Part of the ppt from the 1st franchising awareness workshop


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This slide presents an introduction to franchising/dealers/business partnerships in the Ugandan Context. These basics were extracted from one of the above workshop's Day One Presentations

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Part of the ppt from the 1st franchising awareness workshop

  1. 1. 1ST FRANCHISING AWARENESS WORKSHOP THEME: FRANCHISING OPPORTUNITIES IN UGANDA (May 06 – May 07, 2010; Hotel Triangle Kampala) DAY ONETopic: OVERVIEW OF FRANCHISNG Abbey Mutumba + 256 712 683334 (MBA,BCHM, NEVI International) Franchising Researcher/MUBS Franchise Dev’t Executive/ Abbedax E & H Ltd
  2. 2. AWARENESS NOTETHIS POWER POINT IS JUST AN EXTRACT FROM SOME SLIDES THAT WERE PRESENTED DURING THE 1ST FRANCHISING AWARENESS WORKSHOP IN MAY 2010 You will appreciate the following basics in Franchising for our Competitiveness in the Common Market P.T.O
  3. 3. THE BASICS: What is Franchising?• The practice of contractually replicating a successful business and/or social model through independent operators usually called dealers or distributors or authorized partners in Uganda• A well established brand selling rights to an independent operator through a franchise contract allowing that individual/company/partner to use the brand name, brand identification features (logo, trademarks, colors, etc), proven operating systems, and networks to duplicate a similar business elsewhere under the standards set across the chain of branches.• It is a collaborative (win-win) strategy where both parties are committed towards mutual success• Franchising is for any organization with proven win-win structures and systems that uses a branch network e.g businesses, NGOs, associations, cooperatives, ministries, governments, political parties, churches, mosques, clans, clubs, public utility organizations, etc• There is business/commercial and social/micro franchising
  4. 4. THE BASICS: Who is involved?• A franchiser- the seller (must be well established)• A franchisee-the buyer (must be highly motivated, financially strong, and willing to achieve mutual success)• Franchising lawyer• Franchising consultant• Other key professionals such as a franchising broker, bankers, BPO/property manager, financial analyst/accountant, insurer, trainer, M&E professional, system manager, etc• Any 4 of those above are at least needed for competitive results
  5. 5. Forms and Types of Franchising• Forms2)Trade/Product Name 2) Business-format• Types;Single unit (only one location/outlet)* Multi-unitSequential (you are allowed to open one outlet -at-a-time after proven performance)Broadband franchising (the franchiser retains more control)Area development (rights to open multiple franchises, no performance proof needed)Subfranchising (Resale/Master /Area Rep Franchising)Fractional Franchising (Part of the establishment)
  6. 6. THE BASICS:Competitive Benefits TO the Franchiser Expanding/increasing the number of branches using the independent operators’ money (OPM), people, and local market understanding Extra income from the franchise/initial fees, loyalties/on-going fees, and other loyalties Leveraged purchasing due to the bigger biz network Higher chances of winning national, regional, and international contracts Expanding at less risk and commitment of resources, etcThere are some manageable limitations like the wrong selection of franchisees/franchise partners
  7. 7. THE BASICS: Benefits to the Franchisee Ready market due to brand recognition and loyalty Franchisee support package from the franchiser (site selection, plans & designs, low-cost financing, M&E, training and biz dev’t) like that of Fresh Diary Safer business start-up like Nando’s Faster business growth like Warid Telecom Less costs of promotions/adverts and waste A chance to become a master franchisee or area developer like Simba Telecom A stepping stone to create your own strong brand (successful franchise system) later. Like the way McDonald’s did it and is now a leading franchiser Some limitations especially from the low franchising awareness like the territorial restrictions, and fraudulent franchisers who promise wine and serve bad water.
  8. 8. Limitations to the Franchisee in Uganda• Choosing the wrong(fraudulent, unreliable, undependable, selfish, and rigid etc) franchisers out there• Limited franchising awareness and appreciation• High franchise and loyalty fees especially from foreign franchisers• Weak franchising laws, gov’t support, infrastructure, local success stories to benchmark with, etc• Limited access to local or Uganda’s franchising researchers, consultants, associations, and role models• Etc
  9. 9. Success Stories1. McDonald’s (the world’s leading food service retailer, with more than 30,000 franchise restaurants serving 52 million people in more than 100 countries)2. Reliance & Aryans’s Franchised BPO outlets (spreading like wild fire across the big and small towns of India within just 6 months of launching this joint venture franchise)3. Caremark ( a fast growing domiciliary care franchise which offers care and support services to over 2,000 clients within their own homes and their local communities in UK and Ireland through a network of 60 franchise outlets)4. In Uganda; Warid Telecom , MTN Village Phone, Bata, Simba Telecom, Total, Sheraton, Barclays, Spear Motors, Nandos, LG, Marie Stopes, Cavendish University, etc
  10. 10. Successful case studies in Uganda (and their countries of origin)• MTN VillagePhone (South African)• Warid Telecom (UAE)• Spear Motors- Benz (German)• Simba Telecom (Ugandan, others are coming up)• Nakumati (Kenyan)• Sheraton Hotel (USA)• Nando’s (South African), etc
  11. 11. Franchising Competiveness in Uganda and East Africa-General Increasing franchising awareness and experience (appreciation of the competitive benefits and what it takes to be a successful franchiser/franchisee among key stakeholders in government, private sector, and social sector) through this series of Franchising Awareness Workshops, Networking, and Abbedax’s proposed ABBEY’S FRANCHISE SHOW to kick-start in 2012 among others Increasing presence of franchiseable brands (big businesses that are reputed for proven business success, duplicability/ability to be replicated elsewhere, ease to learn and manage, brand recognition , market attractiveness and loyalty) Increasing availability of suitable franchise partners (franchisees and franchisers- to be discussed tomorrow)
  12. 12. THE BASICS: Key Success Factors in Uganda Access to franchising help (franchising researchers and consultants, lawyers, property managers(BPO), other professionals, franchising associations, expos/exhibitions/events, and the relevant government departments) Infrastructural development in the country (transport, ICT, banking and other financial services, education, and incentives) Business culture (considered success stories, business trust, strength of traditional models, attitudes towards local vs international brands, beliefs, etc) Franchising-related legal framework ( contract law, copy rights/intellectual property protection, licensing) Thank you for your time to become more aware of franchising!!!. DON’T MISS THE FRANCHISING CONFERENCE in November 2012