NTRY PROFILE | LEGAL Plus: REGIONAL NEWS | EXPO COVERAGE | FINANCE | COUNTRY PROFILE | LEGAL
UE 03 | January - February 2012 www.thefranchisemagazine-mena.com
ISSUE 0309 | January - February 2012 ISSUE | February - March 2013
IFA Partners with U.S. Government to Support Economic Growth in Tunisia P9
FRANCHISEE INTERVIEWS Linguaphone Group P 24 Freshi Ice Sticks P 44
Cross Border Franchise Disputes P 16
Classic Burger Joint signs with Franchise Development Services P 23
SALMONTINI: THE SALMON OF KNOWLEDGE
| ABHA FRANCHIsE 12 – SAUDI ARABIA TO T ABHA FRANCHISING EXHIBITION 2012 p10
The Franchise Magazine MENA takes a look at UAE DHS 20 | Kuwait KD 1.5 Egypt E £20 | KSA SR 20 | Bahrain Lebanese success Salmontini La Maison du Saumon. BD 2.00 Jordan JD 3.5 | Lebanon LL 75 Qatar QR 20 | Oman OR 2.0
|| ABHA FRANCHIsE COFFEE - THE EMIRATI WAY TO 2012 – SAUDI ARABIA 28 HOSTP ABHA FRANCHISING EXHIBITION 2012 p10 SPECIAL REPORT
UAE DHS 20 | Kuwait KD 1.5 ACE HARDWARE INTERNATIONAL
P 21
Egypt E £20 | KSA SR 20 | Bahrain BD 2.00 Jordan JD 3.5 | Lebanon LL 75 Qatar QR 20 | Oman OR 2.0
SATIS F Y I N G CRAV I N G S . C O NCE PT G REAT
AF T E R
CO N CE PT !
When it comes to bringing in leading F&B brands,
Synonymous with good taste and world class standards
Cravia has been the Middle East’s franchise partner of
in the UAE and KSA, Cravia has managed to serve over
choice since 2001. Our franchises include global leaders
250 million tastebuds in a decade of achievement. And
like Cinnabon, Seattle’s Best Coffee and Zaatar w Zeit.
we have only just started!
www.cravia.com
CONTENTS
Interiew with Emitati Entrepreneur, Mr. Jassim Al Bastaki and an indepth view of Café2go and its success
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24
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44
REGIONAL NEWS
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zpizza comes to dubai Launched by the brand’s UAE franchise developer 54º East, the Dubai-based F&B company, opened its first restraunant in Dubai Marina. The Franchise chain from California online ordering and is set for 20 stores in the UAE ACCOR Middle East Accor Middle East has signed a franchise management contact to develop the first suite Novotel hotel in Riyadh.
EXPO COVERAGE
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FRANCHISe expo paris 24th- 27th March 2013
SPECIAL REPORT
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cross border franchise disputes Rima Jameel from Jblegal explains about issues that can occur in cross bordered Franchising
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FRANCHISE OPPORTUNITES.. 21 ACE hARDWARE INTERNATIONAL 26 Franchise development services
COVER STORY
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Interview with Emirati Entrepreneur Mr. Jassim Al Bastaki and an in-depth view of Café2go and it's success.
36 Goldgenie 38 Joshua’s SHOARMA 42 freshi ICE STICK’S
FRANCHISEE INTERVIEWS
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LEGAL
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Ace Hardware International signs Afghanistan License
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Linguaphone group Interview with Pingu’s English, a three-level pre-school English language program
46 taylor of old bond STREET 48 figeros PIZZA 28 CaFÉ2go
Freshi ice sticks Interview with Mr. Tarik Mohamed Alwash, General Manager, Freshi Ice Sticks
24 pingu’s english
FEBRUARY - MARCH 2013
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EDITORIAL
Stephen O’Donovan Director
T
he Franchise Magazine has seen December and January progress well into 2013 with steady growth. The outlook for the year is set for more demand for international Brands. Countries such as Australia, South East Asia, India, Europe, South America are all looking at ways to progress into the UAE and GCC. With such high demand for International growth for food products, restaurants and services, the hub of Dubai and the rest of the MiddleEast is really attracting the eyes of the world. This past couple of months has seen brands such as
Elevation Burger, Novotel, Dukkan Falafel and Café2go spread there wings in the region. This edition also focuses on a Cover Story with Cafe2go which has great potential to grow internationally, yet another company homegrown from the UAE. Our latest 'big' news goes to Ace Hardware International for its expansion to Afghanistan, showing us that big American brands are required in the region. FDS UAE our sister company has signed another contract for a full development programme with Classic Burger Joint from Lebanon. We will be
looking forward to keeping you updated with their progress. Opportunities we will be covering Goldgenie, Joshuas Shoarma, Freshi Ice Sticks, Taylor of Old Bonds and Pingu's English. Expo’s this coming months include the IFA Annual Convention in vegas and the ever popular established Paris show.
For more details on the latest franchise news and expos please visit our website
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The Franchise Magazine Middle East and North Africa is published by Apex Middle East Services For editorial, advertsiing or subscriptions enquiries, please contact us today: Tel +971 4 3042510 | Fax +971 4 3042511 | visit www.thefranchisemagazine-mena.com | post: Apex Middle East P.O Box 32429 RAK Media City, Al Jazeera - Al Hamra Ras Al Khalmah. Apex Middle East is a BVI registered company. | Printed by : Union Printing Press This magazine is distributed through newsagents through out the Middle East, subscriptions, exhibitions, banks, hotels, airports and professional advisors This magazines editorial and advertisiments for companies featured is not a recommendation from the magazines editorial team and readers should take advice from professionals experianced in Franchising.
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REGIONAL NEWS
Franchise UAE ends successfully MIDDLE EAST | Franchise UAE 2012, the two day international franchise, retail and trade show organised by Franchise Middle East has ended successfully. The 4th edition of Franchise UAE show held on December 4 and 5, 2012 at Crowne Plaza Hotel, Sheikh Zayed Road, Dubai concluded on a buoyant note, with 90 per cent of exhibitors expressing their commitment for the next show. The two-day show offered huge opportunities in exploring all facets of franchising, retailing and licensing. The event organised by Franchise Middle East featured over 100 international and local brands, unique business and financial solutions companies,
and participation of over 5000 business buyers. Nearly 80 business leads valued at over USD 65 million were generated at the show, with major franchisors reporting inquiries that could be converted into firm deals in the short term. Among the franchisors that reported highly positive results were Plan Ahead Events, the world’s largest event management company, SIGNARAMA, the world’s largest sign franchise, as well as Binhendi Hospitality, Yogurberry, Tea Time, London Fish & Chips, Tsagarakis, Spud, Chocomelt, The Frozen Yogurt Factory, New York Fries, Halwa & Gahwa – local brand, Tea Time, Edo Café, Nora Dance Group,
Lookswoow, Heritage for Henna, Tealand and British Orchard Nursery. Sector-wise, the Food and Beverage segment received maximum inquiries, followed by Fashion and Retail, Education and Services. The 4th Franchise UAE exhibition was organised by Franchise Middle East, the overseas arm of Franchise India Holding Ltd, Asia’s leading integrated franchise and retail solution company, supported by Indian Franchise Association (IFA).
ZPIZZA comes to Dubai
Dukkan Falafel awards Qatar franchise
UAE | US-based pizza brand zpizza has recently opened first location UAE, in Dubai. Launched by the brand’s UAE franchise developer 54º East, the Dubai-based F&B company, the new store is zpizza’s fifth store in the Middle East region. The store is located at Jumeirah Beach Road in Dubai Marina and covers approximately 2,000 sq ft area. It offers sit-down, carry-out and catering, as well as delivery and online ordering of their full menu. 54º East is targeting to open nearly 20 plus units in the UAE, and also looking to obtain further territories. Founded in California, the worldwide leader of the better pizza segment for over 25 years zpizza operates 100 stores internationally. They have branded themselves as ‘The Pure One’, and began a pure revolution which includes everything from their fresh produce used for toppings to their dough which is prepared fresh daily from 100 per cent organic wheat flour. They are also able to cater to special diets with options like gluten free crust, vegan cheese, and veggie crumble toppings.
QATAR | UAE’s falafel restaurant brand Dukkan Falafel has entered Qatar via franchise route. The brand known for providing the authentic falafel dining experience, has signed a franchise deal with Qatar-based Al Jassim Group. To develop the brand’s market presence, Al Jassim Group plans to introduce the brand in phased manner to multiple prime locations in Qatar over a period of two years. Back home, Dukkan Falafel owned by Alternative Dining enjoys wide popularity. It has grown from one outlet in Dubai’s Jumeirah district in 2010, to 18 key locations in the UAE by now. In addition to a range of falafel platters and sandwiches, the brand also offers a variety of hummus and its in-house preperation, freshly baked Arabic flatbread.
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REGIONAL NEWS
Nestle Toll House SAUDI ARABIA | Nestlé Toll House Café by Chip, a premium dessert destination franchise concept, announced the grand opening of its second café in the Kingdom of Saudi Arabia. The location is part of a larger deal to bring nearly 50 cafés throughout the country within the next 10 years by the Emad Al Aboud Group, which became master franchisees of the brand in December 2010. “We have created a café experience unlike any other, and we are excited to offer the ultimate dessert destination to consumers and business-minded individuals on an international level,” says Ziad Dalal, founder and president of Nestlé Toll House Café by Chip. “The Emad Al Aboud Group is expanding our brand in the Kingdom of Saudi Arabia, and we know their reputation of fine service and exceptional business practices will be on display in each Nestlé Toll House Café by Chip location they open throughout the country,” he adds.
The company’s Kingdom of Saudi Arabia location marks the brand’s 11th café in the Middle East. With more than 100 locations open worldwide, the opening by the Emad Al Aboud Group is part of a larger strategic plan to expand the brand’s presence internationally, as well as to key markets across the United States. “We are aggressively growing our brand, and the agreement with the Emad Al Aboud Group shows our dedication to bring highquality desserts to consumers worldwide,” says Dalal, who added that the brand is sure to impress new and longtime fans. Nestlé Toll House Café by Chip presents a proven business opportunity for individuals seeking to invest in a world-class brand. Seeking potential single- and multiunit franchisees, as well as master and area developers, the company is looking to award franchises to individuals who possess an entrepreneurial spirit, passion for the brand, and are committed to providing quality and service.
ACCOR Middle East - First Saudi Deal SAUDI ARABIA | Accor Middle East has signed a franchise management contract to develop the first Suite Novotel hotel in Riyadh. The French hotel operator’s upper midscale brand will make its debut in the Gulf kingdom following the deal with Al Hokair Group for Tourism and Development. It is the first franchise agreement between Accor and Al Hokair Group and their second project after the opening of Novotel Dammam Business Park in 2011. The two companies said in a statement that they are looking at expanding their partnership, and will cooperate for additional Suite Novotel projects in the country. Suite Novotel Riyadh Olaya will offer 115 suites, several food outlets, banqueting facilities, three meeting rooms, and leisure and recreational facilities including a swimming pool and a fitness and wellness centre. Christophe Landais, managing director Accor Middle East, said: “We are delighted to join forces again with our partner Al Hokair Group in this exciting venture. We share a common vision to grow tourism in the Kingdom and to create an off-beat, avant-garde spirit that invites guests to experience a new form of hotel living in Saudi Arabia through our Suite Novotel brand.”
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FEBRUARY - MARCH 2013
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REGIONAL NEWS
About the International Franchise Association The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.
