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									              ‫السيد / رولف كيرست‬

           ‫‪Mr. Rolf Gerhard Kirst‬‬


‫المنظمون‬
              With reputation comes
                  responsibility

            Benefits by
   Franchise in Saudi
                Arabia
• How to implement franchise know-how
• What needs to be done to development a
franchise friendly environment for SME’s
               Introduction
             Rolf Gerhard Kirst

• Personal introduction
  – Independent entrepreneur since 1977
  – Experience in Cooperation since 1982 in the travel
    industry
  – Franchise experience since 1990 with travel agencies
  – Regional Master for Uniglobe Travel since 1994
  – Board member of the DFV since 1999
  – Board member and Vice President of the EFF since
    2001
  – Member of WFC
     How to implement franchise know-how
                 in a country


1.    Prerequisites by the government for SME‘s and
      Franchise
2.    Building an association versus private consultancy
3.    PR and marketing to make Franchise attractive
4.    Financing
5.    Training (transfer franchise know-how to officials,
      franchisees, franchisers)
6.    Consulting firms for developing local concepts
7.    Recruitment agencies for franchise sales
 Different understanding in the
           Middle East
• Taking an international franchise licence
  here means to get exclusivity rights
• Representing a brand and open a number
  of stores
• Sub-franchise is mostly unknown or rare
        The big challenge


• Franchise in the Middle East
  is in the hand of a few rich
  families
• All outlets are managed by the
  main company
• Why not sub-franchise ?????
                The enormous potential
• See demographics

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

    Total       85,156,000
           Why sub-franchise


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


• The benefits of sub-franchising
• To keep the business in local hands
• SME‘s positive influence to the
  economy
• To meet local employment
  obligations
The big companies should
  reconsider
            The situation today
                  in KSA
• The Saudi government
  wants to establish Riyadh as
  the capital of franchise in the
  Middle East
• What needs to be done to
  development a franchise
  friendly environment for
  SME’s
           The European model
                  as a basis

•   The Code of Ethics
•   Self regulation by the
    market
•   Unidroit - Model law versus
    self regulation
•   The role of national
    associations and the EFF
 Pre-requisits by the government for
       SME‘s and Franchise



• Low entry barriers for SME‘s
• Support with external know-
  how
• Fonds for financing
• Recognition by the
  government and the public
Building an association versus private
             consultancy


• First step by the Chamber of
  Commerce
• Second step by Private
  Consultants
• Third step building an association
  dominated by entrepreneurs
PR and Marketing to make Franchise
               attractive


• With support of the
  government the press will do
  his job
• An association or Chamber of
  Commerce will promote
  Franchise in general and
  impart franchise know how
              Financing



• Bank loans
• Private investment
• Government fonds
                         Training


Transfer franchise know-how to
   officials, franchisees,
   franchisors
•       Seminars
•       Exhibitions
•       Info trips to other countries (Europe, USA)
•       Special training courses
    –     Business plan
    –     Documentation etc.
  Consulting firms for developing
            local concepts

• Local multi unit concepts want
  to expand with franchise
  – How to create the franchise
    model
  – Manuals
  – Training
  – Communication concept
  – Marketing and CI
 Recruitment agencies for franchise
                sales


• Direct recruitment
• Recruitment agencies
  – Sales material
  – Marketing for franchise sales
  – Application process
  – Finding the right partners
  – Legal documents
       The need of a Franchise
         Competence Center
•   General Franchise consulting
•   Franchise development
•   Franchise recruitment
•   Franchise financing
•   Franchise marketing
•   Franchise training
          Conclusion


     There is a lot to do
    Tackle the challenge

It‘s a long way to the
  capital of franchise
               ‫السيد / رولف كيرست‬

            ‫‪Mr. Rolf Gerhard Kirst‬‬

‫المنظمون•‬

								
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