According to Entrepreneur Magazine, franchising provides a success rate of more than 90%, making it the lowest failure rate in any type of business. This proves why the franchise market in the Middle East is worth 33 billion USD, with an annual growing rate of 26%; wherein Fast Food and Retail sectors are accountable for more than 60%.
What a franchisor has to know before selecting a franchisee?
It is essential for a franchisor or brand owner to first define their criteria for a prospective franchisee in terms of qualifications, previous experience, and financial resources.
How can a franchisor reach their prospective franchisees?
It is imperative for the franchisor to obtain all the exposure they can get through marketing, advertisement and press releases. Most brand owners also participate in Trade Shows, where they can meet a good number of potential prospects as most investors attending a trade show are franchise buyers.
What is in it for the franchisee?
Franchisees and investors who acquired a franchise benefit from cutting costs and time from doing market research and testing, since the products and services have already been established; not to mention saving huge amount of funds on marketing and advertising. Supplies, equipment, training and instructions are all provided by the franchisors making it favourable for the franchisees and investors to just focus on the operation of the franchise.
Successful brand owners know that their company needs to expand in order to increase profits and reach new customers. On the other hand, investors who buy a franchise double their chances of surviving as a business owner and these chances could increase by 95% if the right kind of franchise is selected. Franchising provides a platform for both the brand owners and the investors to expand and succeed in business.
Source:
Entrepreneur Magazine
US Chamber of Commerce
Francorp Middle East
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