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REGIONAL NEWS
IFA Partners with U.S. Government to Support Economic Growth in Tunisia TUNISIA | The International Franchise Association (IFA) today announced a partnership to support economic growth through the formation of franchise businesses in Tunisia with the Overseas Private Investment Corporation (OPIC), the international development finance arm of the U.S. Government, and the Middle East Investment Initiative (MEII), a non-profit organization dedicated to stimulating economic growth and job creation in the region. The partnership will include the development of a credit facility that will partially guarantee loans to Tunisian businesses to enable them to acquire and operate franchises, produce goods and services to supply the franchise businesses and establish Tunisian businesses as franchisors. Further, technical assistance will be provided to local partner banks to build their capacity to effectively lend to franchise businesses. MEII will manage the credit facility in which partner banks will lend to Tunisian business in local currency. “The franchising business model can support economic growth in
Tunisia by leveraging the power of U.S. brands in many business sectors including food service, hospitality, retail and the service sector,” said IFA President & CEO Steve Caldeira. “There is a tremendous appetite for U.S. brands in developing countries. With the support of U.S. franchisors and partnerships with OPIC, MEII and qualified investors in Tunisia, franchising can help lead to economic growth in this important developing country.“ IFA members will participate in an upcoming Tunis Med Franchise Expo February 27 to March 1 in Tunis and the IFA is advising on the credit facility which allows, for the first time, franchisors to enter a foreign market with the backing of their franchisees by U.S. government funds. This program will advance President Obama’s National Export Initiative, which aims to double U.S. exports by 2015. In December 2011, the IFA was recognized with the Department of Commerce’s “Peace Through Commerce” award for “fostering economic stability, prosperity and peace around the world” through the worldwide growth of US franchise businesses.”
New Domino’s Pizza store in Riyadh serving tasty treats RIYADH | Alamar Foods, the Domino’s Pizza master franchisee with operational rights in the Middle East, North Africa and Pakistan (MENAP), has announced the opening of its 200th store in Riyadh. The opening ceremony was attended by Abdullah bin Mohammed Al-Rawaf, chairman of Arqah, as well as Deputy Police Commissioner Gazy Al-Mahya, in the presence of Ibrahim Abdulaziz Al-Jammaz, CEO of Alamar Foods. In attendance also was upper management of Domino’s Pizza both local and international, and many of Domino’s customers. Alamar Foods is one of the earliest master franchise companies operating within the Domino’s Pizza global system, having opened its first store in 1992. Today, Alamar Foods and its affiliates own operating rights to Domino’s Pizza in Saudi Arabia, the UAE, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Pakistan, and Qatar. Domino’s Pizza EVP International Richard (Ritch) Allison, was on hand to mark the milestone opening.
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FEBRUARY - MARCH 2013
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Expo Coverage
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REGIONAL NEWS
Elevation Burger opens in Dubai UAE | Elevation Burger, the organic delicious burger, opened its doors on the 15th of January 2013 in Latifa Towers on Sheikh Zayed road - next to Crowne Plaza Dubai. The grand opening was attended by the U.S. Consul General Rob Waller, U.S Vice Consulate Kristen J.Hughes, Chairman of Elevation Burger UAE Walid Al Baejan, CEO of Elevation Burger UAE Khaled Al Dhubaib and representatives from the leading media houses. Elevation Burger serves 100% organic burgers made from 100% grass-fed beef and fries cooked in olive oil. Not only do the burgers taste great but, even the meals are better with less fat and fewer calories than other burger chains. Elevation Burger UAE Facebook page is final advert half page1.pdf
9/20/2012
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already live - thousands of burger fans have already registered to book their free burger tasting invitation between January 16 and 20, 2013. Khaled Al Dhubaib said, “Elevation Burger will be the most happening burger place in Dubai, it has been the favorite wherever it has opened before. We are delighted to bring this excellent dining option to UAE after the success in Kuwait, Bahrain, Qatar and Saudi Arabia. Eating organic doesn’t mean you have to completely change your lifestyle. Elevation Burger lets you eat better-for-you, organic meat without sacrificing taste.” Elevation Burger believes in the philosophy that fast food doesn’t have to mean junk food. Elevation Burger offers parents to give kids
delicious meals they’ll love and can feel good about - it’s the same quality of food that is prepared at home. All of Elevation Burger’s patties are hand-made and freshly grinded daily in the restaurants by people who care.
4:27:03 PM
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Expo Coverage
Groundbreaking Initiative to Finance International Franchising in Tunisia
An exciting new initiative is moving forward without much notice by the international franchising community. For those who have focused on it, its unique features have quickly made it top-of-mind. The Overseas Private Investment Corporation, the international development arm of the U.S. Government, has agreed to institute a financing program which has the potential to alter the financing of international franchise expansion. In partnership with the Middle East Investment Initiative, a non-profit organization which has pioneered the financing of small and mediumsized businesses in that region, it has agreed to
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guarantee loans to non-US businesses to enable them to – • Acquire US franchises • Operate them • Produce goods and services to supply the franchises • Establish businesses as franchisors The project will begin in Tunisia, and will focus on the development of franchising as a method of doing business there. Why Tunisia? Because when the Arab Spring began there, the US Department of State established a “partnership” with that country to raise the level of economic development.
Why franchising? Because when the State Department asked the Tunisians what they needed, they responded “Franchising”. What does this mean for the prospects for franchising in such a country? It means that franchisors can enter the marketplace with a much greater sense of confidence, because their franchisees will to a large degree have the backing of the US Government – something we have never seen anywhere outside the United States. What does it mean in other parts of the world? OPIC and MEII have made it clear that if this project develops as hoped, it will serve as a template for other countries.
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Expo Coverage
Tunisia, an Untapped Market for US Franchises Tunisia, located on the southern shore of the Mediterranean just opposite Italy, is at the crossroads of Europe, Africa, and the Middle East. Tunisia has a domestic market of over 10 million people with a GDP per capita (PPP) of $9,698 in 2012 as well as a strong history of universal education and gender equality. Further, its strategic location in the middle of North Africa and strong business climate, ranked best in the region for doing business by the World Bank, offer the potential to access a broader regional market. Finally, recent legislation has formally defined franchising for the first time creating the necessary legal and regulatory framework for franchising to flourish. Tunisia has few franchises outside the
tourism sector and US franchises are underrepresented. The recent franchising law and the new political and business climate, along with an IFA supported innovative financing facility, hope to change this. Currently, a few clothing retail franchises such as Benetton, Guess and Zara can be found in Tunis. Retail grocery giant Carrefour is building a bigger footprint as well. Much of the rest of the market has little to no franchise presence, including the food and beverage sector. Currently, the food and beverage sector is unique in that franchises need government approval to operate (other sectors do not need government approval). That said, the Tunisian government is currently exploring how to reform existing
laws to remove the individual approval for the food and beverage sector to fully liberalize the market. To learn more, listen to recent Webinar (and access the slides) hosted by the IFA on Franchising in Tunisia. Contributors include IFA members, an existing franchisor and a franchisee in Tunisia, the organizers of the upcoming Tunis-Med Franchise conference from February 27 – March 1, and the implementers of an IFA supported innovative financing facility for franchises in Tunisia. There is still time to sign-up to attend the Tunis-Med Franchise conference at the end of February where the IFA will participate.
Franchise Expo Paris - the international hub
From 24th to 27th March 2013
Franchise Expo Paris is the only franchise show whose specific setting and decorated stands help the entrepreneurs to find their best match. www.TheFranchiseMagazine-mena.com
Franchise Expo Paris is the international hub connecting investors from 83 countries with the most renowned franchisors looking to expand their concept worldwide. Franchise Expo Paris is recognized as the world leading and most diversified franchise exhibition with more than 450 franchisors and more than 32 334 ready-to-invest entrepreneurs. The entire international franchise community including consultants, lawyers, bankers, franchise associations, retail real estate developers converge in Paris to exchange ideas, create new relationships and discuss franchise business opportunities. Franchise Expo Paris is the leading marketplace where investing entrepreneurs can identify and meet the top 450 franchise systems, from 75 industry sectors, looking for their exclusive business partners. This 4 days show & forum will provide you every information about master franchise and network development so that you can maximize your one-to-one meetings. • 100 talks and workshops led by franchise and business start-up specialists • Coaching area to support visitors with their business startup plans
FEBRUARY - MARCH 2013 | 13
Expo Coverage
International Franchise Conference
The International Franchise Conference will cater for anyone looking at franchising in the international arena. Franchise experts, consultants and lawyers will guide you through the processes and give you the necessary skills and advice you need to start franchising internationally. If you fall into any of the categories below you should attend International Franchise Conference on 15 & 16 March 2013:
• You are considering becoming a UK master franchisee of an international brand • You considering becoming an international master franchisee of a UK brand overseas • You own a franchise that you are considering launching into the UK • You own a business in the UK that you are considering expanding overseas
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REGIONAL NEWS
LEGAL
LEGAL
FrAnchisE MiddlE EAst AwArds 2012 DEcEMbEr 2012 SOON... COMING Shangrila hotel | Sheik Zayed road | Dubai
Join us as we recognise the industry excellence at the 1st annual franchise Middle East Awards
For table bookings, sponsorship or nomination enquiries please contact The Franchise magazine -MENA Tel: +971 4 3042510 Email: steve@thefranchisemagazine-mena.com - FEBRUARY 2012 8 | JANUARY www.TheFranchiseMagazine-mena.com
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LEGAL
Cross Border Franchise Disputes By Rima Jameel from JBLegal
When entering into the world of international franchising, one of the key issues to be addressed, understood, documented and filed away until the needed, is how to handle cross border franchise disputes. Franchisors and Franchisees do not enter into a relationship expecting the worst, but the parties must be aware of how deal with the worst when and if it occurs. This Article will address jurisdiction options including the enforceability of judgments/awards as well as provisions that can be included in a franchise agreement to keep litigation or arbitration as a last resort option.
the judgment is sought to be enforced. Even if there is a treaty in place, typically in order
through the United National Convention on the Recognition and Enforcement of Foreign Arbitral
for a foreign judgment to be enforced most countries
Awards 1958 (“the New York Convention”). The
require that certain conditions are satisfied. The
nationality of the award will be determined by the
biggest hurdle is usually the fact that the local courts
“seat” or “place” of arbitration. Provided that the seat of
will not recognise a foreign judgment in circumstances
arbitration was in one of the 144 signatory states, and
where it would have had jurisdiction over the matter.
provided that the relevant conditions are met, then the
In the Middle East countries , the local courts are
award should be enforced by the local courts.
typically granted jurisdiction to hear all actions
The relevant conditions for enforcement are set out
brought against individuals or companies having an
in Article IV(1) of the New York Convention. The party
address or place of residence in the relevant country.
applying for enforcement must provide: (a) the duly
An application for the ratification and enforcement
authenticated original award or a duly certified copy
of a foreign judgment must be accompanied by
thereof; the original agreement referred to in Article
evidence including proof that the judgment is final and
II or a duly certified copy thereof. The award and the
not subject to any appeal (usually in the form of expert
agreement must also be made in the language of the
evidence from a practitioner in the foreign country),
country in which the award is relied on, or a certified
While the governing law and jurisdiction for resolving
proof that the defendant was duly summoned (in
translation must be supplied (Article IV(2)). If these
a dispute between franchisor and franchisee will be
accordance with service procedures of the country of
conditions are met, the courts of any other member
a matter for negotiation, most franchisors prefer to
domicile of the franchisee) and represented during
state must enforce the award without amendment, as
nominate jurisdiction to courts wherein the franchisor
the hearing, and evidence that the country where the
if it was a judgment of its own.
is domiciled. The franchisor feels more comfortable
judgment originated has a reciprocal arrangement
on its own turf and may assume that a more
with the relevant country.
Jurisdiction Options
favourable result can be achieved. This is not always
Therefore, before a franchisor accepts the law and
If the award is rendered in a non-signatory state, or in a state which does not have specific treaty agreements with the franchisor’s country of domicile,
the best solution, especially when trying to enforce
jurisdiction of its country of domicile, it determine
then the arbitration award is unenforceable. It should
against a franchisee.
(a) if there is a treaty in place with the target country;
be noted that some countries may have included
and (b) if yes, what are the procedures and chances of
certain reservations when signing the New York
enforcing the judgment.
