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.
Monday, March 17, 2014
Island TEFL, Phuket
Phuket Established English Teaching TEFL Business For Sale - Kamala Beach
The only business currently up for sale is the one above, so this is the one we will review first. In fact, it is IslandTEFL, which is well known on the EFL circuit and has been around for over 10 years. It is currently owned by Philip Dunne (aka Phillip Crabb), who is based in the USA, and has sold franchises in various locations in Thailand over the last few years. In our opinion, however, IslandTEFL, Phuket is considerably overvalued at $67,500. We will give our reasons below.
Any buyer needs to first grasp what he or she is really buying. In this case, it is basically rights to a web domain, use of the name and logo, and a teaching manual. Plus, of course, Philip Dunne’s marketing skills, which it must be conceded are certainly formidable.
However, there are many shortcomings. Firstly, IslandTEFL is not actually a registered company in Thailand, and this means the burden will fall on you, the buyer, to register, which is a complicated and time consuming process. If IslandTEFL was already registered, you could register as a branch, in which case you may only need to have one Thai employee, as advertised. However, if you are registering from scratch, the stipulations are actually that you are required to have four Thai employees. Secondly, the TEFL scene is highly seasonal in that numbers are high in April and October, immediately prior to the beginning of school term time, but low for much of the rest of the year. Do not expect to be running fully packed courses all the year round.
The premises are another important area to look at. You need to establish whether they are already there or exist merely as a possibility. There is a good possibility that they are not up and running at present and may fall well below your expectations, which is why it is essential that you check them first. The IslandTEFL website has evolved over several years, and the photos may give an impression of something different from what is actually there. You may envision a company with an HQ, secretaries, accountants and rows of computers. In reality, Island TEFL is a small company with no fixed physical base, basically just Philip Dunne working from a room in San Diego (last known location).
The reason we feel that the price being asked for is too high is because the onus will fall upon you in almost every department. There are also several risk factors if you purchase from Philip Dunne. Firstly, will you really be your own boss? He will almost certainly keep a controlling stake as the franchisor, which may mean the he will drive you from behind. Secondly, he has a reputation for adhering rigidly to contracts, so that if at any point you become "in breach of contract", you risk losing all of your money. Why put yourself in that position when you will be doing all the donkey work and could be completely independent anyway (see below)?
It is also important to note that Thailand is largely unregulated, and that if you did have any dispute, any legal process would probably be long and laborious, with the outcome difficult to enforce. That’s why it’s important to take particular care doing any deal involving Thailand. A "what if things go wrong?" attitude is essential, particularly with such a large sum at stake.
So what we suggest instead is that you simply set up on your own and be your own boss in the true sense of the term. Our recommended course would be to go to Thailand, find some premises, register your company, design your own curriculum, set up your own website and link up with a placement agency. None of these things are difficult to do, particularly if you have a genuine EFL background. In fact, we will be happy to give you advice if you need it. Even the advertising is relatively straightforward. Why pay all that money for something you can do yourself?
Please also read our previous blog and ground advice. Always meet the seller personally face to face. Skype is not an adequate substitute, in our opinion. And make sure that you have checked any contract you are about to sign properly with a lawyer. Make sure there are no ambiguities and that it is evenly balanced. Also, how are disagreements resolved? What programmes can you do and not do? Finally, ask to see a balance sheet for the previous year. Any company that does not offer you that must be considered dubious.
To sum up, we are not recommending Island TEFL at that price on the evidence currently available. Why risk what may be half or even all of your life savings on such a venture? We think it best simply to set up independently. However, if you do decide to buy, in our opinion, Island TEFL Phuket is not worth more than $10,000. We would not risk more than that on it. This, however, is just our personal view.
We welcome comments and questions from anyone who has or would like more information about IslandTEFL.
Good luck whatever you do.
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.
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Friday, March 7, 2014
TEFL today
Hello Everyone,
Recently the TEFL industry has grown considerably and there are now several schools operating offering TEFL courses to people who want to teach English abroad. Many are located in highly attractive exotic destinations. TEFL, incidentally, stands for Teaching English as a Foreign language.
The aim of this blog is simply to give an objective assessment of TEFL businesses being offered either for sale or as franchises, as they appear, so that potential buyers don't get scammed. Doing business on the internet is always very risky, so we have two ground recommendations that we always make. Firstly, try to meet the person you are buying from in the flesh, and secondly, always have any contract you sign checked by a lawyer before you sign or hand over any money. That way you have a better chance of not getting scammed. The TEFL industry is largely unregulated and, unfortunately, there are several highly unscrupulous individuals out there. So do be on you guard.
Good luck
Jill Franklyn
Recently the TEFL industry has grown considerably and there are now several schools operating offering TEFL courses to people who want to teach English abroad. Many are located in highly attractive exotic destinations. TEFL, incidentally, stands for Teaching English as a Foreign language.
The aim of this blog is simply to give an objective assessment of TEFL businesses being offered either for sale or as franchises, as they appear, so that potential buyers don't get scammed. Doing business on the internet is always very risky, so we have two ground recommendations that we always make. Firstly, try to meet the person you are buying from in the flesh, and secondly, always have any contract you sign checked by a lawyer before you sign or hand over any money. That way you have a better chance of not getting scammed. The TEFL industry is largely unregulated and, unfortunately, there are several highly unscrupulous individuals out there. So do be on you guard.
Good luck
Jill Franklyn
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