FRANCHISING YOU CAN DO IT YOURSELF
“Becoming a franchisor will become the buzz word.” According to Taki, the wave of foreign franchisors coming to the Arab world has ended, but that of the young generation of Arabs turning into concept creators and franchisors is growing larger. Any hospitality concept could be franchised. “Franchising is a tool to enable businesses to expand without capital investment, and relying solely upon the brilliancy of the concept,” he said. A concept can be franchised after one year of operation if it is innovative and has had proper accounts and clean books. “Franchising has been tailor-made for Lebanese 100 percent and 70 percent for Arabs. We are traders by nature,” Taki said. doing it was stimulating. He came up with a bi-lingual four-manual kit, with guidelines about the operation, the essential training, how to deal and review products, and how to excel in service. His kit is applicable worldwide. “When we sell a Franchisor Kit, you will be ready to start franchising within 90 days. This kit will save entrepreneurs thousands of dollars of consultancy fees. The business owner will be able to create all of the requirements, and will meet his objective, which is to expand his business by becoming a franchisor." The Franchisor Kit trains and assists the franchisor in preparing the ‘Letter of Response’ to any inquiry regarding a franchise. The portfolio also includes a number of procedure documentation, such as the selection procedure documentation, the lead handling, and the lead database template among others. It will also help the franchisor mold his/her concept and create it, plus the steps to granting a franchise and the essential know-how for single and multiple franchises. Taki said that franchises are priced in numbers, taking into consideration investment, ROI, and brand equity among others. “You have to also take into consideration your projected sales,” he added. Small franchises can return their investment in 36 months, other bigger investments require no less than 48 months. For instance, for a normal middle-size restaurant franchise, the joining fee could be based on the smallest territory in the Gulf, which is Bahrain. It should be no less than USD 100,000 for ten years, which refers to USD 10,000 per year, or around USD 50 per day, he explains. Single franchises will be the best tool to expand. Single franchises are easier to handle and less risky. The kit will also guide the franchisor to the best ways to price his/her franchise based on a turnover analysis, including brand identity and intellectual property, in order to determine value of franchise and franchise feasibility. franchisor to understand all necessary legal documentation used to prepare the agreements. It also involves defining the franchisor-franchisee relationship, the disclosure document, as well as trade practices regulation, among other legal procedures required.
The Franchisor Kit includes four manuals. The first, which is the operating manual, helps the franchisor develop and prepare his/her operations model, to be used by the franchise, including the franchise cash flow management to assist and monitor performance of all franchisees. It also offers the franchisor a step-by-step training manual, with rotating tasks for the staff members. Two other manuals help the franchisor develop and implement his/ her product and service. All manuals come with checklists to ensure the process is organized. The franchisor will also benefit from the assistance of a 24/7 call center.
For those who thought about franchising but never considered hiring a consultant to advise them, they are now able to do it themselves at a lower cost.
president of the Arab Franchise Association, and Franchisor Kit sales manager, explains how franchising has gotten trendier and how it is turning into a main business development medium
The complete package costs USD 9,990. The sum is payable in installments. “It is priced at 20 percent of what it would have cost anywhere else. Anyone could have charged between USD 50,000 to USD 100,000,” Taki said.