Convention, which may include additions terms and
In such a case, careful thought must be given to the enforcement of the court judgment. Enforcement of foreign judgments in a country is regulated by its
An alternative the enforcement of a judgment
laws. In many countries, foreign court judgments are
issued by a court is to include a provision for
difficult to enforce, especially in the absence of a treaty
arbitration in the franchise agreement. A foreign
between the foreign country and the country wherein
arbitral award has the advantage of being enforceable
16 | FEBRUARY - MARCH 2013
conditions which will impact the enforcement of the foreign arbitral award in that jurisdiction. If a country is a signatory to the NY Convention, the procedure for enforcement of the foreign
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LEGAL arbitral award should be simply a matter of the local
judgment is deemed enforceable, finding assets on
the perceived prejudices against foreign entities taking
court confirming that the relevant conditions for
which to execute a judgment/award and maintaining
action against local entities, or the lack of sufficient
enforcement as set out in Article IV(1) of the New York
the market without damaging the brand during the
legal advice regarding the local courts or arbitration
Convention have been met. Unfortunately, it is not
lengthy period of litigation is another issue to be
system.
always this simple. In many jurisdictions, the courts
considered.
will only ratify the judgment after ascertaining that certain conditions have been satisfied, some of which many include the following:
Jurisdiction of the Franchisee/ Master Franchisee
• The arbitration panel had the jurisdiction and competence to hear and decide the case; • The parties were properly served and represented in the hearing;
dispute arises, the claimant starts to seriously think about issues regarding the action when they are forced to deal with issues of service, lack of responsiveness
• The local court did not itself have the competence or jurisdiction to hear the case;
However, this option should not be ruled out however. More often than not we find that when a
Another option which is not always welcomed by
from the defendant to actions being taken in the
franchisors is to select the jurisdiction of the franchisee
jurisdiction agreed in the contract, the substantial
as the venue for litigation or arbitration. Franchisors,
funds to be spent on litigation or arbitration, the
justifiably, are concerned about taking in action in the
length of time and effort; and in the end being
jurisdiction of the franchisee for fear of the unknown,
faced with the risk of not being able to enforce the
• The judgment is based on the merits, in conformity with the lex fori and is final (res judicata); and • It was not contrary to public policy or to a previous court judgment. Care must also be taken in selecting a jurisdiction for the arbitration. Many parties agree to select what they deem to be a ‘neutral’ jurisdiction. In this case, there is also a risk that the local courts may only recognise a choice of law other than the law of the jurisdiction of the parties if they are satisfied that there exists an appropriate nexus between the contract expressed to be governed by such law and the foreign law system chosen. Further, in many of the Gulf Cooperative Countries, or countries based on Shari’a law, the courts will not honour any provision of any foreign law system they recognise as validly chosen if such provision is contrary to Islamic Shari’a, public order or morals or to any mandatory law. Finally, it is important to note that, in many countries wherein a franchise relationship is viewed as a commercial agency and are governed by relevant Commercial Agency Law, and such laws were not applied in issuing the Arbitration Award, the local Courts can reject the Award on the grounds that the local Courts have jurisdiction as the relationship is governed by a law particular to that jurisdiction. In general, arbitration is a better option than the courts if the jurisdiction of each party is a signatory to the NY Convention, however, it does not guarantee that the award will be enforced with ease or at all. It is also important to note that arbitration also preserves confidentiality over the proceedings, a result which cannot be ensured by litigating in a trial court. The drawbacks of arbitration are most notably, the lack of appeal process and a considerable cost that is often similar to the cost of litigation if not higher. Provided all goes as expected, and the award or
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FEBRUARY - MARCH 2013 | 17
LEGAL
judgment. Then the claimant is confronted with this
or failure of the master franchisees or developers
Payment Guarantees: A common problem faced
reality, they start to search for ways to take action in
to meet the development schedule in the franchise
by franchisors is collecting royalty payments. Many
the jurisdiction of the respondent- but find that the
agreement. Often the development schedule is
franchisors include a personal or corporate guaranty
agreement does not provide for this option. If they
arbitrary and is not based on the actual potential in
as part of the franchise agreements. Unfortunately
proceed to take action in the jurisdiction, despite the
the local market. Further the delays which may arise
these can be rendered worthless if the guarantor
terms of the agreement, they run the risk that the local
due to local laws, compliance and regulations are
has no assets of value. The franchisors goal is to
courts will reject the claim on the basis of the terms
not addressed adequately. Ways to address this issue
obtain payment; not to end up in litigation to collect
agreed in the agreement.
fairly is to agree on a development schedule backed
payments due. An option would be to secure a bank
by a business plan provided by the master franchisee/
guarantee or letter of credit to allow the franchisor to
is required on an urgent basis, proceeding in the
developer so as to agree on a schedule which is realistic
draw down on funds in the event payments are not
jurisdiction of the franchisee may be the only option
and capable of being met within the defined time lines.
made. While franchisees may object to the idea of the
to obtain the relief and protection necessary. While
This may also assist in determining if the development
bank guarantee or letter of credit due to the cost of
the jurisdiction of the franchisee may not be the best
schedule is insufficient for the market demand in the
maintaining the same, it does serve as a deterrent to
option, it must be an option that is studied carefully
territory. In addition, rather than termination of the
non-payment and will save both parties far more in
prior to being rejected.
agreement, alternative solutions can be included in the
legal costs than the cost of securing the guarantee or
agreement such as payment of a shortfall payment for
letter of credit.
Furthermore, in cases where injunctive relief
While governing law and jurisdiction is not an issue that is pressing at the time of signing a franchise
royalties for that would have been due had the master
agreement, it is an issue that the parties must seriously
franchisee/developer met its obligations, or a fee for an
Follow up Training and Inspections:
consider. The contract is drafted to protect the parties;
additional extension in order to meet the development
The main reason franchises fail is due to insufficient
if the parties cannot enforce it, it loses its ability to
obligations. Other solutions would be to reduce the
training or failure to comply with obligations
protect the parties efficiently and effectively.
geographic territory; reduce the number of units to
under the franchise agreement or in the manuals.
be developed, or forfeiture of exclusivity rights. These
Conducting follow up training and regular
remedies do not terminate the contract, but allow the
inspections can help arrest a problem before it
parties to continue the relationship within terms that
becomes unmanageable for both parties and beyond
Litigation or arbitration should be viewed as a last
are achievable for the master franchisee/developer
reconciliation.
resort in trying to resolve a dispute between franchisor
without losing the investment already made and in a
and franchisee. The parties, instead, should focus on
manner that ultimately benefits both parties.
Minimizing the Risk of Disputes
finding deterrents for breach or more cost and time
Penalties for Breaches: Rather than proceeding to termination or the threat of termination, including
Subfranchise Agreements: Problems often
provisions for penalties payable for certain breaches
occur when there is a termination of a master
may serve as a deterrent to keep franchisees in
franchise agreement that can assist in deterring
franchise and the franchisor is left trying to manage
compliance. Franchisees want to avoid additional
or providing a solution for common problems
franchisees under existing subfranchise agreements.
payments and the knowledge that these may be
encountered in franchising.
Provisions to be included to protect the franchisor
imposed will force them to comply or request
include the right to step into, amend or assign the
additional support from the franchisee if they are
subfranchise agreements.
having trouble in operating the franchise to the
efficient ways to resolve disputes. There are provisions that can be included in the
Development Schedule. One of the main disputes encountered in franchising arises from the inability
18 | FEBRUARY - MARCH 2013
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LEGAL
standard required. These would include penalties
can create market exclusivity where none was
the parties and can be helpful in addressing cultural
for not complying with operations manuals, late
provided, and or prevent the exporting of goods into
differences between the parties. Furthermore, the
payments, failing inspections, etc.
the country. Other approaches to reducing the risk
process of mediation is more flexible and is more cost-
of agency laws include obtaining, a letter of credit
efficient than proceeding to arbitration or litigation.
Liquidated Damages: While it is difficult to
or bank guaranty to subsidize any compensation
Mediation can assist the parties by bridging the gap
determine the damages that would be sustained in
payment, and a right to execute on a security interest
through meaningful discussions lead by an objective
the event of default, including liquidated damages
in the franchisee’s ownership, including voting rights
party. At the conclusion of the mediation, the parties
which are reasonable and can be defended can
or a right to exercise an option to obtain control of the
may agree on a settlement or agree to continue with
serve as a deterrent for breach and keep the parties
franchisee’s assets.
the relationship with a renewed understanding. If they are unable to resolve the dispute, either party is still
at the negotiation table to achieve an amicable resolution. Liquidated damages can be provided for
Language: The agreement should be drafted only
defaults including, breach of confidentiality, failure
in the language of the franchisor. Any translations for
to compliance with transfer restrictions, breach of
local use should be approved by the franchisor. If the
franchising, care must be taken to ensure that the
reporting obligations, and some post-termination
agreement is translated to a local language, reference
agreement is appropriate and will withstand the
obligations.
should be included that in the event of conflict in
potential issues that arise when dealing with cross
translations, the original text should prevail.
border transaction. In this respect, forethought, good
Registration Requirements: In countries
Before entering into the world of international
counsel, an understanding the local law and cultures,
wherein a franchise is considered a commercial
Dispute Resolution: Another method to resolve
agency, provisions should be included to specifically
disputes before proceeding to litigation is to include
address that the agreement is not a commercial agency
a provision for mediation. Mediation can be set in
and shall not be registered. Franchisee protection
the jurisdiction of either party by an independent
under the agency laws may make termination of the
mediator experienced in franchising. The mediation
franchise agreement substantially more difficult,
terms can be customized to the requirements of
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free to proceed with litigation or arbitration.
and careful planning will be the most important tools.
For more information, please call 00961 704 33 084
FEBRUARY - MARCH 2013 | 19
COUNTRY PROFILE
Country Fact Sheet: Malaysia The Franchise Magazine - MENA examines the franchise market in Malaysia
M
alaysia is located in Southeastern Asia on the southern tip of the peninsula bordering Thailand just north of Singapore and on the northern part of the Island of Borneo bordering Indonesia, Brunei, and the South China Sea. It is slightly larger than New Mexico and covers an area of 329,750 sq. kilometers. Malaysia’s total population is about 25.7 million and growing at about 1.723% with 70% living in urban areas. The Malaysian capital of Kuala Lumpur has a population of about 1.5 million with other major cities including Klang (631,000), Johor Baharu (630,000), and Ipoh (574,000). The people are governed by a constitutional monarchy and
Demographic Data: Area (sq. Km): 329,750 Population (mil.): 25.7 Pop. Growth: 1.723 % Agricultural Workers: 10%
Industrial Workers 44% Service Workers 46% Labor Force (mil) 11.2 Economic Data: GDP (PPP, $bil.): 386.6
are mostly Muslim, but also including a mix of Buddhist, Christian, Hindu, and other traditional Chinese religions. The primary language is Malay, but due to the diverse nature of the country many people speak English, different Chinese dialects, Tamil, and other Native languages. The local currency used is the Malaysian Ringgit. Malaysia has an emerging, export based economy that has greatly improved since the 1970s when it was solely a producer of raw materials. The governments goal is to attract investment in high technology, but exports, mainly of electronics, gas, and oil, are currently the focal points of its economy. Its main trade partners are the US,
GDP Real Growth: 5.1% Per Capita GDP ($): 15,300 Inflation Rate: 5.8% Unemployment: 3.7% Exports ($bn): 195.7
Japan, China, Singapore, Thailand, Hong Kong, Taiwan, South Korea, Germany, and Indonesia. Its primary imports are electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, and chemicals. Exports consist of electronic equipment, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, and chemicals. Malaysia’s GDP (Purchasing Power Parity) is $386.6 billion and is growing at a real rate of 5.1% with an inflation rate of 5.8%. Malaysia ranked 21rd out of 183 countries in the World Bank Group’s Ease of Doing Business Ranking.
Imports ($bn): 156.2 Cultural & Other Data: Capital: Kuala Lumpur Primary Language: Malay Urban Population: 70%
Urban Growth: 3% Literacy: 88.7% CPI Score (1-10)* : 5.1 Currency Exchange Rate 07/14/11: $1 = 3.004 MYR
* CPI Score is published by Transparency International and relates to the perceptions of the degree of corruption as seen by business people and country analysts and ranges between 10 (highly clean) and 0 (highly corrupt). **Ease of Doing Business Ranking is determined by the World Bank Group and is ranked out of a possible 181 countries. Most recent statistics have been taken from the CIA World Factbook unless noted otherwise.
