Dear Franchise Partners,
We would like to provide you with an update on the state of the Adakings UGMC franchise, the challenges we have faced, the progress made toward recovery, and our plans for the future.
We recognize that communication has been limited over the past few months, and we understand the concerns this may have raised. We appreciate your patience and continued trust as we work to restore operations and strengthen the business.
1. Why Updates Were Limited
The past few months have been challenging for the UGMC franchise due to market uncertainty, a temporary shutdown of operations, and the need to reassess the business.
During this period, we made a deliberate decision to prioritize addressing the underlying challenges and developing practical solutions before communicating extensively. Our intention was to provide meaningful updates backed by concrete progress rather than make promises without corresponding action.
In retrospect, we recognize the importance of maintaining regular communication even during difficult periods, and we appreciate your patience.
2. What We Have Done to Address the Challenges
To address the operational and financial difficulties, we took several decisive steps:
- Management and operational restructuring: We replaced the previous team following failures to comply with company guidelines and standard operating procedures (SOPs). These operational challenges contributed to a revenue decline of up to 80%.
- Temporary suspension of operations: Operations were suspended from June through August to allow us to reassess the business, address operational weaknesses, and develop a recovery strategy.
- Market research and reassessment: We conducted market research to better understand customer behaviour, identify the challenges affecting sales, and evaluate opportunities for sustainable growth.
- Asset replacement and recovery: We have replaced the majority of the items that were looted and have continued working to restore the business’s operating capacity.
These measures were necessary to stabilize the business and establish a stronger foundation for recovery.
3. Current State of the Business
We are encouraged by the progress made so far.
- Revenue recovery: Revenue has recovered to levels comparable to those recorded before the downturn.
- Growth in pickup orders: Pickup orders have increased by approximately 15% compared with previous months.
- Delivery operations: Delivery services have not yet resumed. This remains an important opportunity for the next phase of growth.
- Asset restoration: The majority of the looted items have been replaced, allowing us to restore much of the business’s operating capacity.
Although there is still work to be done, these developments indicate that the business is recovering and that the corrective measures are beginning to yield results.
4. Future Outlook and Growth Opportunities
Our focus is now on consolidating the recovery and unlocking new sources of revenue.
The UGMC franchise is positioned to serve tertiary students, nearby businesses, and other customers within the surrounding area. We see significant opportunities to expand our customer base through improved delivery services, targeted marketing, and stronger operational execution.
Based on our current assessment, resuming delivery operations could increase sales by at least 40%. This is a projection, and actual results will depend on customer demand, operational capacity, and effective execution.
Our priorities are to:
- Resume delivery operations in a sustainable and commercially viable manner.
- Expand our reach among nearby businesses and tertiary students.
- Strengthen compliance with company operating standards and SOPs.
- Improve customer acquisition, retention, and overall sales performance.
- Build a more resilient business capable of sustaining growth over the long term.
5. Payment Plan for the Guaranteed 50% Return
We understand that the return on your investment is a significant concern, and we want to provide clarity on our payment commitment.
Payments toward the agreed guaranteed return will begin in the first week of February 2027 and continue through the final week of March 2027.
Each franchisee is entitled to a guaranteed return equivalent to 50% of their original capital contribution. This means that the return payment will amount to half of the capital initially contributed by each franchisee.
This 50% return is guaranteed regardless of the business’s financial performance. Our commitment to franchise partners remains in place as we continue working to rebuild and strengthen the UGMC franchise.
Payments will be processed in the order in which the original capital contributions were received. Each franchisee will be notified privately of the relevant payment arrangements.
We recognize the importance of honouring this commitment and will keep franchise partners informed as the payment period approaches.
6. Our Commitment to Franchise Partners
We acknowledge the challenges experienced during this period and the concerns that limited communication may have created.
Our responsibility is to rebuild the business, strengthen its operations, and honour our commitments to our franchise partners. The recovery of revenue, growth in pickup orders, and restoration of key assets are encouraging steps, but we recognize that continued progress and accountability are essential.
Going forward, we are committed to providing more consistent updates on business performance, operational milestones, and the return-payment process.
Thank you for your patience and continued engagement with Adakings. We remain focused on rebuilding the UGMC franchise into a stronger and more sustainable business while honouring our commitments to every franchise partner.
Sincerely,
Management
Adakings Foods and Beverages Company