Franchising in the Middle East
Interview with Imad Charafeddine, FRANCORP MIDDLE EAST, United Arab Emirates
How did you get started as a franchise consultant?
I come from a strong franchise consulting background to oversee all of Francorp's business development in the Middle East. I was also accredited as Franchise Sales and Management Consultant from Francorp University in the States in July 2006. As a consultant I help my clients in the development of their franchise strategic planning, structure report, franchise operational manual, marketing materials and marketing plan.
I founded Francorp ME and since then we have worked with the biggest franchises around the world. Offering a full range of consultancy services to both buyers and sellers of franchises, Francorp ME is a major player in the region and has dealt with some of the biggest success stories including Just Falafel, Kcal and Circle K. The key drivers for Francorp are to increase their brand awareness and the services of the company into the potential franchisees and the investors within the region.
Who are your clients?
Our clients arediversify in term of segment:
Restaurants: Just Falafel – Kcal – Shushi Counter –Circle café- Broccoli Pizza
Beauty: Hello Kitty Spa – Magiff
Convenient stores: ENOC Zoom –Bakeria
Coffee shop: Coffeol – Coffee 2 Go – GranoCoffee
What are the current trends on the franchising market in your country?
In our region, we have witnessed 27 % growth on the franchising market. Foreign franchisors expanding very fast.
How many companies in your country offer franchises?
The overall franchise market in the UAE is worth AED 1.1 billion, out of which fast food and retails accounts for 60% of the share.
Which are the best Franchises by growth, branch and demand?
- Just Falafel is the first “Falafel” fast food with a proven method… franchisees succeed due to competence, uniqueness and aggressive marketing strategy of the franchisor;
- Kcal is the first healthy delivery & fast food in the region with a high demand;
- Café 2 Go is the first UAE born café and the fastest growing café franchise;
- Broccoli Pizza fas a unique business concept.
Which branches experience a lack of franchises?
Being a shopping and tourist destination, fast food and retail franchises have grown rapidly in the UAE. Education, Services and Health, which are highly franchisable industries, are experiencing lack of franchises in the country at the moment.
What is the profile of the people who choose to buy a franchise?
It is usually an investor with a strong business experience in the region.
A person who can easily, finance, set up and get suitable locations in the countries they operate in.
What should a franchisor know before coming to your country? Any specific requirements, legal restrictions.. etc?
Our region has different requirements in term of strategic planning, development schedule & fee structure.
To any new franchisor entering the ME, we always recommend to make a prior assessment of the market, before making a decision whether their business suits to the Middle Eastern market.
We provide services that include: strategic planning, schedule development, setting of goals, franchise feasibility studies, business plan.