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ACE HARDWARE INTERNATIONAL
SPECIAL REPORT
Ace Hardware International Signs Afghanistan License Agreement with Safi Global The helpful place is set to expand its presence in Afghanistan. The license agreement has been awarded to Safi Global, one of Afghanistan’s most valuable and respected businesses. The Government of Afghanistan previously awarded the SAFI GROUP OF COMPANIES with the “Best Businesses House Award” from 1986-1991. The signing of the Ace license agreement marks the first American Franchise agreement in Afghanistan and underscores the successful redevelopment efforts underway in Afghanistan. “Our decision to expand into Afghanistan was strategic and I’m thrilled to welcome Safi Global into the Ace family; Ace continues to successfully expand in the Middle East and Northern Africa with recent signings in Iraq, Bahrain and Egypt,” said Alberto Vidal, Ace Hardware International Business Development Director. The development plan within the agreement calls for a minimum of 15 Ace stores to open within the first 10 years. The first store is planned to open in June 2013, and will be located in the fourth largest city in Afghanistan, Mazar-i-Sharif.
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“At Ace Hardware International, our mission is to be the best provider of products, services and operating methods to our international retailers.” George Mokbel Ace Hardware International General Manager- Middle East & North Africa
FEBRUARY - MARCH 2013 | 21
SPECIAL REPORT
ACE HARDWARE INTERNATIONAL
Message from MENA General Manager-George Mokbel As the largest home improvement franchise company, Ace Hardware consistently provides its international retail partners with ideal entrepreneurial elements, starting with a globally recognized brand, operational flexibility, market exclusivity and a global distribution network. In 1968, Ace began to expand into the international market, opening a store on the island of Guam. In 1990, Ace developed the infrastructure needed to actively pursue international markets and by the turn of the century, Ace announced an expanded growth strategy designed to build the retailers’ business and deliver a consistent, helpful experience with every customer on the planet. In 2006, Ace International opened a global distribution warehouse in Shanghai, China, the first company in the home improvement industry
22 | FEBRUARY - MARCH 2013
to do so. And to support the growing number of international retailers, Ace Hardware history continues to be written today on a global scale as Ace International Holdings Ltd., formed as a separate company in 2011 and expanded even more with the opening of distribution centers in Dubai, Panama, and China. In business since 1924, there are more than 4,500 Ace Hardware home improvement stores in over 60 countries, and we continue to grow every day.
For more information on international investment opportunities with Ace Hardware International, please contact Megan Scharf at
E: mscha@acehardware.com T: 630-990-8820
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o sell my hise – S help?”
“I’m considering owning a franchise – can FDS help?”
FDS NEW SIGNING “I’m thinking of expanding globally – can FDS help?”
CAN!
roviding advice anchisors and
our business, Contact us today sing.
DS UAE can help! client testimonials: youtube.com/fdsfranchise
UNITED ARAB EMIRATES
CLASSIC BURGER JOINT SIGNS WITH FRANCHISE DEVLEOPMENT SERVICES
Classic Burger Joint Lebanon, a 3-year old company established concept from Ministry of Food based in Beirut have signed an agreement with FDS –UAE to help develop there franchise development programme. MANAGING DIRECTOR of FDS UAE says – I am delighted to be working with Donald and the team at CBJ, after my first visit to see the business operations I found a very level of professionalism from all the staff on the ground floor to management level. The product is exceptional and very popular at all the loations. I think CBJ
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will be a great competitor for some of the larger International brands and I’m looking forward to representing Donald and the team at MOF (Ministry of Food).
through the GCC and overseas. The company prides itself on good quality international burgers with there own recipies from the bun, sauces and burgers. All products have been sourced locally.
CBJ who operates in Beruit have currently 7 stores in its home country and are looking to expand
For more information, please call 043042510
FEBRUARY - MARCH 2013 | 23
INTERVIEW
Q&A
with Ms. Sarah Cole, Marketing Manager, Linguaphone Group
The franchise market is very positive in the Gulf region currently. How would you describe the market for the Linguaphone Group? The Linguaphone Group is a global language training provider, operating under the internationally recognised Linguaphone, Direct English and Pingu’s English brand names. With over 109 years of experience, the Group has an extensive network of licensed partners across Asia, Europe, the Middle-East and Africa Over the last 15 years, the UK-based Linguaphone Group has developed a strong tradition of working with franchise partners to build our renowned Direct English language training program for adults across the Gulf, with successful operations in the Kingdom of Saudi Arabia, UAE, Qatar.
In the last year, we have also introduced our Pingu’s English Master Licensee program to the Gulf; offering a new franchise opportunity for entrepreneurs keen to capitalise on the lucrative pre-school English language training market across the Gulf using our program. Building our presence across the Gulf is a key part of the Linguaphone Group’s export expansion strategy for the Middle East. We have therefore been delighted to see an unprecedented level of interest in Pingu’s English here in the last six months, and have already appointed new Master Licensee partners for Kuwait and the UAE.
From your extensive experience in the education training market, why do you think your programs will continue to be a success and where do you see the vision for the future going?
We firmly believe that our three-level Pingu’s English program will revolutionise the way children learn English in the Gulf and further afield, because it combines one of the world’s bestloved television characters with the experience of one of the world’s leading language training providers. We put our success so far down to a robust and rigorous training methodology, strong partners and a first-class customer service led ethic. Parents are increasingly spending a significant proportion of their income to ensure their child gets a good head start in life. Governments too appear to be moving towards investing more in preschool education provision, as well as providing opportunities for investors to exploit within the pre-school sector. We therefore believe that the future for Pingu’s English and the children’s English training market in the Gulf and the wider MENA region is very strong.
With the Pingu’s English franchise please explain what separates you from the competition? In terms of the program itself, what makes Pingu’s English unique is that it focuses on building a child’s confidence and ability in the English language, acknowledging that every child learns in a different way. We use a wide range of resources and activities to develop skills in not just reading English, but writing, speaking and listening to it, too. Crucially Pingu’s English focuses on a child’s ability to structure actual sentences rather than single words. Pingu’s English is also more than just an English language program; we develop skills in socialisation, numeracy and computer skills, too to
24 | FEBRUARY - MARCH 2013
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INTERVIEW
WHAT’S MORE! The Linguaphone Group have also recently agreed a global collaboration with the University of Cambridge (ESOL) that all Pingu’s English partners can apply to become an official Cambridge ESOL center and offer their world renowned qualification when they complete the Pingu’s English course. help them prepare for formal education. And our program succeeds because it is very much driven by a play-based approach to learning – when children are having fun they are much more likely to learn. For our partners, we offer multi-channel exclusivity in a territory, flexible business models and a comprehensive package of business and marketing support. With Pingu’s English, our appointed partners can leverage the recognised brand name of Pingu’s English and the Linguaphone Group, as well as all of our proven business models, know-how and learning systems. By becoming a Master Licensee with the Linguaphone Group, partners will receive all the marketing and business support of an international franchise, but with the flexibility that an exclusive license offers to develop a business model that is right for a given market.
What are you looking for in an investor or Franchisee ( Master Licensee) and how will you support them in the MENA region? We’re looking for serious investors with the necessary experience, resources and vision to represent us across the Gulf. Our Pingu’s English Master Licensees don’t necessarily have experience in the education market. But we are looking for ambitious and enthusiastic entrepreneurs who wish to develop Pingu’s English, and are prepared to work hard to achieve success. Comprehensive marketing and business support is provided by our team of professionals at HQ, not just when a partner launches but on an ongoing basis. From in-country training to management manuals and first class business and marketing consultancy, we’re with our partners every step of the way to help them launch and grow their business.
What sort of investment might a Franchisee expect in terms of initial outlay and ongoing costs? Partners will need to have the investment to pay a one-off license fee, as well as royalty, payment for stock and of course set-up and ongoing costs for the business. The overall cost will vary greatly depending on the size of the market, agreed business models and access to existing infrastructure and HR / marketing resources.
About Pingu English Pingu’s English is a three-level pre-school English language program, offering an array of creative learning activities and exercises using high quality, multimedia materials and teaching resources. Each student will take advantage of DVDs, study books, song and story books with CDs plus interactive online learning materials developed by leading English language and child education specialists. Students will also use an activity pack which includes supplementary materials such as character figurines, coloring materials and friezes. There are also extensive teaching resources to assist teachers with each child’s learning and development. Pingu’s English is delivered through a network of Master Franchisees in China, Cyprus, Czech Republic, Egypt, India, Indonesia, Italy, Malaysia, Poland, Portugal, Romania, Russia, Singapore, Thailand, the Ukraine and UAE. Pingu’s English Kuwait will launch in February 2013. Despite being in the market only for a few years, Pingu’s English is operating in over 15 countries worldwide already. Our network of successful partners, who already reaping the rewards of this franchise opportunity, are growing with new countries opening up all the time.
For more information visit www.pingusenglish.com or email opportunities@pingusenglish.com Linguaphone Group The Linguaphone Group is a global language training provider, operating under the internationally recognised Linguaphone, Direct English and Pingu’s English brand names. With over 109 years of experience, the Group has an extensive network of licensed partners across Asia, Europe, the Middle-East and Africa. The Group has also helped millions of people learn a new language through their wide-ranging portfolio of self-study products sold in over 60 countries worldwide.
