UAE Map

Interested in entering or expanding your franchise activity in the UAE market? This article sets out what you need to know:

Franchise Business in the United Arab Emirates…

When going out and about in downtown Dubai you will see a plethora of franchises such as KFC, McDonalds, Costa Coffee, Caffe Nero, and even Yo Sushi.

From a handmade gourmet burger kitchen restaurant through to RE/MAX or Keller Williams real estate agency and you can even find one of the gym franchisors in action for those seeking a workout!

Without doubt a franchise business model is highly accepted in Dubai but it does come with a need for specialised legal assistance, it is not as easy to terminate a franchise agreement as other regions and a franchisor should appoint someone with an element of caution when covering UAE or Gulf States

Although there is no one specific franchising law in Dubai, a range of civil and commercial laws apply depending on the terms of the contract. There are multiple laws which can apply to franchising relationships and these include:  Federal Law No. 18 of 1981 on the Organization of Commercial Agencies (as amended by Law No. 14 of 1998) and which was further amended by Law No. 13 of 2006.  Federal Law No. 5 of 1985 on Civil Transactions.  Federal Law No. 18 of 1993 on Commercial Transactions. 16 In addition to the above depending on the terms and conditions of the agreement other laws and regulations may also be relevant, including:  UAE intellectual property laws for trade-marks, copyright and patents.  Labor laws, especially, where a franchisor may second staff to the franchisee.  Local Municipality rules – in relation to business names and signage;  UAE general principles dealing with restraint of trade and assignment of the franchise back to the franchisor in the event of default.

 

The UAE maintains a position as the major trade and investment hub for a large geographic region, which includes not only the Middle East and North Africa, but also South Asia, Central Asia, and Sub-Saharan Africa. The country ranked 19th in the World Economic Forum’s 2013- 2014 Global Competitiveness Index, and 23rd on the World Bank’s 2013 Doing Business report, improvements of five and three places respectively from the previous year. Multinational companies cite the UAE’s political and economic stability, rapid population and GDP growth, efficient and fast growing capital markets, an absence of corporate and personal taxes, or any evidence of systematic corruption, as positive factors maintaining the UAE’s attractiveness to foreign investors, with inward FDI recording a 20% year-on-year increase to reach $12 billion, accounting for over 40% of the total inward FDI of the entire GCC.

With all the above you would expect laws to be more favourable to overseas investors and in my opinion they are not. It is a legal framework that in my opinion is skewed in favour of local nationals.

A Federal Companies Law applies to all commercial companies established in the UAE and to branch offices of foreign companies operating in the UAE. Companies established in the UAE are required to have a minimum of 51 percent UAE national ownership. Regardless, profits may be apportioned differently and often are negotiated at fixed amounts. Branch offices of foreign companies are required to have a national agent with 100% UAE national ownership unless the foreign company has established its office pursuant to an agreement with the federal or an emirate government. The new draft Companies Law, as reported by government media, is near final form and awaits the final determinations from the President before it is decreed and published in the national gazette. However, the revised draft has been under consideration for several years and there has been no guidance given as to how quickly the new law might be issued and implemented.

Foreign investors may purchase 108 of the 135 issues on the UAE stock markets, the Abu Dhabi Securities Market (ADX) and Dubai Financial Market (DFM). The remaining 27 issues are primarily those of government-related entities (GREs), such as the national telecommunications and oil companies. Companies on the exchanges are subject to the Federal Companies Law, thus foreign investors are allowed to own up to 49 percent of a company. However, some company by-laws prohibit foreign ownership, and others limit it to less than the legally allowable 49 percent, although several major companies raised their foreign ownership limits in 2013 in anticipation of an increase in foreign investment generated by announcements that ratings agencies MSCI and Standard & Poor’s would upgrade the UAE from “frontier” to “emerging” market status. The international financial crisis and foreign speculation contributed to significant declines in local equity valuations since 2008, but the markets have rebounded strongly in 2013. The Emirates Securities and Commodities Authority (SCA), the UAE’s regulator, is considering raising the minimum level of capital for brokerages. The Commercial Agencies Law provisions are collectively set out in Federal Law No. 18 of 1981 on the Organization of Commercial Agencies as amended by Federal Law No. 14 of 1988 (the Agency Law) and applies to all registered commercial agents. Federal Law No. 18 of 1993 (Commercial) and Federal Law No. 5 of 1985 (Civil Code) govern unregistered commercial agencies. The Commercial Agencies Law requires that foreign principals distribute their products in the UAE only through exclusive commercial agents that are either UAE nationals or companies wholly owned by UAE nationals. The foreign principal can appoint one agent for the entire UAE or for a particular emirate or group of emirates. The Ministry of Economy handles registration of commercial agents. It remains difficult, if not impossible, to sell in UAE markets without a local agent. Only UAE nationals or companies wholly owned by UAE nationals can register with the Ministry of Economy as local agents. The federal Industry Law stipulates that industrial projects must have 51 percent UAE national ownership. The law also requires that projects either be managed by a UAE national or have a board of directors with a majority of UAE nationals. Exemptions from the law are provided for projects related to extraction and refining of oil, natural gas, and other raw materials. Additionally, projects with a small capital investment or projects governed by special laws or agreements are exempt from the industry law.

