Ya Kun’s franchise program was developed in a way to enable the company to franchise its business properly and use the correct strategies and tools to manage and protect its IP. Just before the launch of the franchise system in 2001, the management of Ya Kun International felt that it should tap into the nostalgia the Ya Kun brand represented and provide every customer with the ambience of bygone days, but at the same time offer a modern, comfortable air-conditioned store to appeal to contemporary lifestyle. Prices at Ya Kun Café franchise locations had to remain affordable and cater to local tastes without duplicating the many Western-styled coffee franchise outlets.
The Ya Kun franchise package gives franchisees the rights to operate the Ya Kun Kaya Toast concept, use of Ya Kun’s distinctive identity and trademark, initial and ongoing support, free exchange of new ideas, research and development (R&D), marketing and public relations support and a steady supply of official Ya Kun products. Ya Kun’s franchise strategy proved to be successful, and it allowed it to expand rapidly and develop a wider market for its products. In September 2001, the first Ya Kun Café franchise outlet opened at Robinson Point in Singapore’s central business district. This initial franchise provided Ya Kun International with a lot of important feedback, which helped it to improve its franchise model and rapidly expand throughout Singapore and other foreign markets.
There have been over 500 domestic franchise applicants since 2001, and this is a testament to the success of the Ya Kun name and IP. While Ya Kun International has enjoyed this success, it decided to stop granting franchises in Singapore in 2004. The company has received much interest in its franchise system from countries such as Malaysia, Hong Kong, Thailand, India, China and Australia, but the company is in no immediate hurry to enter into franchise relationships in these markets. Mr. Loi believes that franchising is a long-term relationship similar to a marriage, and thus the company would rather be careful in choosing the right franchising partners in order to ensure the viability of the company instead of rushing into many franchise agreements in many different countries.