www.linguaphonegroup.com www.TheFranchiseMagazine-mena.com
FEBRUARY - MARCH 2013 | 25
UNITED ARAB EMIRATES
FDS announces expansion into the UAE Franchise Development Services is pleased to announce the successful expansion of its international network with the launch of its United Arab Emirates RIÀFH ZKLFK ZLOO EH XQGHU WKH direction of Stephen O’Donovan. The United Arab Emirates is one of the ŚŽƩĞƐƚ ĨƌĂŶĐŚŝƐĞ ŵĂƌŬĞƚƐ ŝŶ ƚŚĞ ǁŽƌůĚ ďŽƚŚ ďLJ ǁĂLJ ŽĨ ƚĞŵƉĞƌĂƚƵƌĞ ĂŶĚ ŽƉƉŽƌƚƵŶŝƚLJ ĨŽƌ ƐŽŵĞ ŽĨ ƚŚĞ ǁŽƌůĚ͛Ɛ ŵŽƐƚ ĨĂŵŽƵƐ ďƌĂŶĚƐ ƚŽ ĞƐƚĂďůŝƐŚ Ă ŇĂŐƐŚŝƉ ƐƚŽƌĞ ŝŶ ƚŚŝƐ ŵŽƐƚ ǀĂůƵĂďůĞ DŝĚĚůĞ ĂƐƚ ŵĂƌŬĞƚ͘ dŚĞ h ŽīĞƌƐ ŐƌĞĂƚ ĨƌĂŶĐŚŝƐĞ ŽƉƉŽƌƚƵŶŝƟĞƐ ŝŶ ƚŚĞ ŵĂƌŬĞƚ ƚŚĂƚ ƐƚĞĂĚŝůLJ ŚĂƐ ďĞĞŶ ĂĐŚŝĞǀŝŶŐ Ă Ϯϱ ƉĞƌ ĐĞŶƚ ŐƌŽǁƚŚ ƌĂƚĞ ƚŚƌŽƵŐŚ ϮϬϭϮ͘ YƵĂůŝƚLJ ďƌĂŶĚƐ ĨƌŽŵ Ăůů ŽǀĞƌ ƚŚĞ ǁŽƌůĚ
ŝŶĐůƵĚŝŶŐ h< ďƌĂŶĚƐ Boots, WHSmiths and Thorntons, ŚĂǀĞ ĂůƌĞĂĚLJ ůĂŝĚ ƐŽůŝĚ ĨŽƵŶĚĂƟŽŶƐ ĂŶĚ ƉƌŽǀĞŶ ƉƌŽĮƚĂďůĞ ƚƌĂĐŬ ƌĞĐŽƌĚƐ ƚŚĂƚ ƚĂŬĞ ĨƵůů ĂĚǀĂŶƚĂŐĞ ŽĨ ƚŚĞ h ďĞŝŶŐ Ă ĚĞƐƟŶĂƟŽŶ ĨŽƌ ƚŚĞ ĞŶƟƌĞ DŝĚĚůĞ ĂƐƚ ŵĂƌŬĞƚ ƚŽ ǀŝƐŝƚ ĨƌĞƋƵĞŶƚůLJ͘ tŝƚŚ & ^ h ŶŽǁ ĞƐƚĂďůŝƐŚĞĚ͕ ǁĞ ĐĂŶ ĚĞůŝǀĞƌ ĞdžƉĞƌƚ ĂĚǀŝĐĞ ĂŶĚ ŐƵŝĚĂŶĐĞ͕ ƉƌŽǀŝĚĞ ůŽĐĂů ŬŶŽǁůĞĚŐĞ ĂŶĚ ƵŶĚĞƌƐƚĂŶĚ ƚŚĞ ĂďŝůŝƚLJ ƚŽ ŵĂŬĞ ŚŝŐŚͲůĞǀĞů ŝŶƚƌŽĚƵĐƟŽŶƐ ƚŽ ĞƐƚĂďůŝƐŚĞĚ ŽƌŐĂŶŝƐĂƟŽŶƐ ĂŶĚ ĨƌĂŶĐŚŝƐĞ ĞŶƚƌĞƉƌĞŶĞƵƌƐ ƐĞĞŬŝŶŐ ƚŽ ĂĐƋƵŝƌĞ ĂŶĚ ĚĞǀĞůŽƉ ĨƌĂŶĐŚŝƐĞ ďƌĂŶĚƐ ƚŽ ƚŚĞŝƌ ĨƵůů ƉŽƚĞŶƟĂů͘ tŝƚŚ Ă ƐƵĐĐĞƐƐĨƵů ƚƌĂĐŬ ƌĞĐŽƌĚ ŽĨ ĨĂĐŝůŝƚĂƟŶŐ ƐƵĐĐĞƐƐĨƵů DŝĚĚůĞ ĂƐƚ ĨƌĂŶĐŚŝƐĞ ĚĞǀĞůŽƉŵĞŶƚ͕ ŐŽŝŶŐ ďĂĐŬ ƚŽ ϭϵϴϱ ǁŚĞŶ ǁĞ ǁŽƌŬĞĚ ǁŝƚŚ Mothercare and the Alshaya
Group, ǁŚŽ ĂƌĞ ŶŽǁ ŽŶĞ ŽĨ ƚŚĞ ǁŽƌůĚ͛Ɛ ůĞĂĚŝŶŐ ĨƌĂŶĐŚŝƐĞ ďƌĂŶĚ ŽǁŶĞƌƐ ĂŶĚ ĚĞǀĞůŽƉĞƌƐ͕ ǁĞ ĂƌĞ ŝŶ Ă ƐƚƌŽŶŐ ƉŽƐŝƟŽŶ ƚŽ ĂƐƐŝƐƚ ŐĞŶƵŝŶĞ ƵƐŝŶĞƐƐ &ŽƌŵĂƚ &ƌĂŶĐŚŝƐĞ ďƌĂŶĚƐ ƚŽ ĞƐƚĂďůŝƐŚ ĂŶĚ ĚĞǀĞůŽƉ ǁŝƚŚ ƐŽŵĞ ŽĨ ƚŚĞ ǁŽƌůĚ͛Ɛ ďĞƐƚ ĨƌĂŶĐŚŝƐĞ ĚĞǀĞůŽƉĞƌƐ͘ & ^ h ǁĞůĐŽŵĞƐ ĂŶĚ ůŽŽŬƐ ĨŽƌǁĂƌĚ ƚŽ ǁŽƌŬŝŶŐ ǁŝƚŚ LJŽƵ ŝŶ ŽŶĞ ŽĨ ƚŚĞ ŵŽƐƚ ĞdžĐŝƟŶŐ ĨƌĂŶĐŚŝƐĞ ƌĞŐŝŽŶƐ ŝŶ ƚŚĞ ǁŽƌůĚ͘ For further information FRQWDFW 6WHSKHQ 2·'RQRYDQ Managing Director of FDS UAE t: +971(0)4 304 2510 e: steve@fdsuae.com w: fdsfranchise.com
Become a part of the international FDS franchise network FDS UAE
Steve O’Donovan Regional Director
FDS Anglia
Paul Hague Franchise Consultant
FDS London
Nick Williams Franchise Consultant
FDS South East
Malcolm Porter Regional Director
FDS Southern
Gary Rigby Regional Director
FDS Australia
FDS Midlands
Mike Fuller Regional Director
Ken Young Regional Director
FDS North
FDS Spain
Tony Urwin Regional Director
&ƌĂŶĐŚŝƐĞ ĞǀĞůŽƉŵĞŶƚ ^ĞƌǀŝĐĞƐ >ƚĚ ŚĂƐ ƉůĂLJĞĚ Ă ŵĂũŽƌ ƌŽůĞ ŝŶ ĚĞǀĞůŽƉŝŶŐ ŝŶƚĞƌŶĂƟŽŶĂů ĨƌĂŶĐŚŝƐŝŶŐ ĂĐƌŽƐƐ ƚŚĞ ǁŽƌůĚ ƐŝŶĐĞ ϭϵϴϭ͘ tŝƚŚ ŽǀĞƌ ϯϬ LJĞĂƌƐ ŽĨ ĞdžƉĞƌŝĞŶĐĞ ŝŶ ĚĞǀĞůŽƉŝŶŐ ĂŶĚ ŵĂŶĂŐŝŶŐ ĨƌĂŶĐŚŝƐĞƐ ďŽƚŚ ŶĂƟŽŶĂůůLJ ĂŶĚ ŝŶƚĞƌŶĂƟŽŶĂůůLJ͕ & ^ ŝƐ ŶŽǁ ƐĞĞŬŝŶŐ ƚŽ ĨƵƌƚŚĞƌ ƚŚĞŝƌ ŽǁŶ ĐŽŵƉĂŶLJ ĂƐ Ă ĨƌĂŶĐŚŝƐĞ͘ KƉƉŽƌƚƵŶŝƟĞƐ ĂƌĞ ĂǀĂŝůĂďůĞ ŝŶ ƚŚĞ h< ĂƐ ĂŶ & ^ ĨƌĂŶĐŚŝƐĞ ŽǁŶĞƌ Žƌ ŝŶƚĞƌŶĂƟŽŶĂůůLJ ĂƐ ĂŶ & ^ DĂƐƚĞƌ &ƌĂŶĐŚŝƐĞ KǁŶĞƌ͘ & ^ ŝƐ ƐŽ ĐŽŶĮĚĞŶƚ ŝŶ ƚŚĞŝƌ ĨƌĂŶĐŚŝƐĞ ŵŽĚĞů ƚŚĂƚ ƚŚĞLJ ŚĂǀĞ ĨƌĂŶĐŚŝƐĞĚ ƚŚĞŝƌ ŽǁŶ ďƵƐŝŶĞƐƐ͕ ǁŝƚŚ ĨƌĂŶĐŚŝƐĞĚ ŽĸĐĞƐ ĂĐƌŽƐƐ ƚŚĞ h< ĂƐ ǁĞůů ĂƐ ŝŶ ƵƌŽƉĞ ĂŶĚ ƵƐƚƌĂůŝĂ ĂŶĚ ƚŚĞ DŝĚĚůĞ ĂƐƚ͘
Adrian Soler Regional Director
About you & ^ ǁĞůĐŽŵĞ ƚŚŽƐĞ ǁŝƚŚ ďƵƐŝŶĞƐƐ ŵĂŶĂŐĞŵĞŶƚ Žƌ ĐŽŶƐƵůƚĂŶĐLJ ďĂĐŬŐƌŽƵŶĚ͕ ǁŚŽ ĐĂŶ ƐĞůů ĂŶĚ ĚĞůŝǀĞƌ ƚŚĞ ĞŶƟƌĞ ƌĂŶŐĞ ŽĨ & ^ ƐĞƌǀŝĐĞƐ͕ ĚĞǀĞůŽƉŝŶŐ Ă ůŽŶŐͲ ƚĞƌŵ ƌĞůĂƟŽŶƐŚŝƉ ǁŝƚŚ ƚŚĞŝƌ ĐůŝĞŶƚƐ͕ ĂƐ ǁĞůů ĂƐ ďƵŝůĚŝŶŐ Ă ƌĂƉƉŽƌƚ ǁŝƚŚ ƚŚĞ ůŽĐĂů ďƵƐŝŶĞƐƐ ĐŽŵŵƵŶŝƚLJ͘ /Ĩ LJŽƵ ĐĂŶ ĐŽŵŵƵŶŝĐĂƚĞ ŐĞŶƵŝŶĞ ĞŶƚŚƵƐŝĂƐŵ͕ ƐŚŽǁ LJŽƵƌ ƉƌŽƐƉĞĐƟǀĞ ĐůŝĞŶƚƐ ƚŚĞ ƉŽƐƐŝďŝůŝƟĞƐ ďĞLJŽŶĚ ƚŚĞ ďŽƵŶĚĂƌŝĞƐ ŽĨ ƚŚĞŝƌ ĐƵƌƌĞŶƚ ďƵƐŝŶĞƐƐ͕ ĂŶĚ ĞŶũŽLJ ŚĞůƉŝŶŐ ƉĞŽƉůĞ ƚŽ ƌĞĂůŝƐĞ ƚŚĞŝƌ ĚƌĞĂŵƐ ĂŶĚ ĞdžƉĂŶĚ ƚŚĞŝƌ ďƵƐŝŶĞƐƐ ŚŽƌŝnjŽŶƐ͕ ƚŚĞŶ & ^ ǁŽƵůĚ ůŝŬĞ ƚŽ ŚĞĂƌ ĨƌŽŵ LJŽƵ͘ & ^ ĐĂŶ ƚƌĂŝŶ LJŽƵ ĂŶĚ ŚĞůƉ LJŽƵ ƚŽ ďƵŝůĚ Ă ƐƵĐĐĞƐƐĨƵů ƉƌŽĮƚĂďůĞ ĨƌĂŶĐŚŝƐĞ ĐŽŶƐƵůƚĂŶĐLJ ďƵƐŝŶĞƐƐ͘
FDS Australia
Paul Wheeler Regional Director
&Žƌ ĂŶ ŝŶǀĞƐƚŵĞŶƚ ŽĨ ďĞƚǁĞĞŶ άϰϱ͕ϬϬϬ н s d ĂŶĚ άϭϬϬ͕ϬϬϬ н s d͕ ĚĞƉĞŶĚŝŶŐ ŽŶ ĨƌĂŶĐŚŝƐĞ ƚLJƉĞ ĂŶĚ ůŽĐĂƟŽŶ͕ ƐƵĐĐĞƐƐĨƵů ĂƉƉůŝĐĂŶƚƐ ǁŝůů ƌĞĐĞŝǀĞ ĚĞƚĂŝůĞĚ ŝŶŝƟĂů ĂŶĚ ŽŶŐŽŝŶŐ ƚƌĂŝŶŝŶŐ͕ ďŽƚŚ Ăƚ ƚŚĞ EŽƌǁŝĐŚ ŚĞĂĚ ŽĸĐĞ ĂŶĚ ŝŶ ƚŚĞ ĮĞůĚ͕ Ă ĐŽŵƉƌĞŚĞŶƐŝǀĞ ďƵƐŝŶĞƐƐ ƉůĂŶ͕ ĂĐĐĞƐƐ ƚŽ Ăůů ƚŚĞ & ^ ƐLJƐƚĞŵƐ ĂŶĚ ĚĂƚĂďĂƐĞƐ͕ ĂŶĚ ĨƵůů ŵĂƌŬĞƟŶŐ ƐƵƉƉŽƌƚ͘ & ^ ĂƌĞ ĂůƐŽ ƉƵďůŝƐŚĞƌƐ ŽĨ dŚĞ &ƌĂŶĐŚŝƐĞ DĂŐĂnjŝŶĞ, dŚĞ h< &ƌĂŶĐŚŝƐĞ ŝƌĞĐƚŽƌLJ, and ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ ŶĂƟŽŶĂů ĂŶĚ ŝŶƚĞƌŶĂƟŽŶĂů ǁĞďƐŝƚĞƐ͘ )RU PRUH LQIRUPDWLRQ contact Chris Davies t: 01603 620 301 e: chrisd@fdsltd.com w: fdsfranchise.com
COVER STORY
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COVER STORY
Café2go
Coffee - the Emirati Way Café2go started in 2011 with its first store opening in Autumn at the Murooj Rotana opposite the exclusive Dubai Mall. It’s Founder/Director General Mr. Jassim Al Bastaki had a vision of creating a brand with something new to bring to the developing region. The concept contains a Middle Eastern ingredient - Camel milk with a popular modern lifestyle drink (coffee & tea). Since its launch the business has created quite a stir around the world. Café2go has hit headlines as far as Japan and the States. The concept of having a local product such as Camel milk with coffee has interested the world as its healthier alternative to Cows milk. Also, the Franchise side of the business is also very attractive and does what it says in the name Café2go. The concept has many different areas that make it different from other conceptions.
