos should stay wise to keep a property atmosphere. Some milk tea outlets here have joined the initiative of replacement single-use plastic straws to bamboo and unstained metal straws instead. This movement will influence many folks in turning into accountable by protective the atmosphere through manageable ways. If this discipline can continue, the number of plastic straws disposed of the milk tea consumed every day can slowly decrease, securing the condition of mother earth, whereas still enjoying the straightforward pleasures like a cup of milk tea daily.

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A few years were gone; individuals were chiefly hooked on low, fruit shakes and not-so-moderately priced mocha-java-macchiato-espresso-frappuccino-lava-whatever. However, currently, a comparatively new sense-datum has found its approach into the hearts and style buds of the Thomasian community. Upon setting foot on or around the locality of the field, it is nearly not possible not to see a minimum of one person holding a milk tea steep their hand. Looking back, teenagers were not that keen on drinking tea as most people most popular the stronger kick of low. Presently, however, many students claim to be keen on milk tea. Based on the website teas.com.au, the follow of blending milk with tea stems its roots from its British colonial days. Tea was exported from the orient that created it expensive. Folks that cannot afford drinking pure and undiluted tea can resort to adding milk as an inexpensive and attractive flavored at the time. Since then, different cultures developed their version of milk tea. Although students say they crave it, they cannot specifically say what it is regarding milk teas that they love. In an exceeding shell, it is delicious, refreshing, and well, delicious! One student has substituted her caffeine fix to take advantage of tea as a result of she gets a similar feeling once she drinks low. With food product drinks, she gets to drink each of her favorite beverages – milk and tea (Madelo, 2019) Why and How Buyers Should Drink Milk Teas Based on the study of Lindsey Goodwin (2019), Milk tea is, essentially, tea with milk included. This combination makes a smoother flavor and somewhat improves the 74

tea. It is an excellent method to serve tea in numerous pieces of the world, and it is a simple technique to spruce up a regular cup of tea. There are numerous areas on the planet where milk tea is the default sort of tea. This practice is most evident in specific pieces of India where 'tea' more often than not alludes to drain tea. To request tea without milk, demand a 'dark tea' or basically 'tea without'. Milk tea is likewise regularly expended in England, Ireland, Scotland, Canada, Sri Lanka, and Hong Kong. There are numerous minor departures from milk tea, including: ● Cream Tea - Prepared with overwhelming cream, this tea is found ordinarily in East Friesland, Germany. It is regularly called 'East Friesian Tea.' ● Hong Kong Milk Tea - Also called Pantyhose Milk Tea, this is the most popular form of tea arranged with vanished milk. ● Tea Latte - An extremely well-known tea savor discovered North America, portions of Europe, and the past. ● Cow, Buffalo, or Yak Milk are made by bubbling tea with the creature's milk. This beverage can be pointed out in the numerous pieces of India and a couple of encompassing nations. Milk tea in the Philippines Tea shops have grown throughout the metro over the previous year, efficiently cementing its position as 2011's most significant food/beverage trend. Milk tea is more inexpensive than cold designer coffee (Bianca Cosunji and Rona Capil, 2019). Although Filipino's do not have a spirited history with tea-like in China. Nestea tea and Lipton tea 75

area unit house and building staples, C2 went very massive back within the day, and most people brew our salabat or ginger tea. Milk tea has invariably been there even before the craze. Chow King has invariably been commercialism Nai Cha. Ancient city milk tea created with tea and milk sans pearls. These teas were currently inflicting craze to Filipino's. (Jasper C, 2019). Serenitea Brings the Milk Tea Trend to the Shores, Serenitea opened its first branch in San Juan, Manila, on December 9, 2008. If need to blame someone for addiction to milk tea, Juliet D. Herrera-Chen and Peter L. Chen must be founders of Serenitea. Peter, said to have spent some time in Taiwan, where there was already a full-swinging trend of milk tea. By 2009, the stores of Serenitea were already doing well and quickly caught on by other entrepreneurs. Happy Fanshu, opened close to Far Eastern University in 2009, bringing milk tea to student droves. That was just the start. Then the dairy tea shops started to populate close Ateneo, La Salle, and UP with their quirky tea puns: tea, Infinitea, Q-Tea, and more, this was the real beginning of the explosion. After those trends, coffee shops started to compete with milk tea stores. However, after all, Milk tea stores had a comparable atmosphere, a casual space that permitted tourists to remain for lengthy periods of time-perfect for the student to complete with a journal or friends to hang out. The considerable amount of learners entering the trend, purchasing milk tea as both a caffeinated pick-me-up and a sweet treat, made this milk tea possible (Jasper C, 2019).

