FRANCHISE OPPORTUNITY: NETOPIA

Netopia has a developed and tested Internet Café system offered to potential investors via franchising. Under a franchising agreement, Netopia helps prospective franchisees evaluate the economic feasibility of chosen location for the branch, builds the branch on a turnkey and supports the franchisee with proprietary systems and management and technical skills. To date, it has more than 70 franchised stores nationwide.

NETOPIA LAUDED AT FRANCHISE AWARDS. Entrepreneur Philippines awarded Netopia Internet Café three major awards including the Best Local Franchise, the Fastest Growing Franchise and the Most Promising Franchise Awards during the Entrepreneur Philippines Franchise Awards 2008 held at the World Trade Center in Pasay City. Accepting the awards are Netopia president George H. Tan (center), Netopia chief operation officer Jose Maria A. Grau (left) and Netopia franchise and branch development manager Jack Christian L. Coson.

Netopia is a fast growing and multi-awarded franchising business. The Philippine Franchise Association (PFA) honored Netopia as the Most Promising Filipino Franchise for 2002 and the Outstanding Filipino Franchise of the Year for 2005. Entrepreneur Magazine recognized Netopia as the Fastest-Growing Franchise, the Most Promising Franchise, and the Best Local Franchise for 2008.

The estimated investment requirement for a 30-workstation size Netopia branch is about 2.60 million (may vary depending on location) as shown below:

1. Franchise Fee (for 3 years) : 300,000
2. Security Deposit (3 months) : 300,000
3. Leasehold Improvements : 600,000
4. Computers and Software : 1,300,000
5. Working Capital : 50,000
6. Permits, Taxes and Insurance : 50,000


All rates are VAT exclusive. Rates as of April 2006

Franchise Term: 3 years
Advertising Fund 1% of gross sales

The advantages of a Netopia franchise

• Use of an established brand name
• Use of the Netopia Online Billing System
• Use of a proven system of management and operation
• Avail of economy of scale
• Access to employee training and operational support
• Availability of technical consultation
• Benefit from continuous research and development
• Benefit from continuous improvement in products and services


Frequently Asked Questions (FAQ) in Netopia Franchising

1. Why would I choose to open a Netopia Internet Cafe?

a. Netopia Internet Café is the largest chain in the country. It is part of the PLDT group of companies. Being a part of a big group has its benefits.

b. Netopia is a subsidiary of ePLDT. It has a stable financial condition and shareholder support.

c. Netopia is a well known brand known for computer usage, digital printing and electronic loads.

d. Netopia has a tried and tested operating system including a proprietary billing system useful for controlling and improving branch operations.

e. Netopia has over 300,000 Click Card bearing members enjoying discounts and privileges from over 135 affiliated merchants.

f. Netopia offers discounted software licenses from Microsoft and others.

g. Many of our franchisees are profitable.

2. What is the term of the Netopia franchise?

The franchise runs for 3 years and is renewable for another 3 years.

3. Why pay a franchise fee?

The franchise fee defrays for costs spent by Netopia for the following:

• Site Evaluation and Feasibility Study
• Employee Training for Initial Staffing
• Use of Netopia Trademarks and Logos
• Franchise Kit

4. Aside from the franchise fee, what other fees do I have to pay Netopia?

• Architectural Design Fee (one time)
• Billing System (one time)
• Royalty (monthly)
• Advertising Fund (monthly)

5. Who will identify the potential site for a branch? What is an ideal site?

Generally, the prospective franchisee should identify a possible site for the branch. Sometimes Netopia will recommend a potential site whenever available.

An ideal location is about 40-70 square meters of space located in a high traffic commercial/residential area accessible to both pedestrians and motorists. Proximity to schools and residential areas is a plus.

6. How long will it take to recover my investment?

Return of investment varies significantly depending on sales performance, competition in the area, pricing and control of expenses. Netopia does not recommend the opening of a branch if the feasibility study does not allow the recovery of investment in 18 months or less. However, nothing is guaranteed.

7. How many people will I have to hire?

A typical Netopia branch operating for about 10 hours a day requires at least 3 employees: 1 Technician, 1 Cashier, and 1 Supervisor or Manager

8. I already own another franchise, can I still apply for a Netopia franchise?

Yes, provided that the other franchise does not directly compete with Netopia.

9. Who will provide the building plans? Who will do the construction?

A Netopia franchise is on a turnkey basis. This means Netopia will design, build and equip the branch to standard specifications. Upon turnover, the branch will be operational. All costs related to building the branch is part of the investment cost. However, mayor’s permit, insurance and tax registration should be done by the franchisee.

10. Is training for the franchisee and his employees provided?

Netopia will provide the franchisee, free of charge, with 4 weeks of hands-on training on the initial crew of the branch covering administrative, operational and marketing matters.

11. What are the responsibilities of a franchisee?

• To operate the business according to Netopia standards
• To provide the highest quality, reliability and efficiency of service to all customers
• To protect all proprietary materials and confidential information related to the franchise.
• To abide by all the terms of the franchise agreement including timely payment of royalties and other dues
• To submit all required reports accurately and on time
• To send employees to follow through trainings provided by Netopia

12. How long will it take to get a Netopia Internet café operating?

It will take about 3 months from site selection to the opening of the branch.


For Inquiries Call the Franchise and Branch Development Department
Tel. No. : 638-6742 loc. 218 / 119
Fax. Nos. : 6340618 / 6334181
Office Address : Unit 603 Centerpoint Building Garnet Rd. Cor. Julia Vargas Avenue Ortigas Center Pasig City
Email : franchise@netopia.ph
http://www.netopia.ph/

1 comment:

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