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The Product Camel milk is a high source of iron, against cows milk it contains very high levels of Vitamin C, iron and protein. It also contains very low levels of cholesterol. Camel milk, used medically for certain nomadic people is the closest to human’s mother milk. The premium coffee beans also selected are roasted from their very own roaster plant in Alicante, Spain. The roaster prides itself on matching different blends of the coffee beans to create tastes and aroma's that compliment the camel milk to create the perfect cup of coffee. Café2go specializes in 100% Arabica, Robusta and a secret blend that is specifically made to fuse with the Camel milk. Other specialized beverages include hot & cold coffees and teas, smoothies, gelatos and frozen yogurt, with the option of cow or camel's milk. Fresh food is also served with its freshly baked pastries, croissants, salads, sandwiches (chicken, beef or camal meat) and waffles. Café2go have also gone a step further and produced its own branding of products from
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“We’ve developed strong, long-term relationships with the Colombian farmer's whom we exclusively deal with to help ensure high-quality coffee our customers expect from us. It’s our goal to ensure that, all of our coffee is grown using ethical trading and responsible growing practices.” Mr. Jassim Al Bastaki, Founder/Director General, Café2go coffee and tea, mugs and accessories. Such a wide demand for camel based product Café2go developed Camellos, a brand under which only camel drinks and food is served. Café2go now serves Camellos products through all their concepts and franchisees can take advantage of the same.
personalized service and exciting atmosphere. The management also considers itself to be socially responsible by giving back to the society by helping building and changing lives.
The Mission Café2go’s vision is to unite people from all backgrounds in an experience by positioning itself as a premier coffee shop chain with a global presence. Café2go is committed to dealing an experience that poises excellence,
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COVER STORY The Founder/Director General Mr. Jassim Al Bastaki, an Emirati entrepreneur founded the company with an idea to set up and organically grow a café business specializing in coffee with camel milk. Jassim was the first UAE national to graduate in hospitality management from University of Florida, USA. He has 20 years of experience in the government and private sectors, property assets, hotels, hospitality and the aviation industry. Aside from managing Café2go & Camellos, he is also Director General of Midex Airlines. The CEO of the Moon Hotel Management and Consultancy Group MHMC - group, a one stop shop solution provider in cutting-edge hospitality strategies.
The Franchise Café2go Franchise consists of different elements which makes it stand out from the crowd. It has the café, the kiosk, mobile van, drive-thru and the push cart. The name ‘Café2go’ brings to life the concept by not only having nice areas for cafés but also having mobile cafés on the go in different locations.
Café Outlet Strategically located across from the prestigious Dubai Mall in the Murooj Rotana Complex, Café2go is a delightful place for anyone to come unwind and get away from the fast paced city. With a welcoming, relaxed, cozy and comfortable atmosphere and a seating capacity of 50+ people inside and 15+ outside with a view of Dubai Mall, it’s the perfect place to relax, socialize and enjoy our signature drinks. The place is also equipped with a meeting place where business deals can be closed over a cup of hot coffee, sandwich or a tea. Our cafés are sure to sooth your heart and mind. There is nothing like a delicious cup of coffee to take your mind off of things and relax your soul anytime of the day.
The kiosk • The kiosk offers a new concept in Dubai that has attracted a lot of media attention. • Healthier alternative to regular products • Everything is freshly delivered the same day
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• Unique blend of drinks and caters for all ages • Tourist attraction for design linked to the old Bedouin Culture
Café2go Mobile Café Pioneers of the mobile café concept in the UAE, Café2go Drive thru is anything but an ordinary concept. Convenience of customers is most important to us an with our mobile café unit you don’t have to come to us, we come to you.
Café2go Pushcart • Ideal for those who wish to grab and go • Ergonomically advanced, cute, compact,
innovative secure mobile and modular • On-board utilities including water generator and water disposal. • Complete mobility for easy placement and relocation. Secure storage and hygienic • Able to serve hot and cold drink varieties plus food. • Compact size suitable for high footfall locations.
Other brands • Tea2go • Water2go • Coffee2go
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LFA DIRECTORY
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INTERVIEW
Q&A
with Mr. Jassim Al Bastaki, Founder/Director General, Café2go In such a competitive market how do you see yourself in the franchise market and what are the long-term goals for Café2go?
What Franchise system are you working to and why?
Café2go has received great publicity from around the world from USA to Japan and we pride ourselves on developing something from the Arabic world. Our product is different and our diversity in the business caters for all. Camel milk is a old traditionally used product here in the Middle East but not overseas. I feel that by introducing new concept such as the mobility is a better and long-lasting concept. The flexibility of the fees for the franchise, the product and the support we give is more
We have different systems, which include an individual franchise, area franchise or a master franchise. Depending on what the franchisee is looking for, we can cater to their request depending on the country and the area that is involved. We have signed an individual franchise in Tripoli, Libya and a Area Development franchise for Qatar and are in final talks with individuals from Saudi Arabia, Bahrain & Kuwait. Locally in the UAE we have the same plans available and looking to expand into all of the Emirates.
The Mobile Café
individual then its competitors and I can see Café2go developing overseas in the near future.
What would an investor look to require for his level of investment? We can offer different packages to suit different people. The starting prices would be around AED25,000 for a 5 year franchise fee plus 10% gross profit. Packages vary depending on whether somebody wants a café outlet, kiosk café, mobile café, or pushcart café packages. They get full corporate franchise support but most importantly flexibility, which other franchises might not offer.
For more information on Café2go Franchise please contact Haider Shah on marketing@cafe2go.ae
PRESS RELEASE
Camel-Chinos make their way to Qatar Innovative Café2Go chain signs Franchise area development deal with Al Bateel Group
Left: Mr. Bateel from Al Bateel Group Qatar Right: Mr. Al Bastaki, Café2go
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Café2Go, the first Emirati innovative coffee shop chain, is getting ready to set foot in Qatar. This new deal helps to expand the presence of Café2go across the globe. The franchisee is Al Bateel Group, which will open five Café2go branches in Qatar within the next three years. The first outlet should be opening in the second quarter of 2013. Mr. Al Bastaki says “We are honored and proud to have a franchisee like Al Bateel Group, who have a great reputation and standing across the globe.” "We are looking forward to building a strong relationship with Al Bateel Group and offering our unique drinks and concept to the people of Qatar", he added. Al Bateel Group is one of the most diversified business groups in Qatar. With a portfolio of businesses in all key sectors Al Bateel Group is a major player in Qatar and across the globe. Since its inception in 1989, Al Bateel Group has diversified its business in all key sectors including oil and gas, telecommunications, information technology, travel, food service, hospitality, security services, construction, logistics and marine services. “We are excited to bring such a prestigious brand like Café2go to Qatar and be unique and different from all other cafés” said Ahmad M. Al-Ali the Group General Manager. Al Bastaki is confident that the success of the concept in Dubai, and especially the popularity of the camel milk option, will be replicated in Qatar and across the GCC and the wider Middle East. Al Bastaki plans to aggressively expand the Café2Go brand through franchising across the globe. He is in final talks with potential franchisees from Bahrain, Saudi Arabia, Kuwait, Malaysia and England confident that the brand will prove an equally big hit in the GCC and the wider region.
Upstairs of the restaurant, Café2go www.TheFranchiseMagazine-mena.com
LINGUAPHONE GROUP MASTER FRANCHISE OPPORTUNITIES AVAILABLE Transform your business future today with the UK-based Linguaphone Group, the global language training provider with over 100 years of experience in the language training market. We are looking to appoint strong, new Master Franchisees across the Middle East for our two English language training franchises Pingu’s English and Direct English. • Pingu’s English is the breakthrough three-level English language franchise revolutionising the teaching of English to young children of 3-8 years and based on the hugely popular children’s character Pingu™ • Direct English is a unique English language franchise for adults – a nine level language system which provides English language training from the beginner to the corporate executive. The Linguaphone Group already works across the Middle East, Asia and Europe through a network of franchise partners. Become a Linguaphone Group Master Franchisee and you too could reap the rewards that the lucrative English language training market has to offer. And with first-class training and business and marketing support for all partners, what are you waiting for? Master Franchise opportunities are available in a number of territories including Algeria, Bahrain, Iraq, Morocco, Oman, Qatar, Saudi Arabia and Tunisia. Unit Franchisee opportunities exist in these and many other territories too!
opportunities@linguaphonegroup.com www.pingusenglish.com www.directenglish.com www.TheFranchiseMagazine-mena.com FEBRUARY - MARCH 2013
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SLUG OPPORTUNITIES
The midas touch
Luxury British gift brand expands to the Middle East
T
his successful pioneering British company has been converting luxurious and branded design products to Gold, Rhodium or Silver for over 15 years, they have also been developing the addition of beautiful sparkling Swarovski crystallisation on everything from watches to Iphones, (yes even the new iphone 5) Porsche designed Blackberry’s, X box, Gamboys, golf balls and shafts, cigars, car badges bath fittings and even real roses have not been overlooked by the Genie effect, in-fact hundreds of everyday items can be converted to Gold or other precious metals, even the largest Mosque in Europe has had the Genie treatment. As part of their global strategy Goldgenie are now offering their international high worth clients a range of exclusive services including the incorporation of the highest quality certified diamonds. The Goldgenie brand has attracted a long list of celebrities that runs a list as long as the items they can convert to Gold. stars such as David and Victoria Beckham, Elton John, Denzle Washington,
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Helen Mirren, Frank Lampard and Thiery Henry to name just a few that have either adorned or use products from the Genie stable of Luxury branded products, founder Laban Roomes and his team were even invited to the Emmy awards to work their magic on some very special gifts for the stars. With franchise operations that now covers most of the globe Goldgenie are now expanding their global reach to the Middle East, Laban Roomes the company founder states “the Middle Eastern countries are of strategic importance and a valuable region for us as it has been a consistent revenue generator for my brand, astonishingly demand for our products from the Middle East have not been effected in the slightest by the current economical down turn, hence our need for a local franchise partner, we would be interested to talk to any interested parties for either the whole or part of the region”. For information on a Middle East Franchise call/ email marcus@goldgenie.com or +44 208 804 6200 or visit their impressive award winning website www.goldgenie.com.