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Exploring Bubble Tea: Past, Present, Future Milk tea began from Taiwan during the '80s, yet its beginnings are misty. Albeit a few tea organizations guarantee to have made these chewy custard balls, two shops stand apart from the group: Chun Shui Tang in Taichung City and Hanlin Teahouse in Tainan City. Chun Shui Tang was one of Taiwan's head foundations for creating the dark froth tea in 1983. The shop's originator, Liu Han-Chieh, thought of serving Chinese tea cold in the wake of visiting Japan - where he saw espresso served cold. In 1988, Liu's item improvement supervisor, Lin Hsiu Hui, inadvertently thought of air pocket tea when she blended a Taiwanese pastry called "fen yuan," an improved dessert, into her Assam milk tea. The other birthplace hypothesis is from the Hanlin Teahouse in Tainan City. The retailer, Tu Tsong He, made air pocket tea in 1986 by including white "fen yuan" to make the presence of pearls - which is as far as anyone knows why the beverage is likewise called pearl tea. Be that as it may, Hanlin inevitably changed the white custard balls to dark, making the present-day bubble tea drink.

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Both bistros went to court over the production of air pocket tea, yet neither had a trademark or patent over the famous beverage. When the 90s tagged along, numerous other coffeehouses started adding bubble tea to their menu. In the late 90's the programmed fixing machine was introduced, merchants started supplanting the conventional top with another fixed spread - making bubble tea what it is today as one of Taiwan's most outstanding staples (Bossen, 2017). Need for More Study Even though Milk tea is an international trend in the food and beverage industry, the study of localizing the subject Mati has not yet been established. Thus, this study would be the one to localize the study so that the possibility of franchising in Mati City would be addressed. This study would be presenting ideas, methods, and principles with regards to ChaTime in the City of Mati and its effect on the people. With this study that the people of the City of Mati can understand, the possibility of franchising a Milk Tea Business for the city will be determined.

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CHAPTER III Research Methodology This chapter describes and discusses how the researchers will gather the necessary data and information that will be used in the entire study. It describes who will be the respondents and focus of the research. This also shows the procedure of source of data and methods of collecting data. This chapter will also discuss the type of research, research design, and the research locale where the study will be conducted, data collection procedure and the plan for data analysis Research Design The survey research design has two necessary characteristics. First, the variables of interest square measure measured mistreatment self-reports; in essence, survey researchers raise their participants (who square measure typically referred to as respondents in the survey research) to report directly on their thoughts, feelings, and behaviors. Second, considerable attention paid to the difficulty of sampling. Particularly, survey researchers have an excellent preference for large random samples as a result of the supply of the foremost correct estimates of what is right within the population. Survey analysis could also be the sole approach in psychological science within which sampling is habitually used (Press books, 2019).

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This study is quantitative since the research question will seek to answer each question that leads to numerical data. The feasibility study will use a survey type of research design. The feasibility study will use a survey type of research design. Survey research is a quantitative method wherein the researcher poses a set of predetermined questions to a group of randomly chosen individuals. The philosophy included the examination of the view of the respondents about Cha Time being franchised in the City of Mati. The survey enables the researcher to reach many participants for the feasibility study if necessary, which ensures a much precise sample which to conclude. One of its strengths is its cost-effectiveness, reliability, generalizability and versatility. The concealment of surveys permits folks to feel a lot of truthful with their responses. To urge the correct information, the participants must work straightforward as possible with their answers. It is a very valuable tool when it comes to assessing opinions and trends. Even on a low scale, like the government or small businesses, judging opinions with rigorously designed surveys will dramatically change ways. Televisions, including chat-shows and newspapers, square measure sometimes jam-packed with facts and figures gleaned from surveys (Explorable, 2019). Unbiased survey information can be collected, and reasonable choices can be developed based on analyzed outcomes. By evaluating outcomes, the researcher can address topics of importance instead of wasting time and valuable resources on fields of little or no interest.

