Franchising has been around in the Middle East since the 1960s when several American and French brands started building their presence in the region. These cash-rich companies wanting to expand their business portfolio across new sectors provide a perfect launch pad to break in the growing Middle East market. Gaurav Marya, managing director, Franchise Middle East, said there is tremendous interest in franchising in the Gulf. It offers a key platform for brands looking to make forays into the region without significant risk or capital investment. According to Marya, one-third of the interest in franchising came from Emirati investors at the annual Franchise UAE exhibition. Over 700 investors, especially women entrepreneurs who engaged in one-on-one meetings with representatives from 50 brands covering diverse business segments, visit the event annually. The booming Middle East franchising market is currently growing at 27% annually, and presents unparalleled opportunities for growth because of the presence of a large number of high net worth individuals and multi-ethnic populations with high disposable incomes, Marya said. Franchise UAE 2011 offers opportunities to partner with brands such as Medicine Shoppe, British Orchard, Kim Chicken, Bobavoom, Gloria Jeans Coffee, Instant Skin by Precise Group, Bite Rite by NMC Group, Pizza Pizza from Turkey, La Feasta, Perfume Station, Remida Spa from Italy and many more.
According to experts, franchise opportunities have been traditionally dominated by fast food and retail segments, particularly fashion, with almost 60% of the total market. Franchising opportunities are available in several business sectors, including education, apparel, laundry and dry cleaning services, restaurants, mail and package services, printing and convenience stores."Franchising is a partnership between the franchisee and the franchisor," said Ian Ohan, Naked Pizza's GCC franchisee at an event at Shelter Dubai. Franchisees should be sure to look for a franchise that will work well in the region. "I see a lot of people picking up franchises without looking at the requirements," Ohan said. "They are asking 'what can I get?' not 'what will work here?'" Another key question to ask oneself when selecting a franchise is: 'Why do I need the brand?' Franchisors must also be careful in who they select. "Franchisors who trust you just because you live in the region or have enough money aren't the kind of franchises that you want to be partnering with," he said. "Successful franchisees need business experience. They need to know how to run a restaurant business," Ohan added. The second tip is to know how to operate. "You can't take on a franchise and not be active in your business. The franchisor doesn't run the business: you do. You get the flag, a product and a system, but beyond that it is yours. Your job is to operate and execute," said Ohan. Unlike an independent small business, franchisees are not as flexible in determining the direction of growth of their product; however, a good franchisor will listen to your ideas and work with you to execute them. Most big name brands will have franchising opportunities listed on their websites if they wish to expand. Some companies will offer single unit or multi-unit franchising opportunities in the UAE or perhaps across the region based on their master franchisor license. Franchising combines the entrepreneurial drive of a small businessperson with the experience and resources of a larger company. As a franchise partner, you're given access to years of business experience and a proven concept. You will sell a service that is accepted in many markets, and you are associated with a brand name that has international recognition. "Today, people want quality, they want service, and they want to be treated like people," he said. Part of getting that is through the proper employee training. "Our success is about developing our people," Ohan said. "Most senior people started off as drivers in the pizza business, and they moved up because the company gave them the chance." For those willing to put in the work, Ohan believes that there is a lot of opportunity. "In the past two years, the opportunity for smaller entrepreneurs in Dubai is a hundred times what it was five years ago," he said. "There is a market for businesses who are more dynamic and faster than older companies."