“the Middle Eastern countries are of strategic importance and a valuable region for us as it has been a consistent revenue generator for my brand“ www.TheFranchiseMagazine-mena.com
REAL ESTATE
Now franchising in the Middle East Goldgenie Global are now actively seeking franchise partners to launch the Goldgenie luxury brand in the Middle East. This is a truly unique single opportunity to develop Goldgenie within the whole or part of the Middle East Please visit www.goldgenie.com or email/call Marcus@goldgenie.com or +44 208 804 6200 for your exclusive franchise information pack
Brand partners
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FRANCHISE OPPORTUNITY
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For more information on international investment opportunities with Ace Hardware International, please contact Megan Scharf at E: mscha@acehardware.com T: 630-990-8820
www.acehardwareintl.com
At Ace Hardware International, our mission is to be the best provider of products, services and operating methods to our international retailers. As the largest home improvement franchise company, we consistently provide our retail partners with ideal entrepreneurial elements, starting with a globally recognized brand, operational flexibility, market exclusivity, and a global distribution network. Our strength is in the variety and uniqueness of our product mix, market knowledge, and our solid vendor relationships. Because of these strengths, we continue to invest in growing the Ace brand network in the MENA region. Establishing our
regional headquarters in Dubai is a testimony to that development and growth, as we recently opened our international headquarters at DAFZone of the most advanced business zones and home to the leading brands of the world. To date, the Ace brand is present in 12 countries in the MENA region and over the next five years, our retailer expansion plan projects operations in Qatar, Oman, Lebanon, Morocco and Cyprus. Most recently, we opened Ace Hardwareâ&#x20AC;&#x2122;s second largest store in Yas Island, Abu Dhabi. We
will continue to expand across the region and continuously investigate the introduction of new categories and services to further strengthen our position as a â&#x20AC;&#x2DC;one store many lifestylesâ&#x20AC;&#x2122; retailer. We are collectively proud of what we have achieved and even more excited about the outlook for an equally promising future. We continue to lead the MENA market strongly positioned as the number one brand across markets and are committed to long-term development within our retail network.
Read more about our progress at http://www.acehardwareintl.com
100% Fresh Fruits and genuine ingredients The Healthy Choice of Ice Creams Freshi Ice Sticks is one of the fastest growing Ice Sticks chains in the world founded in 2011. It is Gelato on a Stick and Gelato is the Italian version of ice cream, made by hand with less butterfat and sugar. It uses natural ingrediants instead of chemicals, so it becomes an ice cream alternative to healthconscious people.
Our Unique Features • Made with Natural Fruits • Everyday Fresh and 100% Healthy • Over 15 Branches in Saudi Arabia • Over 10 Branches in Egypt
The Franchise Package • Access to formulas and operational systems. • Store design and equipment ordering guidance. • Training program and Operations manual. • Representative on-site during opening. • Periodic evaluations and ongoing support. • Marketing Support
Financial Qualifications Business Type: Franchise Fee: Factory Cost: Outlet Cost: Agreement Term:
Country Wide Master Franchisee Fee Vairy by Country US $250,000 US $60, 000 15 Years
Freshi Ice Sticks Aloud AlThalji For Fresh Ice Cream Est Jeddah Saudi Arabia P.O.Box 20738 Jeddah 21465 Tel: +966-2-6677729 | Fax: +966-2-6684774 FEBRUARY - MARCH 2013 42 |info@freshi-ice.com Email:
Take the next step now! Submit the Franchise Application form at our Website.
www.freshi-ice.com
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INTERVIEW
Q&A
Freshi Ice Sticks Taste of Happiness The Franchise Market is very positive in the Gulf region currently. How would you describe the market for Freshi ice and what should people look for before entering the market? The market for Freshi Ice Sticks is very good; people are more and more orientated to healthy foods so there is a huge demand for healthy foods and also healthy Ice Creams. People should look for a good concept and a robust business plan which should highlight the goals and the strategy to make the business successful. But they need to look also at the local demands, is there a real demand for these kind of products or business.
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From your great experience in food and beverages, why do you think Freshi will be a continuing success and where do you see the vision for the future going? People appreciate the facts and production of our ice sticks and they just love the products. We can see that in Saudi and also in Egypt customers are coming back again and again and they are also highly aware of our brand and compare our products with other brands.
With Freshi ice products, please explain why the product separates you from the competition? Freshi ice sticks is a very unique product like
I mentioned it’s healthy, it has 100% fresh fruits and ingredients, no preservatives and no chemicals. It is different than other brands who stock their products from 6 months to 1 year. We offer our customers 50 Flavors which are also unique in the Ice Cream business.
What are you looking for in an investor or Franchisee? A franchisee must include the following characteristics: • He must be financially strong • 100% Committed • Must have experience and competence • Should have a passion towards the restaurant business and food in general. He would be a perfect Franchisee if he has a passion towards the Ice Cream business.
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INTERVIEW
About the GM Tarik Mohamed Alwash, General Manager Born in Berlin Germany Bachelors in Business Administration from King Abdualziz University Started the ice cream business in 2008 and the freshi Brand in 2010 Very passionate about the ice cream business overlooking all productions Personally looking into day to day operations of freshi Saudi Arabia and the franchisees. How will you support them in such a competitive market? A Franchisee will get full support from us in all means. He will receive a 400-page Operation Manual which shows even very small details of the business. Additionally he will get all the recipes for all the flavors in detail. We also provide full training for the Operation Manager and the Production Manager. The Ice Cream cook will also be given a one month training. We will also guide our Franchisee in design and construction of Factory and Branch. We will provide custom architectural plans for Factory and Branches. We will provide on-site support and guidance at the opening of the Factory and the first retail shop. We will conduct periodic evaluations and provide ongoing support for marketing and advertisement.
What sort of investment might a Franchisee expect in terms of initial outlay and ongoing costs? As we are only offering Country wise Master Franchise. So The Franchise fee varies from one Country to another . • • • • •
Factory cost is 250,000 US$ Outlet cost is max 60,000 US$ Royalty 4% Advertising fund 3% Term 15 Years
Is this a very profitable business for the franchise? Yes, it is a very profitable business as we can see from our own branches and as the numbers coming from other franchisees who are operating with us.
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ƐƚĂďůŝƐŚĞĚ ŝŶ ϭϴϱϰ͕ dĂLJůŽƌ ŽĨ KůĚ ŽŶĚ ^ƚƌĞĞƚ ŝƐ ŶŽǁ ŽŶĞ ŽĨ ƚŚĞ h<͛Ɛ ĮŶĞƐƚ male grooming businesses. With plans to expand across both the UK and ŝŶƚĞƌŶĂƟŽŶĂůůLJ͕ ŝƚ͛Ɛ Ă ŐŽŽĚ ƟŵĞ ƚŽ ďĞĐŽŵĞ Ă ƉĂƌƚ ŽĨ ƚŚŝƐ ůƵdžƵƌLJ ďƌĂŶĚ͘ KǀĞƌ ϭϱϬ LJĞĂƌƐ ŽĨ ƌĞƐĞĂƌĐŚ ĂŶĚ ƌĞĮŶĞŵĞŶƚ ŚĂƐ ŐŽŶĞ ŝŶƚŽ ƚŚĞ ƐƵĐĐĞƐƐ ŽĨ Taylor’s products and their accurate work has given them a true insight into what their customer is looking for, which is what makes Taylor’s so special and unique and the very best at what they do. dĂLJůŽƌ͛Ɛ ƉƌŝĚĞ ƚŚĞŵƐĞůǀĞƐ ŽŶ ŐŝǀŝŶŐ ĮƌƐƚ ĐůĂƐƐ͕ ŽŶĞͲƚŽͲŽŶĞ ƚƌĂŝŶŝŶŐ ǁŝƚŚŝŶ ƚŚĞ dĂLJůŽƌ ŽĨ KůĚ ŽŶĚ ^ƚƌĞĞƚ :ĞƌŵLJŶ ŇĂŐƐŚŝƉ ƐƚŽƌĞ ƚŽ ĞǀĞƌLJ ŶĞǁ ĨƌĂŶĐŚŝƐĞ ŽǁŶĞƌ͘ dŚŝƐ ĨĂŶƚĂƐƟĐ ƚƌĂŝŶŝŶŐ ŝƐ ĂŶ ŝŶͲĚĞƉƚŚ ůŽŽŬ ŝŶƚŽ ƚŚĞ ĞŶƟƌĞ ďƵƐŝŶĞƐƐ͘ dŚĞLJ ǁĂŶƚ Ăůů ŽĨ ƚŚĞŝƌ ĨƌĂŶĐŚŝƐĞ ŽǁŶĞƌƐ ƚŽ ŚĂǀĞ ĞdžƉĞƌƚ ŬŶŽǁůĞĚŐĞ͕ ĞdžƉĞƌŝĞŶĐĞ ĂŶĚ ƉĂƐƐŝŽŶ ĂƐ ƚŚĞŝƌ ďƵƐŝŶĞƐƐ ŝƐ ŽīĞƌŝŶŐ ƚŽƉ ĐůĂƐƐ ŐƌŽŽŵŝŶŐ ĂĚǀŝĐĞ ƐŽ ŝƚ ŝƐ ĞƐƐĞŶƟĂů ƚŚĂƚ ƚŚĞ ĞdžŝƐƟŶŐ ŚŝŐŚ ƐƚĂŶĚĂƌĚƐ ŽĨ dĂLJůŽƌ͛Ɛ ďĞ ƵƉŚĞůĚ͘ To be apart of the Taylor’s success, you will have retail or sales management experience, a genuine passion and enthusiasm for the male grooming industry, the Taylor brand and ĐŽŵŵĞƌĐŝĂů ŽƉƉŽƌƚƵŶŝƚLJ ŝŶ LJŽƵƌ ůŽĐĂƟŽŶ͘
The offer: ͻ ͻ ͻ ͻ ͻ ͻ
Proven business concept Opportunity in a growing, upcoming chic market Strong, established brand 150 years of industry experience /ŶͲĚĞƉƚŚ ƚƌĂŝŶŝŶŐ Unique and luxury products
Taylor’s pride themselves WV OQ^QVO ÅZ[\ KTI[[ one-to-one training… it is essential that the existing high standard of Taylor’s be upheld.
<PM 4WKI\QWV[
The package
Are you based in any of the following ƉƌŝŽƌŝƚLJ ůŽĐĂƟŽŶƐ͍ /Ĩ ƐŽ͕ dĂLJůŽƌ͛Ɛ ǁŽƵůĚ ůŝŬĞ to talk to you.