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The research design utilized for this investigation is the face-to-face survey method which is a way to deal with subjective research that centers around the shared characteristic of a lived involvement inside the target area. Researching the target area would help the researchers determine the respondent's insights and might also reveal discontentment towards the franchise. The sole purpose of conducting an accurate and purposeful face-to-face survey is to explore the responses of the people to gather more and more in-depth info. A face-to-face survey, also known as a personal interview survey, is used to review the answers of the respondents and to observe the behavior of the respondents, either individually or as a group. However, typically no info is given on wherever this info comes from or what the researchers asked their respondents. A survey square measures still a reliable tool and can be a potent research tool. Every single part of the survey should refer back to the modern style, or it will be fatally blemished. As long as the researchers designed the inquiry well and are ready to be self-critical, the researcher would still acquire an appropriate illustration of opinion. If the study is too broad, the researchers will have to ask too many questions. If too narrow, the researcher will not be assessing the study thoroughly enough.

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The Sample The purpose of the study is to determine if the said business will likely to be viable as a growing industry here in the city, therefore, the data required to be collected in this study are more likely the locals of the city where the business will operate. Out of all the population of Mati City, the researchers will only cater to 100 participants for the survey and held at the Baywalk Park of Mati City premises. Knowing the Baywalk Park area of Mati City, it is where people hang out due to a lot of gimmicks and stalls; thus, occupants in the area are the most affected or can benefit from the services the business will offer. Furthermore, the business will be structured and built in the same area; thus, it might contribute to the efficiency of the business promotion soon. Moreover, it is optimistic to say that 100 participants will be gathering at a time because of students, teachers, and other passersby that hangout and choose to stay in the Baywalk premises and is in higher number – even higher than 100. Hence, the possibility of being unable to gather 100 survey answers from people is at low risk. Survey research is a process of surveying several respondents with the use of a survey questionnaire (QuestionPro, 2019). Hence, it is the responsibility of the researchers to generate a survey questionnaire ahead of time in order to satisfy their need for answers regarding the possible franchise of Cha time business in Mati City premises. Correctly, the face to face survey will be used to gather information rapidly. The response rate of this method quite fast compared to the other types of research (QuestionPro, 2019).

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Moreover, the researchers will use non-probability sampling as a method of sampling technique for the research. A non-probability sampling is a sampling technique wherein the researchers are to decide what sample size will be in use. This sampling method does not give all the population the chance to be chosen since it is all up to the researchers to decide whom to survey and gather the data (QuestionPro, 2019). Hence, the sampling technique to be used does not give every member of the population to be one of the respondents of the survey. Sources of Data Normally the researchers can acquire records from two sources specifically essential and secondary. Data gathered via appreciation or questionnaire evaluation in an attribute putting are illustrations of data bought in an uncontrolled situation. Secondary information is the records acquired from non-compulsory sources like magazines, books, documents, journals, reports, the internet and more. The chart below describes the waft of the sources of statistics collection. Primary records will be the records that you accumulate particularly with the end intention of your lookup venture. Leverage of Primary records is that it is especially custom-made to your evaluation needs. A disadvantage is that it is pricey to get preserve of. Primary facts are otherwise called uncooked information; the information gathered from the first supply in a controlled or an uncontrolled situation.