The legislation for a franchisor to consider in the UAE is Federal Law No. 18 of 1981 on the Organisation of Commercial Agencies (as amended by Federal Law No. 14 of 1988, and further amended by Federal Law No. 13 of 2006 and Federal Law No. 2 of 2010)

The Commercial Agencies Law

The UAE Commercial Agencies Law is applied to both agency agreements that cover franchisor/franchisee relationships, manufacturer’s agency agreements, distributors, dealers and self employed sales agency relationships.

As a franchisor you must seek specialised legal advice as this law will only apply to a contract that are registered with the UAE Ministry for the economy.

Any such contract will need to qualify for registration at Ministry level by many set policies including but not limited to a franchisee being a UAE national or a company/partnership 100% owned by UAE nationals.

Unlike EU agreements this franchise agreement must grant exclusivity over the region or its nominated territory being all or a part of the UAE.

To be enforceable a franchise agreement must be notarized and for some franchisees it is a minefield.

A franchise agreement not registered with the Ministry is legally not valid.  That is one opinion but many franchise agreements in the UAE are entered into between foreign franchisors and local limited liability companies and these are regularly companies that have a 49% foreign shareholding so  not 100% owned by UAE nationals.

If a non-exclusive agreement is set it will not qualify for Ministry registration.

Some say that franchise agreements which may meet the qualifying criteria for registration with the Ministry do not have to be registered although I say be prepared for your franchisee getting through the honeymoon period and then heading off to a UAE courtroom seeking a court to order a post completion registration and therefore gaining the fuller protection as offered by agreements with Ministry registration.

The UAE remains the UK’s largest market in the Middle East and the 12th largest globally by value in trade in goods and services. It provides access to the wider region including Africa and Asia, and a great deal of investment into the UK. However, despite the long association between the UK and the UAE, the UK has lost share of the expanding market, especially to emerging economies. A number of British companies who have been established in the UAE for over 70 years are now having to review and adapt the way they operate in this market in order to deliver in partnership with a UAE entity a “double bottom line” of profitability, capability and capacity building, if they are to maintain their commercial presence in the UAE long-term. Abu Dhabi and Dubai are very different places in which to do business. Dubai, with its “free zones”, world class transport links, and more liberal approach to trade and investment has been able to attract a vast range of UK companies, including many SMEs, and has successfully built an international financial centre in the Dubai International Finance Centre (DIFC) which is heavily influenced by the City and which operates its Courts under English Common Law. Abu Dhabi is more conservative and possesses most of the UAE’s oil and consequently its wealth. But a younger generation of leaders is now determined to diversify Abu Dhabi’s economy, not least for long term economic security. As well as competition from the Europeans and North American companies, UK companies will face increasing and aggressive competition from the high growth Asian economies such as Korea and China. The UAE can be a demanding and at times frustrating market in which to do business. But its strategic position and the vision of the UAE leadership make it one of the best places to do business in the Gulf. If UK companies are prepared to be here for the long-term, to partner with local UAE companies, to be versatile in their approach to doing business in the different Emirates and to contribute to the development of the UAE and its people in order to meet their vision for the future, then the prospects are good.

Frankly the British franchisors have allowed the UAE franchise market to become dominated by American brands and French brands.

As you may expect food & beverage battle it out with retail retail franchised brands. The Apart from this many Asian franchisors are entering the market.

We believe the next trend for this warm market is the smaller franchisee and area developer franchising from the UK is picking up.

As you can see franchise legislation, comes under general contract/commercial law in Dubai and the principles of Sharia law apply to commercial transactions in the Emirate.

