KINDERGOLF was expanding fast, but it wanted to do so faster.
About three years ago, the firm, which teaches golf to children between the ages of two and seven, chose the franchising route to take its brand overseas.
The franchising option - licensing other entrepreneurs to use a firm’s business template - is cheaper than pouring its own cash into expansion.
Back in 2004, revenues at the homegrown firm were growing at 20 per cent a year thanks to a healthy demand for golf lessons.
Founder and chief executive Donna Lee was keen on the franchising concept so the firm took the plunge with a United Square outlet, then went regional through franchised outlets in Indonesia and Malaysia.
‘In terms of expansion, it reduces your capital outlay,’ she says, as each franchisee pays their own way.
Typically, a franchised outlet will use the branding and products of the original business. The franchisor receives franchise fees from them.
KinderLand had three self-owned outlets before franchising but now has 12 outlets - four self-owned and eight franchised.
Next year, it will add a franchised outlet in California, said Ms Lee, whose business has been growing by 30 per cent to 40 per cent a year since it embraced franchising.
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