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The researchers can ruin the sources of secondary data into internal as properly as external sources. Inner sources incorporate information that exists and is stored in your organization. External facts refer to the statistics that are gathered by using different persons or associations from your association’s outer environment (Studios Guy, 2019). Examples of inner sources of data include, but are not restricted only to, the following: 1. Statement of the profit and loss 2. Balance sheets 3. Sales figures 4. Inventory records 5. Previous marketing studies If the secondary data you have gathered from internal sources is not sufficient, you can turn to outside sources of data collection, some outside sources of data collection include: 1. Universities 2. Government sources 3. Foundations 4. Media, including telecast, print, and Internet

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5. Trade, business and expert affiliations 6. Corporate filings 7. Commercial information administrations, which are organizations that find the data for you. The Instruments The instruments to be used will be face to face survey method and non-probability sampling technique to earn accurate data from the respondents. Face to face survey method used when there is a specific target of the population involved, which have the purpose of deepening down understanding of the data gathered and becomes more specific (Explorable, 2019). It is an advantage to explore more of the people’s opinions and views about the research to develop a more specific data and also to observe the behavior of the respondents (if needed) held individually or in groups (Explorable, 2019). Thus, through this form of survey method, the researchers may be able to find specific and accurate data from the respondents. Moreover, with the help of non-probability sampling technique, precisely, convenience sampling technique, the researchers will gather information from different sectors of the society present in that location at the time they will hold their survey. Students, teachers, and other forms of professional personalities will choose following the chances, to survey the following sampling method. Convenience sampling technique is under the non-probability sampling technique and defined with gathering information

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with the population or respondents which are accessible to the researchers - respondents who are easy to locate and survey are for use in gathering the data needed (QuestionPro, 2019). Relating the two instruments to be used in the research, face to face survey interview will lead the researchers to find specific data with regards to the approach of the population to franchising Cha time business in Mati City premises, giving them more ideas and insights on what the majority of the population, represented by the sample size decided by the researchers. Furthermore, the convenience sampling technique will ease the burden of the researchers to gain information and leads to finding reliable and credible respondents. Data Collection Procedure The vital part of this feasibility study is the gathering of data and where the researchers begin to convey the survey to the randomly chosen respondents with regards to the study. The researcher aims to describe and explain the features of the subject involved in the feasibility study. Survey research is a quantitative method wherein the researcher poses a set of predetermined questions to a group of randomly chosen individuals. Survey research methods are derived on the idea of 2 vital factors: Survey analysis tool and time concerned for conducting analysis. There are three primary surveys of conducting survey research: Online/ Email-Online, Phone-Survey, and Faceto-face- survey research (Question Pro, 2019).

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The type of survey analysis used would be face-to-face survey analysis. In things wherever there is an advanced drawback to resolve, face-to-face survey analysis will be conducted. The response rate for this methodology is that the highest, however, it will be very dearly-won. This method will help the researchers gain some general details about the place of interest which is Mati City and its population to help prepare for a more focused, in-depth study using time-intensive methods such as in-depth interviews. No other research method can provide this extensive capability, which ensures a more precise sample used to gather targeted results in which to draw conclusions and make crucial decisions. By conducting a face-to-face survey research, the researchers can ask multiple survey questions, as well as collect data from the chosen individuals and analyze the collected data to produce numerical results. The researchers will present the letters to the respondents to formally request their authorization, by responding in this survey and to guarantee that their answer is confidentiality. The agreement letter encloses some critical insights regarding the study and the demand for their interest. The researchers will guarantee the interest of the chosen respondents, the concluding quantity of the respondents and date on when to lead the survey. In choosing the devices and finishing the information gathering, the researchers will now visit the general population that is under the feasibility study, taking consent from the respondents for gathering vital information. On the planned day, the researchers will meet the respondents. In this manner, the agents will talk about in insight concerning the study with a portion of the ChaTime franchising in the City of Mati and

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will clarify the nature and motivation behind the conducted survey. This survey will exploit the interviews. The randomly picked respondents are the ones who will answer the study polls. Discernment and documentation pursue while the respondents are giving their response. The researchers will lead an inside and out perception of the question to guarantee the precision of the appropriate responses. At the point when the respondents wrap up the overview interviews, the information will be gathered by the researchers and will be submitted to the exploration researchers remembering the destinations of the examination. Thus, disposition of being free and straight to the point, legitimate and genuine will be seen in endeavoring the inquiries. Research Locale The researchers will conduct the study in Mati City, Davao Oriental specifically in the Baywalk area of Mati City, where the proposed franchised will probably locate. Mati City is the 5th class City and the Capital of the Province of Davao Oriental. The word Mati comes from the Mandayan word Maa-ti which refers to the town's creek that quickly dries up even after heavy rain. Pioneer settlers were tribes Kalagan, Mandayan, and Maranao which carried strong Arabic and Indo-Malayan influences. The city has a population of 141,141 people, composed of 26 barangays and has a total land area of 682.00 km2.