The Repercussions Of Registration For  Commercial Agencies Law UAE For Franchisors

Should you have an agreement that qualifies, then franchisees more often than not show preference in registration at the Ministry.  The main consequences of registration are:

  • The agreement cannot be terminated by the franchisor without the franchisor being able to show  some kind of justification to cause termination and this is not a clear contractual right to terminate in the franchise agreement itself through non-performance. This is not easy!
  • The franchisee is able to instruct the UAE ports and customs authorities to prohibit any products in respect of which it is the registered agent entering the UAE without its consent.While this provides good protection against parallel imports it also puts a registered franchisee in an extremely strong negotiating position in the event that a franchisor wants to terminate an agreement and appoint a new franchisee.
  • This allows a franchisee to force a franchisor to go to the commercial agencies committee (and, potentially, then to the local courts on appeal) to seek termination of the registered agreement
  • This, in practice, restricts a franchisor from access to the UAE market, either by way of itself establishing a licensed presence in the UAE or by appointing an alternative franchisee, until the case has been finally determined or settled and the agreement de-registered.
  • A final determination, if a decision of the commercial agencies committee is appealed to the local courts, may take in the region of 3 years (or possibly longer) to obtain.
  • The factors that the commercial agencies committee (and local court, if appealed) will take into account when assessing the level of compensation payable to a registered franchisee upon termination of the arrangement include the performance of the franchisee, how long the arrangement has been in place and whether the franchisee has incurred significant expenditures in establishing the business (with more weight being given to more recent expenditures).

Currently, franchises are operating in fast foods, dine-in restaurants, auto leasing, apparel, soft drink bottling, beauty products, hotels, toys, photography, dry cleaning, furniture, hardware stores, office supplies, natural health products, publications, quick printing, garden care and florists, sporting goods, retail/convenience stores, maid and personal services.

Today, the largest segment in this industry is fast food with most major US fast food companies are already established in Dubai.

GCC nations are at the forefront of growing the franchise economy in the Middle East, while Egypt is the leading franchising destination among African nations. With a combined population of 1.4 billion, a GDP of $1.9 trillionan affluent customer base and (relatively) business friendly environment, the Gulf Cooperative Council (GCC) – Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Bahrain and Oman – presents the biggest opportunity for existing and potential franchisors and franchisees in MENA. 

The franchise economy in Middle East and North Africa (MENA) is worth $30 billion and is growing rapidly. As per Middle East and North Africa Franchise Association (MENAFA), the franchise industry in the Middle East and North Africa is worth over $30 billion today, and is growing at a CAGR of around 27% annually. Concentration of high net-worth individuals, favorable regulations, and a young and upwardly mobile consumer market are the key attractions for franchisors looking to expand their operations within the region. On the other hand, the driving factors for franchises and local governments are the entrepreneurial opportunities presented by the franchising model, job creation, and the ability to inject international grade skills and processes into the economy. Further, investors also feel more confident opening a store under the umbrella of a large, multi-national corporation, as they expect franchises to respect the strict quality standards issued by the mother company, and also benefit from the well-established operating, marketing, and accounting practices of the franchisor. 

Not surprisingly, GCC nations are at the forefront of growing the franchise economy in the Middle East, while Egypt is the leading franchising destination among African nations. With a combined population of 1.4 billion, a GDP of $1.9 trillionan affluent customer base and (relatively) business friendly environment, the Gulf Cooperative Council (GCC) – Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Bahrain and Oman – presents the biggest opportunity for existing and potential franchisors and franchisees in MENA. 

Source: Arab Business Review – Legal source Tamimi & Co –UKTI

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The Economic implications of Brexit on Franchising are HUGE

FRANCHISORS should Panic! $2 trillion off world markets – as it happened. The economic implications of Brexit on Franchising will be felt by companies on a global basis

Franchising will see change in the UK unless the wheels of EU Brexit are set in motion quickly.

Image courtesy of Rawich at FreeDigitalPhotos.net

BREXIT and Franchising in the EU

Image courtesy of Rawich at FreeDigitalPhoto.net

 

 

It would be beneficial to all if negotiations for trade with Europe is set in place and it will help all nations if the UK is offered a deal without huge constraints.

If nothing is done, times will get tough and it could then be expected that voters will be remorseful to the point of another referendum being demanded.

Our country has a population who voted in favour of recession, not directly but by leaving the EU it was always forecast and it is starting to look as though we are rapidly heading into tough times.

This has been established as a forum of comment on the impact of Brexit and Franchising business.

