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المنظمون

السيد / رولف كيرست Mr. Rolf Gerhard Kirst. المنظمون. With reputation comes responsibility. Benefits by Franchise in Saudi Arabia. How to implement franchise know-how What needs to be done to development a franchise friendly environment for SME’s. Introduction Rolf Gerhard Kirst.

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المنظمون

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  1. السيد / رولف كيرست Mr. Rolf Gerhard Kirst المنظمون

  2. With reputation comes responsibility Benefits by Franchise in Saudi Arabia • How to implement franchise know-how • What needs to be done to development a franchise friendly environment for SME’s

  3. IntroductionRolf Gerhard Kirst • Personal introduction • Independent entrepreneur since 1977 • Experience in Cooperation since 1982 in the travel industry • Franchise experience since 1990 with travel agencies • Regional Master for Uniglobe Travel since 1994 • Board member of the DFV since 1999 • Board member and Vice President of the EFF since 2001 • Member of WFC

  4. How to implement franchise know-how in a country • Prerequisites by the government for SME‘s and Franchise • Building an association versus private consultancy • PR and marketing to make Franchise attractive • Financing • Training (transfer franchise know-how to officials, franchisees, franchisers) • Consulting firms for developing local concepts • Recruitment agencies for franchise sales

  5. Different understanding in the Middle East • Taking an international franchise licence here means to get exclusivity rights • Representing a brand and open a number of stores • Sub-franchise is mostly unknown or rare

  6. The big challenge • Franchise in the Middle East is in the hand of a few rich families • All outlets are managed by the main company • Why not sub-franchise ?????

  7. Middle East By Age Group Middle East Below 10 yrs. 10 - 19 yrs. 20 - 29 yrs. 30 - 39 yrs 40 - 49 yrs. 50 -59 yrs. Over 60 yrs. Total Population 22,128,000 18,844,000 15,866,000 12,584,000 8,059,000 4,120,000 3,753,000 85,156,000 (%) 26.0 22.1 18.4 14.8 9.5 4.8 4.4 The enormous potential • See demographics

  8. Why sub-franchise • Big families - but not every son can be fathers heir • Young people need a vision and want to be self employed even if in smaller scale • A big crowd of potential SME‘s • The range for big companies is limited

  9. Understanding ... • The benefits of sub-franchising • To keep the business in local hands • SME‘s positive influence to the economy • To meet local employment obligations The big companies should reconsider their strategy

  10. The situation today in KSA • The Saudi government wants to establish Riyadh as the capital of franchise in the Middle East • What needs to be done to development a franchise friendly environment for SME’s

  11. The European model as a basis • The Code of Ethics • Self regulation by the market • Unidroit - Model law versus self regulation • The role of national associations and the EFF

  12. Pre-requisits by the government for SME‘s and Franchise • Low entry barriers for SME‘s • Support with external know-how • Fonds for financing • Recognition by the government and the public

  13. Building an association versus private consultancy • First step by the Chamber of Commerce • Second step by Private Consultants • Third step building an associationdominated by entrepreneurs

  14. PR and Marketing to make Franchise attractive • With support of the government the press will do his job • An association or Chamber of Commerce will promote Franchise in general and impart franchise know how

  15. Financing • Bank loans • Private investment • Government fonds

  16. Training Transfer franchise know-how to officials, franchisees, franchisors • Seminars • Exhibitions • Info trips to other countries (Europe, USA) • Special training courses • Business plan • Documentation etc.

  17. Consulting firms for developing local concepts • Local multi unit concepts want to expand with franchise • How to create the franchise model • Manuals • Training • Communication concept • Marketing and CI

  18. Recruitment agencies for franchise sales • Direct recruitment • Recruitment agencies • Sales material • Marketing for franchise sales • Application process • Finding the right partners • Legal documents

  19. The need of a Franchise Competence Center • General Franchise consulting • Franchise development • Franchise recruitment • Franchise financing • Franchise marketing • Franchise training

  20. Conclusion There is a lot to do Tackle the challenge It‘s a long way to the capital of franchise

  21. السيد / رولف كيرست Mr. Rolf Gerhard Kirst • المنظمون

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