ĞƉĞŶĚĞŶƚ ŽŶ ƐŚŽƉ ƐŝnjĞ ĂŶĚ ůŽĐĂƟŽŶ ŝŶŝƟĂů ƵƉĨƌŽŶƚ ƉĂLJŵĞŶƚ ŽĨ άϰϴ͕ϱϬϬ ǁŚŝĐŚ covers;
Desired locations:
ͻ Franchise Licence rights
ͻ Bahamas ͻ Brazil
ͻ Shop premises approval and design assistance
ͻ China
ͻ ƵƐŝŶĞƐƐ ĂŶĚ KƉĞƌĂƟŽŶƐ DĂŶƵĂů
ͻ India
ͻ /ŶŝƟĂů ĂŶĚ ĐŽŶƟŶƵŽƵƐ ƚƌĂŝŶŝŶŐ
ͻ DŝĚĚůĞ ĂƐƚ ͻ Russia
ͻ KŶĞͲƚŽͲŽŶĞ ŽŶŐŽŝŶŐ ƐƵƉƉŽƌƚ ĨƌŽŵ Ă highly experience franchisor
ͻ USA
ͻ Website and email address ͻ ůů ŶĞĐĞƐƐĂƌLJ ŵĂƌŬĞƟŶŐ
For more information on this luxury ZM\IQT NZIVKPQ[M KWV\IK\ +PZQ[ ,I^QM[ Call: 01603 620 301 Email: KPZQ[L(NL[T\L KWU
Read more online and register for further information through The Franchise Magazine at: thefm.net/e1574
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3HZ[ `LHY Figaro’s Italian Pizza JLSLIYH[LK P[Z [O HUUP]LYZHY` HUK JVU[PU\LK P[Z L_WHUZPVU HJYVZZ [OL <:( HUK [OL ^VYSK Figaro’s Pizza PZ UV^ SVVRPUN MVY 4HZ[LY -YHUJOPZL 6^ULYZ PU [OL <2 [V KL]LSVW P[Z [Y\S` \UPX\L HUK YLJVNUPZHISL IYHUK PU [OYLL 4HZ[LY HYLHZ ¶ ,UNSHUK HUK >HSLZ :JV[SHUK HUK 0YLSHUK 05=,:;4,5; 9,8<09,+ -964 =(; The Figaro’s Pizza franchise structure gives you the chance to grow a territory, obtain a much larger piece of the pie and be ĐŽŵƉĞŶƐĂƚĞĚ ĨŽƌ ƚŚĞ ƉƌŽĚƵĐƟǀŝƚLJ ĂŶĚ ƌĞǀĞŶƵĞƐ ŝŶ LJŽƵƌ ƚĞƌƌŝƚŽƌLJ͘ In order to qualify, you must be able to recruit, train and support other Figaro’s Pizza individual unit franchise owners in LJŽƵƌ ƚĞƌƌŝƚŽƌLJ͘ /Ŷ ƌĞƚƵƌŶ ĨŽƌ ƚŚĞ ƐĞƌǀŝĐĞƐ ĂŶĚ ĐŽŵŵŝƚŵĞŶƚ͕ ǁĞ ƐŚĂƌĞ ŝŶ ƚŚĞ ƌĞǀĞŶƵĞƐ ĨƌŽŵ LJŽƵƌ ƚĞƌƌŝƚŽƌLJ͘ dŚŝƐ ŝƐ ĂŶ ŽƉƉŽƌƚƵŶŝƚLJ ƚŽ ĞĂƌŶ ƐŝŐŶŝĮĐĂŶƚ ƌĞǀĞŶƵĞƐ ĚĞƉĞŶĚŝŶŐ ŽŶ ŚŽǁ ƋƵŝĐŬůLJ LJŽƵ ĚĞǀĞůŽƉ LJŽƵƌ ƚĞƌƌŝƚŽƌLJ͘
You don’t need knowledge or previous experience in either the food service or franchise industry to be a Figaro’s Pizza Master Franchise KǁŶĞƌ͘ zŽƵ ũƵƐƚ need to make a full commitment to follow our standards ĂŶĚ ĨŽƌŵĂƚƐ ĨŽƌ ŽƉĞƌĂƟŶŐ ŽƵƌ ďƵƐŝŶĞƐƐ ŵŽĚĞů͘ /Ĩ LJŽƵ are a leader and an achiever, ƚŚŝƐ ŝƐ ƚŚĞ ďƵƐŝŶĞƐƐ ŵŽĚĞů ĨŽƌ LJŽƵ͘
-PNHYV»Z 7PaaH will provide the training to assist you in learning how to guide your franchise owners in: ÷ ÷ ÷ ÷ ÷
Site selection Construction steps Pre-opening activities Grand openings Day-to-day operations
&ŝŐĂƌŽ͛Ɛ WŝnjnjĂ͛Ɛ ƵŶŝƋƵĞ ƐĞůůŝŶŐ ƉƌŽƉŽƐŝƟŽŶ ĐĞŶƚƌĞƐ ŽŶ ƚŚĞ ĨŽŽĚ ĂŶĚ ŝƚƐ ǀĂůƵĞ͕ ůŝǀŝŶŐ ƵƉ ƚŽ ƚŚĞ ĐŽŵƉĂŶLJ ƐůŽŐĂŶ ʹ ͚&ůĂǀŽƵƌƐ ƚŚĂƚ ^ŝŶŐ͛͘ At Figaro’s Pizza, the dough is made fresh in store, using a blend of ingredients that lead to a crust that bakes light and ĐƌŝƐƉ͕ ďŽƚŚ ŝŶ ƐƚŽƌĞ ĂŶĚ ŝŶ ƚŚĞ ĐƵƐƚŽŵĞƌ͛Ɛ ŽǀĞŶ Ăƚ ŚŽŵĞ͘
tĞ ƚĂŬĞ ũƵƐƚ ĂƐ ŵƵĐŚ ƉƌŝĚĞ ŝŶ ǁŚĂƚ ŐŽĞƐ ŽŶ ƚŽƉ͕ ŝŶĐůƵĚŝŶŐ Ă ƵŶŝƋƵĞ ďůĞŶĚ ŽĨ ĨƌĞƐŚ ƐĂƵĐĞƐ͘ &Žƌ ĞdžĂŵƉůĞ͕ ŽƵƌ ƌĞĚ ƐĂƵĐĞ includes imported extra virgin olive oil and we use only 100 per ĐĞŶƚ ƌĞĂů DŽnjnjĂƌĞůůĂ ĐŚĞĞƐĞ͘ KƵƌ ǀĞŐĞƚĂďůĞƐ ĂƌĞ ŶĞǀĞƌ ĐĂŶŶĞĚ Žƌ ĨƌŽnjĞŶ͕ ŽƵƌ ůĞĂŶĞƌ ŵĞĂƚƐ ŚĂǀĞ ŶŽ ĮůůĞƌƐ ĂŶĚ ŶŽŶĞ ŽĨ ŽƵƌ ƉŝnjnjĂƐ ŝŶĐůƵĚĞ ŵŽŶŽƐŽĚŝƵŵ ŐůƵƚĂŵĂƚĞ Žƌ ƚƌĂŶƐ ĨĂƚ͘ dŚĞ ĚŝƐƟŶĐƟǀĞ ŇĂǀŽƵƌƐ ƚŚĂƚ ĐŽŵĞ ĨƌŽŵ ƚŚĞƐĞ ŝŶŐƌĞĚŝĞŶƚƐ ĂƌĞ ĐŽŵďŝŶĞĚ ŝŶ ƚĞƌƌŝĮĐ ƌĞĐŝƉĞƐ ƚŚĂƚ ĞŶŚĂŶĐĞ ƚŚĞ ƐƵƉĞƌŝŽƌ ƚĂƐƚĞƐ͘ ůů ƚŚĞƐĞ ĨĂĐƚŽƌƐ ƉůƵƐ ŐĞŶĞƌŽƵƐ ƚŽƉƉŝŶŐ ƉŽƌƟŽŶƐ͕ ůĞĂĚƐ ƵƐ ƚŽ ƉƌŽƵĚůLJ ĐůĂŝŵ ƚŚĂƚ &ŝŐĂƌŽ͛Ɛ WŝnjnjĂ ŝƐ ͚dŚĞ ĞƐƚ WŝnjnjĂ zŽƵ ĂŶ ,ĂǀĞ ƚ ,ŽŵĞ͛͘ &ŝŐĂƌŽ͛Ɛ WŝnjnjĂ ŝƐ ŽŶĞ ŽĨ ƚŚĞ ŽŶůLJ ƉŝnjnjĂ ĐŽŵƉĂŶŝĞƐ ƚŚĂƚ ŽīĞƌƐ ĐƵƐƚŽŵĞƌƐ ƚŚĞ ŽƉƟŽŶ ŽĨ Ă ĐĂƌƌLJͲŽƵƚ Žƌ ĚĞůŝǀĞƌĞĚ ƉŝnjnjĂ ŚŽƚ ĂŶĚ ƌĞĂĚLJ ƚŽ ĞĂƚ Žƌ ƌĞĂĚLJ ƚŽ ƉŽƉ ŝŶ ƚŚĞ ŽǀĞŶ ǁŚĞŶ ƚŚĞLJ ǁĂŶƚ ŝƚ͘ KƵƌ ƚĂŬĞ ĂŶĚ ďĂŬĞ ƉŝnjnjĂƐ ĂƌĞ ƉƌĞƉĂƌĞĚ ŽŶ ĂŶ ŽǀĞŶͲ ready baking tray, so that all our customers have to do is simply heat up the oven, unwrap their pizza and slide it ŝŶ͘ dŚĞ ƉŝnjnjĂ ĐĂŶ ďĞ ĐƵƚ ĂŶĚ ĞǀĞŶ ƐĞƌǀĞĚ ŽŶ ƚŚĞ ƚƌĂLJ ʹ ŶŽƚŚŝŶŐ ĐŽƵůĚ ďĞ ŵŽƌĞ ĐŽŶǀĞŶŝĞŶƚ͘
Great products and organisation If you invest in one of our Master Franchises, you will be ƌĞƐƉŽŶƐŝďůĞ ĨŽƌ ĚĞǀĞůŽƉŝŶŐ ĂŶĚ ĞdžĞĐƵƟŶŐ Ă ŵĂƌŬĞƚ ƉĞŶĞƚƌĂƟŽŶ ƐƚƌĂƚĞŐLJ ŝŶ LJŽƵƌ ĚĞƐŝŐŶĂƚĞĚ ƚĞƌƌŝƚŽƌLJ͘ dŚĞ ƉŽƚĞŶƟĂů ŶƵŵďĞƌ ŽĨ
ůŽĐĂƟŽŶƐ ŝŶ LJŽƵƌ ŵĂƌŬĞƚ ǁŝůů ĚĞƉĞŶĚ ŽŶ ŵĂŶLJ ĨĂĐƚŽƌƐ ŝŶĐůƵĚŝŶŐ ŝƚƐ ƐŝnjĞ͕ ƉŽƉƵůĂƟŽŶ ĂŶĚ ƟŵŝŶŐ͘ /ƚ ŝƐ ŶŽƚ ŽŌĞŶ ƚŚĂƚ LJŽƵ ĮŶĚ ƚŚŝƐ ƚLJƉĞ ŽĨ ĐŽŵďŝŶĂƟŽŶ ŝŶ Ă ĨƌĂŶĐŚŝƐĞ ŽƉƉŽƌƚƵŶŝƚLJ ʹ Ă ŐƌĞĂƚ ƉƌŽĚƵĐƚ ĂŶĚ Ă ŐƌĞĂƚ ŽƌŐĂŶŝƐĂƟŽŶ͘ Figaro’s Pizza has assembled the best and brightest people in ĨŽŽĚ ƐĞƌǀŝĐĞ͕ ŽƉĞƌĂƟŽŶƐ ĂŶĚ ƚƌĂŝŶŝŶŐ͕ ŵĂƌŬĞƟŶŐ ĨƌĂŶĐŚŝƐŝŶŐ ĂŶĚ ďƵƐŝŶĞƐƐ ŵĂŶĂŐĞŵĞŶƚ͘ ůů ƚŚĞƐĞ ƉĞŽƉůĞ ŚĂǀĞ ŽŶĞ ŐŽĂů ʹ ƚŽ ŚĞůƉ ŵĂŬĞ LJŽƵ Ă ƐƵĐĐĞƐƐĨƵů &ŝŐĂƌŽ͛Ɛ DĂƐƚĞƌ &ƌĂŶĐŚŝƐĞ KǁŶĞƌ͘ We invite you to learn more about our very unique and ƚĂƌŐĞƚĞĚ ďƵƐŝŶĞƐƐ ŽƉƉŽƌƚƵŶŝƚLJ͘ zŽƵ ǁŝůů ůŽǀĞ ǁŚĂƚ LJŽƵ ĚŽ ĂŶĚ ŚĂǀĞ ƚŚĞ ŽƉƉŽƌƚƵŶŝƚLJ ƚŽ ƐŝŐŶŝĮĐĂŶƚůLJ ŝŶĐƌĞĂƐĞ LJŽƵƌ ƐƚĂƚƵƌĞ͕ ŝŵĂŐĞ ĂŶĚ ĨƵƚƵƌĞ͘
-VY TVYL PUMVYTH[PVU HIV\[ [OL -PNHYV»Z 7PaaH 4HZ[LY -YHUJOPZL VWWVY[\UP[` WSLHZL JHSS Chris Davies VU 01603 620 301 LTHPS chrisd@fdsltd.com VY ]PZP[! thefm.net/e1388
2012 46 | OCTOBER FEBRUARY -NOVEMBER MARCH 2013 50
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FRANCHISE OPPORTUNITY
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“I’m considering
expanding my business by franchising – can FDS help?”
“I would like to improve our
Franchise Operations Manual – can FDS help?”
“I want to sell my
“I’m considering
franchise – can FDS help?”
owning a franchise – can FDS help?”
“I want to recruit
more franchise owners – can FDS help?”
“I’m thinking of
expanding globally – can FDS help?”
YES WE CAN! Franchise Development Services (FDS) has been providing advice and guidance to help prospective and established franchisors and franchise owners succeed since 1981. Whether you wish to own a franchise or franchise your business, FDS United Arab Emirates should be your first call. Contact us today and receive the best possible introduction to franchising.
Whatever your question – FDS UAE can help! Visit our YouTube channel to view our client testimonials: youtube.com/fdsfranchise t: +971(0)4 304 2510 e: steve@fdsuae.com w: fdsuae.com FDS UAE Apex Middle East PO Box 32429 Ras Al Khaimah Dubai, UAE
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