The Franchising banks are currently not planning change to lending criteria within the franchising sector but they do soon change their minds and any franchise buyer on the cusp of buying would be advised to get on with an application whilst the banks are funding new businesses.

We want to be clear that for franchising and Europe, it is very much ‘business as UNUSUAL’. We will continue to work closely to monitor the situation and advise global franchisors on Franchising across Europe.

The fact is that as bank shares have been wiped over the last three days, there will not be money to invest in new franchise businesses and even huge infrastructure projects are being placed on a back burner.

Just look at the news, even the NHS was £350m a week better off according to the leave campaigners until Mr Nigel Farage admitted it was sales speak and not the true picture.

Another aspect was the assumption that a free trade deal could be struck, with UK borders closed and we could have business as usual with immigration under control.

Today– Brexit ministers are faced with a slight offer of trade with the EU based on free movement between countries and as final as we are about our border it comes at a huge price.

The price of closed borders with restricted trade is  a massive downdraft in the financial markets and  £3 trillion just got wiped off the global markets in our first 24 hours.

Richard Branson has commented “We lost more money in British shares than we paid into the European Union since the European Union started in one day. It’s been a bloodbath”.

“Young people, overwhelmingly, are telling me up until four days ago they could live and work in 28 countries – suddenly they’re restricted to one country. Britain’s going to be broken up into smaller units.”

Frankly any Franchisor seeking a foothold on the Continent would be advised to go for it now and make the most of our single market.

For globally minded franchisors Airstream Consultants (UK) Limited are offering initial free advice and a service that could take companies into the EU swiftly.

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Gil Ostrander

Gil Ostrander has more than 35 years of experience in real estate sales, franchise development, sales management and training in Canada, America and Europe. From 1995 to 2001 he was involved in the European expansion of the RE/MAX® franchise real estate system helping to establish the first 750 offices in Europe.

This company are backed by veterans who have opened businesses in 20 countries and created thousands of outlets for UK and US giants.

Richard Williams of Airstream Consultants (UK) limited

Richard Williams

As a business developer it has been a pleasure to work with a handful of extraordinary people many of whom have been involved with me for around twenty years sharing a vision for a a different way forward.

We help with franchise development plans, our role is market data, positioning, you need to be within a growing segment, have a pilot with solid financial qualifiers and have an offering suited to that marketplace. I only work with management teams who have BIG aspirations and who truly care about the welfare of the franchisee.

Our focus is to work with management teams who say – we have a BIG vision and business model we want to share with the world.

Our approach has seen US world leading brands utilize our support to open several continents, many countries and appoint thousands of agents.

We’ve recruited franchisees/agents, trained, managed, found country managers for many U.S. market leaders

Do get in contact +44 1886 880088

By Richard Williams

About me and listen to me on the radio

info@airstreamconsultants.co.uk

Head of Partnership Development
GLOBAL BUSINESS  CONSULTANT SPECIALISING IN FRANCHISING FOR EUROPE, MIDDLE EAST AND ASIA
 
Direct dial:

+44 (0)

1886 880088

Mobile:  +44 (0)   7711 882588

richard@airstreamconsultants.co.uk

Providing  Your  New  Frontier With Coverage  Across  The  European Union, Middle East And Asia

Twitter@FranchisorWorld

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  Airstream Consultants (UK) Limited

  

How to Change The World! Franchise on a Global Basis Without Running in Circles!

The temptation to race around from airport to airport as scattered enquiries come in for your successful franchise is so tempting and frankly you will probably need to do it in order to believe out findings.

As global business consultants we suggest you find a consultant to work with you and your task is finding a consultant who understands the key principles of successfully marketing and selling your franchise.

Usually you have an exploratory meeting decide on overseas you will target, then you have a non-binding letter of intent and then this indicates you are serious enough for your consultant to be comfortable on the research required for the production of a sales and marketing plan for entering your new frontiers.

RW board

Planning a marketing strategy and budget dictates the speed of franchise growth

The factors that will set your speed off growth will be your marketing budget & capacity, the crucial step is identifying market trends and how these are working in your target market.

The spread of several countries can certainly add stability for a franchisor whose focus has just been one country.

After data is collected you can settle down to working with your global franchise consultant on franchise market mapping & prioritisation.

Pricing will most certainly be different on a national, regional and global pricing basis.

Building a sales funnel with advertising; Public & Press relations; sales promotions & using your agent to build a sales network of franchise brokers is a great way to move forward.

