How to unlock franchise potential in Nigeria

Chris Agabi The future of franchising in Nigeria is an optimistic one, according to a recent study funded by Policy development Facility Phase II (PDF II) and carried out by Franchise Business Development Services (FBDS) on the potential growth of the economy through franchising.

‘Unlocking the Potential of Franchising in Nigeria’ was the theme of the event which brought together stakeholders in the industry. 'Franchising has proven to be one of the most successful business models in recent years.

In both developed countries and emerging markets, franchising ensures business growth and encourages entrepreneurship and skills transfer' vanguard, experts say.

This holds true as the evidence from different countries has clearly shown that growth of the economy and job creation are dependent on the growth of its MSMEs.

According to Kari, Muhsin, a PR/Media Consultant and the MD/CEO buZZ Nigeria, due to the absence of adequate information and structure however, the option of Franchising is yet to have a strong hold despite its vast opportunities.

He noted that a few brands in the country have been able to successfully set up a franchise brands that has worked quite well such as Chicken Republic, Avis and Yoghurt Frenzy.

For many MSMEs, access to funding is the main bottleneck to expansion.

However, some good arrangements are already happening as can be seen in the example of the financial arrangement between FCMB and Baban Gona.