Bangkok Established English Teaching TEFL Business For Sale
We have noticed that Island TEFL, Bangkok is up for sale now http://thailand.businessesforsale.com/thai/Bangkok-Established-English-Teaching-TEFL-Business-For-Sale.aspx. Previously the Phuket branch was being offered. We don't know whether that one has been sold or not, but if so, we certainly wish the new buyer every success.
Our advice here is very similar to our advice for the Phuket branch, in that, firstly, we think it is considerably overpriced at $59,500 and that therefore we recommend any buyer to proceed with due caution. First please read our ground advice and also the earlier Island TEFL, Phuket post.
One additional factor to the Phuket sale that we feel is of concern here is the use of the word "established" in the advert. Of course, much depends on your definition of that word. Island TEFL is without doubt an established name, particularly on the internet. However, their Bangkok branch does not seem to live up to that description, in our opinion, mainly because of its lack of any consistent physical presence. Over the last few years, service there has been highly erratic, with at least three different locations being used, Thonburi, Victory Monument and now Silom. Remember, Island TEFl has no permanent physical base or HQ in Thailand and is not actually a registered company as far as we know. According to our definition, that does not qualify as being "established". But it is up to you, the buyer, to do more research on the history and current situation there.
Please don't hesitate to contact us if you have any questions.
We're hoping to put up a review of another language school shortly.
Good luck,
Jill Franklyn
Disclaimer: Please note that the above comments are simply the views
and opinions of "TEFL Businesses" and in no way represent
incontrovertible truths. All information should be checked and verified
by the reader before being acted upon. We also take no responsibility
for any comments posted, other than that any comment using foul or
abusive language will be deleted.
Tuesday, April 22, 2014
Friday, April 4, 2014
Island TEFL, Koh Phangan
We noticed that Island TEFL recently made a sale to someone in Koh Pha Ngan. See the website - http://thailand.businessforsale.com/buy/koh-phangan-established-tefl-training-opportunity-business-for-sale. We wish the new "owner" or franchisee the best of luck.
What concerns us about this one is the reasons Mr. Dunne gave for selling, being that "Island TEFL has exercised its right to terminate its business agreement with the previous "owner" of Island TEFL Koh Phangan because of breach of contract". In our view this indicates the importance of research before making a deal. We would want to know more about that before buying. The full details, in fact. There are several worrying features. Firstly, if he has terminated before he may well do it again. In fact, Philip Dunne has a well known track record of doing precisely this. So, as suggested in our previous blog, why risk putting yourself in this position when in reality it is quite possible that you will function as no more than branch manager anyway. Effectively, you may be giving someone $20,000 simply to be your boss. And a boss who may terminate you at any time and relieve you of all of your investment. The use of the word "owner" in inverted commas is also interesting in that it suggests that you will never be the owner in the true sense of the word. Philip Dunne is unlikely to relinquish his claim to that title.
On the subject of breach of contract and termination, it can never be just at the whim of the owner. An owner may feel omnipotent within his own company. Nevertheless he still has to abide by the law. Any breach of contract or termination notice needs to be ratified by a lawyer, and you have the right to appeal against it. This is why it's important to have the contract checked by a lawyer beforehand and also for your lawyer to establish communication with the owner's lawyer too. You need to be certain that he has a lawyer, particularly if he's living abroad, as in the case of Philip Dunne. Remember, Island TEFL has no established or fixed headquarters or base in Thailand. As far as we can ascertain it is not a registered company in Thailand.
However, this all brings us back to the point we made in our previous blog, that in Thailand any legal action will be laborious, expensive with the outcome difficult to enforce, which is why we do not recommend the franchise approach to doing business in Thailand. We would only recommend a full purchase lock, stock and barrel and, at that, only if it's a properly established company with a physical base. If the seller is still keeping a controlling interest, we would suggest setting up independently as a better option.
We hope this is helpful to potential buyers.
Good luck,
Mark Gilchrist (co-founder, TEFL Businesses)
Disclaimer: Please note that the above comments are simply the views and opinions of "TEFL Businesses" and in no way represent incontrovertible truths. All information should be checked and verified by the reader before being acted upon. We also take no responsibility for any comments posted, other than that any comment using foul or abusive language will be deleted.
What concerns us about this one is the reasons Mr. Dunne gave for selling, being that "Island TEFL has exercised its right to terminate its business agreement with the previous "owner" of Island TEFL Koh Phangan because of breach of contract". In our view this indicates the importance of research before making a deal. We would want to know more about that before buying. The full details, in fact. There are several worrying features. Firstly, if he has terminated before he may well do it again. In fact, Philip Dunne has a well known track record of doing precisely this. So, as suggested in our previous blog, why risk putting yourself in this position when in reality it is quite possible that you will function as no more than branch manager anyway. Effectively, you may be giving someone $20,000 simply to be your boss. And a boss who may terminate you at any time and relieve you of all of your investment. The use of the word "owner" in inverted commas is also interesting in that it suggests that you will never be the owner in the true sense of the word. Philip Dunne is unlikely to relinquish his claim to that title.
On the subject of breach of contract and termination, it can never be just at the whim of the owner. An owner may feel omnipotent within his own company. Nevertheless he still has to abide by the law. Any breach of contract or termination notice needs to be ratified by a lawyer, and you have the right to appeal against it. This is why it's important to have the contract checked by a lawyer beforehand and also for your lawyer to establish communication with the owner's lawyer too. You need to be certain that he has a lawyer, particularly if he's living abroad, as in the case of Philip Dunne. Remember, Island TEFL has no established or fixed headquarters or base in Thailand. As far as we can ascertain it is not a registered company in Thailand.
However, this all brings us back to the point we made in our previous blog, that in Thailand any legal action will be laborious, expensive with the outcome difficult to enforce, which is why we do not recommend the franchise approach to doing business in Thailand. We would only recommend a full purchase lock, stock and barrel and, at that, only if it's a properly established company with a physical base. If the seller is still keeping a controlling interest, we would suggest setting up independently as a better option.
We hope this is helpful to potential buyers.
Good luck,
Mark Gilchrist (co-founder, TEFL Businesses)
Disclaimer: Please note that the above comments are simply the views and opinions of "TEFL Businesses" and in no way represent incontrovertible truths. All information should be checked and verified by the reader before being acted upon. We also take no responsibility for any comments posted, other than that any comment using foul or abusive language will be deleted.
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