Franchise Pre Entry Studies: Country/Area Franchise Expansion Strategy
(Specific to Franchisors/Master Franchisees in the Expansion Stage)

Program Purpose

Identify the most important elements which may affect the successful franchise/sub-franchise entry in a specific country or region.

“I'm not sure that you can say definitively that some roles are better filled by consultants, but I would say that some projects are better handled by consultants.”
Jesse James Garrett

A User Experience Designer.Ferrari”

Program Synopsis

Whether you are a franchisor or a master franchisee who wants to enter a new market or an investor who desires to obtain the franchise rights to introduce a specific brand to your country/region, this program will help you determine the suitability of your business concept and franchise model in the target market area.

With the assistant of a network of representative offices worldwide, strong relationships with leading franchise industry experts, memberships and connections in various franchise associations, published official research and reports, franchise directories and publications, this comprehensive study will provide ample information which will help you understand the variables governing the target market and provide you with insights for mitigating any possible risks.

The study will include the following:

Demographic Profile: Population growth rate, age structure and median age, age and sex ratio, ethnic groups, and cultural overview.

Geographic and Environmental Characteristics: Administrative divisions, largest cities, population distribution, climate and natural hazards, and new commercial and residential developments.

Economic Factors: Main industries, Gross Domestic Product (GDP), Human Development Index (HDI), cost of living, purchasing power parity, inflation rate, business and investment environment and monetary policies (affecting inward and outward money transfers).

Retail Environment: Major shopping malls and leading brands by sector, e.g. service, food, retail, and average retail rent.

Labor laws and imported talents legislations: Average salaries and wages and unemployment rate.

Other Indicators: legal systems, education and health, telecommunications and transportation, supply chain systems.

At the end of the program, the consultant will produce a complete report covering the following:

  • Possible obstacles for entering the market, and the means of mitigating them.
  • Means of transferring the business system, knowhow, launch marketing assistance and other elements of the initial and ongoing support to franchisees.
  • Suggestions for business concept customization (topicalization) and franchise model adaptation. This includes unit design, product and service mix and offering, proprietary products, supply chain systems and methods of training and delivering the franchisee support package.
  • In addition, the consultant will produce a three-year financial study to establish the financial key factors for entering the market to outline the number of franchise units to be established over the initial term of the agreement, and will provide recommendations related to the franchise fee structure including territory/license fees, royalties, and marketing levies.

Program Language: English or Arabic subject to client’s requirements.