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Furthermore, Mati celebrated its grand centennial in 2003 and was liberated in 1945 by the Allied Philippine Commonwealth troops of the 6th, 10th, 101st, 102nd, 103rd, 104th, 106th, 107th and 110th Infantry Division of the Philippine Commonwealth Army, 10th Infantry Regiment of the Philippine Constabulary and the Davaoeño guerrilla units. Moreover, the place of Mati has always been known as a beach destination and abundant tourist spots because of the different beautiful views in the City, with foreigners visiting the City to enjoy what it is beaches and tourist spots have offered. Thus, the proposed franchised will be located mainly at the vacant slot on the right side of the 7-Eleven Franchise in Quezon St., City of Mati, Davao Oriental.

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Location Map

Figure 6 location map

Figure 6.2 location map

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Respondents of the Study

Sampling Technique The sampling technique being used in this study is non-probability sampling, which is a testing method wherein the researcher chooses tests dependent on the emotional judgment of the researcher as opposed to arbitrary choice (Bock, 2019). Nonprobability sampling is most valuable for exploratory studies like a pilot overview (a review that is sent to a littler example contrasted with pre-decided example size). Nonprobability sampling is utilized in studies where it is unimaginable to expect to draw a random probability sampling because of time or cost contemplations (QuestionPro, 2019). Since the only qualification needed for a respondent to be credited is that he or she is a certified citizen if Mati City for the current year. Random Sampling is used since it is the sampling that doesn't require too many qualifications. To be more precise, Convenience non-probability sampling will be used in the study. Convenience sampling is a non-probability sampling strategy where tests are chosen from the populace simply because they are helpfully accessible to the specialist. These examples are chosen simply because they are anything but difficult to enroll and analyst didn't consider choosing a test that speaks to the whole population. Ideally, in research, it is great to test that speaks to the populace. Be that as it may, in some examination, the populace is too huge to even consider testing and think about the whole

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populace. This is one reason why specialists depend on comfort examining, which is the most widely recognized non-likelihood inspecting method, on account of its speed, costadequacy, and simplicity of accessibility of the example (QuestionPro, 2019). Data Treatment Data Preparation The primary phase of analyzing data is data readiness, where the point is to change over raw information into something significant and discernible. It incorporates four stages: Stage 1: Data Validation The reason for information approval is to discover. Beyond what many would consider possible, regardless of whether the information accumulation will be according to the pre-set measures and with no inclination. It is a four-advance procedure, which incorporates ● Fraud, to gather whether every respondent is meet or not. ● Screening, to ensure that respondents are in accordance with the examination criteria. ● There will be a system to check whether the information gathering method correct. ● Completeness, to guarantee that the questioner asked the respondent every one of the inquiries, as opposed to only a couple of required ones.

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Stage 2: Data Editing Ordinarily, enormous informational includes errors. For instance, respondents may fill fields mistakenly or skip them unintentionally. To ensure that there are no such mistakes, the specialist should lead basic information checks, check for exceptions, and alter the raw research information to recognize and get out any information focuses that may hamper the exactness of the outcomes. Stage 3: Data Coding It is one of the most significant steps in information arrangement. It includes creating a loop among the responses to generate themes from it. There will be groupings according to the category (Bhatia, 2018). Quantitative Data Analysis Methods After this means, the information is prepared for the examination. Descriptive statistics will be used by the researchers to analyze the collected data. It enables to encapsulate the information and discovers designs. One of the generally utilized expressive insights Percentage, it is used to express how esteem or gathering of respondents inside the information identifies with a bigger gathering of respondents (Bhatia, 2018). Through this, the researchers may know whether Chatime is feasible in Mati or not.

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