Franchising
Franchising is the practice of the right to use a firm’s business model and brand for a prescribed period of time .
Franchising is one of three business strategies a company may use in capturing market share. The others are company owned units or a combination of company owned and franchised units. Franchising is a business strategy for getting and keeping customers. It is a marketing system for creating an image in the minds of current and future customers about how the company’s products and services can help them. It is a method for distributing products and services that satisfy customer needs.
Franchising is a network of interdependent business relationships that allows a number of people to share:
– A brand identification
– A successful method of doing business
-A proven marketing and distribution system
In short, franchising is a strategic alliance between groups of people who have specific relationships and responsibilities with a common goal to dominate markets, i.e., to get and keep more customers than their competitors.
Franchising in Egypt is a promising industry with a deeply rooted history that dates back to Wimpy restaurant at Mohandessin in the 1970s. The industry has achieved a remarkable growth during the 90s with wide-spread American brands such as McDonald’s, KFC, Pizza Hut, Subway and others.Franchising in Egypt has expanded to develop some famous Egyptian brand names; empowering them into being franchised themselves. Those brand names have relied in their development on the accumulated experience gained by international Franchising.In addition to Egyptian restaurants franchising in Egypt extended to other activities such as garments and fashion. Presently we have authentic Egyptian restaurants that have franchised in some Gulf countries such as Saudi Arabia, United Arab Emirates and Kuwait.The Egyptian Chamber of Tourism Establishments offers all the possible help and support to investors who would like to start up a business with franchised restaurants that serve both tourists and Egyptians.