The main business of the BB Net corp. is the provision of “Shop Support,” a comprehensive support scheme for small and medium-sized enterprises. For this purpose, the Company has established “Hanjo Nets,” B2B portal sites for individual market sectors whose members receive two categories of services: “Front Services,” which involve the provision of information while maintaining solid relationships with members; and “Back Services,” which meet the many needs common to all members through services such as the sale of food mat eri als and ingredients, planning and design of shops, and insurance and lease arrangements.
The FC development business is conducted as one of the “Back Services” offered within the scope of the “Shop Support” scheme. In this business, wholly owned subsidiary Wintegrator Inc. acquired the goodwill from Universal Food Co., Ltd. in March 2004 and then started FC development business through contracts with more than 20 franchising headquarters, as well as the FC platform business, planning and arranging services of franchisers' business presentation opportunities for franchisees.
While conducting these FC development businesses, the Company found that some of the franchisers that have entered into contracts with Wintegrator have expressed a strong desire to expand their franchise formats to China , especially the Shanghai area. The decision was thus made to establish a Hong Kong subsidiary and a Shanghai subsidiary through the Hong Kong subsidiary's investment so that the BB Net Group can extend supports to these clients in ent eri ng China .
Regarding the development of the restaurant franchising business in China, EAT & Co., which has a contract with Wintegrator, has opened a trial “ Osaka Osho” (Chinese food) restaurant in Hong Kong and established a subsidiary in Shanghai to develop its “ Yottekoya” ( Kyoto style street stall noodles) restaurant chains. In addition, Total Prosystem Co., Ltd . has stated its desire to begin operating a Korean cuisine restaurant chain in Shanghai under its “ An-nyon” brand. These and other developments demonstrate that there is actual demand of FC development business China that goes beyond the initial inquiry stage.
Further, when a study tour to learn about opportunities in Hong Kong and Shanghai was introduced in Wintegrator's information magazine “WIN'S”, more than 10 companies responded, including franchising headquarters, who are the magazine's main readers, as well as companies thinking about starting a franchising operation, which indicates that BB Net's China franchising business can quickly attract clients. In addition as the franchise formats planned for China are ones that BB Net has already been conducting and refining in Japan with excellent prospects, BB Net therefore believes that the FC business can grow over the coming years.
BB Net is planning on introducing its “Shop Support” scheme to China in the future. The Company will currently concentrate on assisting franchising headquarters' operations in China , while seeking the right opportunity to further enlarge its operations in this country. |