Image courtesy of Rawich at FreeDigitalPhotos.net

Image courtesy of Rawich at FreeDigitalPhoto.net

At this stage you will seek help with translations, cultural sensitivity and taste in marketing materials/collateral. It might be that this is done in two stages, the first is a general overview and you might support a master licensees to really get the true culture of your business before they arrange translations.

The look & feel of your business might need consideration based on different market requirements. A good consultant can look at the local market, source the initial translations & certifications and even get a plan ready of direct marketing, digital marketing, exhibitions and if you have a larger budget you can enlist your own sales teams, appoint agents and set up an overseas operations centre for your company.

It could be that you would like one consultant to act as your coordinator and arrange the entire operation of franchise sales and support to be set in place.

We can help if you seek a consultant then do get in touch by contacting info@aistreamconsultants.co.uk

 

Best regards

Richard

richard@airstreamconsultants.co.uk

 

Richard Williams of Airstream Consultants (UK) limited

What Brexit Means For Your Global Franchise

The UK’s decision to leave the EU will have significant implications for franchisors and we are already working with our clients and in support of their operations whilst all the implications are understood.

eu-map

European Franchise Association

 For Now It is Business As Usual

The Franchising sector is adaptable and innovative when confronted with big challenges and these uncertainties will be planned out for the best way to capitalise on the situation over the next three months. Despite EU bureaucrats seeking an instant exit we will not see the UK doing anything overnight and it is business as usual for the near future. Albeit franchise buyers and sellers will ask what the UK looks like outside the EU. Will the EU see a domino effect with Greece, France, Holland Germany and other nations leaving via more referendums.

We will help to work out the details and legal issues to ensure business confidence is maximized during a time when Brexit could  be damaging to global franchise companies as they adapt to new market conditions and opportunities in both the EU and a more independent UK

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This image is courtesy of Rawich at FreeDigitalPhotos.net 

UK Franchisors cannot turn their backs on Europe. Global Franchisors understand we only left the EU but we are a leading economy in Europe.

For the majority of Franchisors in Britain the fact the UK is leaving the European Union – Brexit – is a major source of anxiety. Not only is the break with the EU creating uncertainty that could be bad for business, it is already damaging the UK economy and Moody’s ratings agency said Britain’s AA1 credit rating is looking negative. In fairness Standard & Poor have not at the time of writing this article made any official downgrade to the UK credit rating.

It is going to be a time when you can read a huge amount on all of the economic consequences for the UK of Brexit and we will focus in by filtering out what this means to global franchising.

Some of the news is impartial; much of it is biased and very little has been written on the consequences for the franchise industry.

Franchisor World will address this gap by systematically filtering out the news for franchisors and franchisees as Brexit makes an impact on both the UK and the rest of the Continent.

The UK has long been a favourite destination for U.S. Franchisors but Franchising has grown rapidly in Europe in recent years to overall become the biggest destination for global Franchise companies.

No need for panic as it will be business as usual whilst Great Britain negotiates is departure from the EU and we could see 0% Bank of England base bank rates to stimulate our economy.

The major parties in British politics are both the scene of a current coup, Labour has had 9 resignations from its Shadow Cabinet and whilst that rocks the left it is a divided Conservative Party with Gove/Johnson causing Prime Minister David Cameron to resign.

This is a scene of unprecedented politics but does prove democracy reigns albeit the impact on the UK and on the rest of the EU will be huge.

This is an introduction to Franchisor World as a global newsletter from Airstream Consultants (UK) Limited

This article is from research carried out by Airstream Consultants (UK) Limited Head of Partnership Development Richard Williams Let’s Talk Business

What is a Franchise?

In my opinion the answer could be really short, it could be said that a franchisor must have a profitable concept that is worthy of being firstly capable of duplication and secondly a teachable business transferable to investors as a master franchise as well as independent owner operating franchisees who are entrepreneurs remotely from a franchisor.

Subway Franchise

Franchise brands entering EU Markets Study Legislation

Image courtesy of Mister GC at FreeDigitalPhotos.net

This simplistic approach is quite enough to get you into franchising and frankly you would be well advised to pay heed to the EU Franchising legislation.

Of course you are only interested in EU franchise legislation if EU countries are a target market for you to either expand your franchise into or if you are an investor seeking to buy a brand.

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European Code of Ethics for Franchising.

