Franchising

Franchising Consultant UAEWidely described as ‘being in business for yourself but not by yourself’, when it comes to food and beverage service or retail, franchising remains the approach preferred by the majority. While investing in a franchise, one is essentially buying into a tried and tested operating system and its brand equity. At its very basic level, this could also be described as a shortcut, in which the investor is paying for someone else’s learning curve. That way, at least theoretically, one can get down to focusing on making money as soon as the business opens. Regardless of the popularity of the brand however, franchising, in itself, does not guarantee success. In fact, it exemplifies a classic case of ‘the devil lying in the detail’ – a truism that many failed franchise agreements will testify to. Stellar Eastern provides distinct value to its customers through its in-depth understanding of the key issues at stake, and by ensuring that the franchisee enters any agreement as an equal beneficiary. Moreover, our experience is specific to the UAE through first hand involvement and extensive negotiation in franchise deals for country rights. Our areas of value delivery and franchising expertise include:

  • Financial feasibility
  • Local regulations
  • Unit and territory fees
  • Brand development schedule
  • Royalties
  • Marketing contributions and support
  • Sourcing sites
  • Supply chain
  • Brand adaptation
  • Training programmes, manuals and online portals
  • Financial controls
  • Store opening support
  • Ongoing support

IMPORTANT – For obvious reasons, it is recommended that the franchise agreement be sent to legal consultants for review before the final signing. However, lawyers ┬ápour over each detail only within the framework of established laws, and are usually unfamiliar with the impact of operational details built into the contract. These issues, more often than not, have a much greater long term bearing on the agreement, and must be separately dealt with from a Food and Beverage expert’s perspective.