Image courtesy of Rawich at FreeDigitalPhotos.net

 

The EU Franchise Code:

“Franchising is a system of marketing goods and/or services and/or technology, which is based upon a close and ongoing collaboration between legally and financially separate and independent undertakings, the Franchisor and its individual Franchisees, whereby the Franchisor grants its individual Franchisee the right, and imposes the obligation, to conduct a business in accordance with the Franchisor’s concept.

The right entitles and compels the individual Franchisee, in exchange for a direct or indirect financial consideration, to use the Franchisor’s trade name, and/or trade mark and /or service mark, know-how, business and technical methods, procedural system, and other industrial and /or intellectual property rights, supported by continuing provision of commercial and technical assistance, within the framework and for the term of a written franchise agreement, concluded between parties for this purpose.

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Image courtesy of Stuart Miles at FreeDigitalPhotos.net

KNOW-HOW – the description below is adapted for franchising from the definition in:
COMMISSION REGULATION (EC) No 2790/1999 of 22 December 1999 on the application of Article 81(3) of the Treaty to categories of vertical agreements and concerted practices*
*replaced in 2010 by the COMMISSION REGULATION (EU) No 330/2010 of 20 April 2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices which is accompanied by its Guidelines http://ec.europa.eu/competition/antitrust/legislation/vertical.html

Learn more:  at EFF Website or have a free consultation with Richard Williams +441886 880088

 

Note: EC Regulations 330/2010 and 2790/1999 describe intellectual property rights’ (IPRs) as including industrial property rights, KNOW HOW, copyright and neighboring rights.

“Know-how” means a body of non-patented practical information, resulting from experience and testing by the Franchisor, which is secret, substantial and identified;

-“secret” means that the know-how, as a body or in the precise configuration and assembly of its components, is not generally known or easily accessible;

EFF interpretation: ‘secret’ must not be understood in a narrow sense whereby each individual component of the know-how should be totally unknown or unobtainable outside the Franchisor’s business;

-“substantial” means that the know-how includes information which is indispensable to the franchisee for the use, sale or resale of the contract goods or services;

EFF interpretation: in particular for the presentation of goods for sale, the processing of goods in connection with the provision of services, methods of dealing with customers, and administration and financial management; the know-how is indispensable for the Franchisee because it constitutes the transfer of a tested and proven business system, devised to improve the competitive position of the Franchisee, in particular by improving the Franchisee’s performance or helping it to enter a new market .

-“identified” means that the know-how must be described in a sufficiently comprehensive manner so as to make it possible to verify that it fulfils the criteria of secrecy and substantiality ;

EFF interpretation: the description of the know-how can be set out either in the franchise agreement, in a separate document or recorded in any other appropriate form.

• In a lot of franchise literature, particular in English, the business system described above is known as “business-format franchising”. Other languages use the terms “formula” or “system” in reference to format.

Source of the following description: Martin Mendelsohn, “Franchising Law”, Kluwer, 2004

“Business format franchising” is a type of commercial relationship based on a contractual agreement between two independent business parties, the franchisor (the seller of the business proposition) and the franchisee (the buyer of the business proposition), in which the franchisor grants the franchisee, for the term of the contract, the right to buy and operate the franchisor’s branded and formatted business system for a fee and according to the prescribed rules and procedures developed for the system by the franchisor.

The franchisor’s “business format franchise” necessarily comprises the following 5 essential elements:
1. A brand name (registered as a brand name and/or a trademark, etc.) which serves as the umbrella sign for the network, and a rallying sign for the consumer and public,
2. a licence to the use the brand, granted to the franchisee by the franchisor,
3. a business system – a business concept formatted into a duplicable value “package” founded on the franchisor’s tested Know How and his continued assistance during the term of the agreement,
4. payment by the franchisee of a financial consideration, either in a direct form, such as an entrance fee and/or a continuing fee (“royalty”), and/or an indirect form such as a mark-up on supplied goods,
5. the investment in, and ownership of, the assets of the franchised business by the franchisee. See more at European Franchise Federation 

Are you looking to franchise into Europe?

Get in touch with an Airstream Consultant

 

 

The European Franchise Market Going Mad For U.S. Brands

The UK is a great place to come to as franchising is worth a record £15bn.

eu-map

Photo source http://www.eucountrylist.com/

We have seen a 14% surge in the number of outlets owned by franchisees in the past two years.

In the UK we have 901 companies covering 44,000 franchisee-owned units in the UK.

The whole of Europe could be mad for the product or service as supplied by your franchise or business opportunity.

Don’t miss out!

Whether you are resident in the UK and seeking EU expansion or based outside the EU so needing help to start the UK– we can help!