Overview of the Franchise Business in Myanmar

Franchise businesses are growing at a rate faster than any other sector of the economy. And they’re creating jobs at a faster pace too.

In America for the fifth consecutive year, 2015 is expected to see another big expansion – 5.1% according to projections from the International Franchise Association.

In the UK growth from 2003 to 2013, when the most recent comparable data is available, shows that franchising expanded by 42% in terms of its turnover, well ahead of the 11.5% growth in real GDP.

And in Myanmar????? Yes Myanmar – the new lucrative Asian franchise market.

New to the franchise industry it naturally lags behind its Asian neighbours: Indonesia has 486 franchise brands and 39,000 outlets; Malaysia has 666 brands and 5066 outlets; Philippines has 1500 brands and 140,000 outlets; and Singapore has 500 brands and 3000 outlets (PFA). The industry in these countries, as in USA and UK, creates jobs and contributes to GDP. Myanmar aims to follow this and has recently set up their own Franchise Association.

At present the Association has many hurdles to overcome especially as it has limited legal powers and the Government does not fully support the group, but it is early days. For franchisors, Myanmar has been seen as the remaining Asian frontier and is attracting interest from overseas countries, Japanese and Korean food franchises are especially popular. These chains will often keep some of their domestic food taste items to differentiate and attract consumers seeking traditional flavours. Bigger name companies such as KFC and Starbucks are actively researching Myanmar as the low overheads and lack of competition are key drivers of entry.

Myanmar has a population of over 50 million consumers and the SME business thrives, accounting for 97% of all companies. For these smaller companies a more organized franchise system would give them the opportunity to explore franchising as a route for growth. At present there are currently about 50 main franchise brands in the country but as the franchise regulations improve and franchise knowledge becomes more widespread we hope to start a sharp upturn in this number.

Presidential economic adviser, U Aung Tun Thet, stated that the main hurdle is not a lack of specific laws or associations, but just a lack of knowledge of how franchises operate.

There are concrete steps that can be taken to support development of franchises, Myanmar’s franchise association should be recognised and supported by the government an. Hopefully the Government will listen and franchising will be a strong contributor to GDP and an economic driver over the coming years.

Pet Franchises Are Proving Popular, Resilient and Profitable

When the economy started to show signs of faltering in late 2008 and slid inevitably into recession, concern about the future was obvious in nearly every business sector. Franchises were seen by many as slightly safer than non-franchised businesses because of the experience and support available from the franchisor. Some franchisors did indeed rise to the occasion and offer extra support to their franchisees by, for example, reducing royalty payments or stepping up their advertising campaigns.

But within the franchising industry there were a handful of sectors that remained confident and saw the worsening economy as an opportunity to expand. One of the factors fueling this confidence was the knowledge that there would be many capable people who had lost their jobs but were prepared to invest in starting a business of their own, and this has indeed proven to be the case.

Another reason for this confidence is the trend of “cocooning”, where families centre their leisure activities around the home. This trend has gained momentum during the recession. In difficult times people go out less, entertain at home more and any spare cash is used to invest in meaningful things such as children’s enrichment classes, the family home and our pet companions.

Franchise businesses that focus on tasks and activities around the home such as maintenance and repair are doing well and franchise businesses which can be run from the home hold great appeal to new entrepreneurs. Many pet franchise businesses sit comfortably within this home-based home-focused category, but the pet franchise industry is far from being a struggling and unimportant niche, Business Week magazine reported that in 2007 Americans spent $34.3 billion on pets and this figure was expected to grow to $52 billion by 2009.

The pet franchise industry has indeed expanded greatly, even in this difficult economy and franchises involved in dog walking, pet grooming, pet training and cleaning up pet poop have flourished. It is really good news all round: for the pet owner, hiring the services of a pet franchise brand ensures that the company has established itself and should be able to meet the customer’s expectations. For the budding entrepreneur, many pet franchises represent an easy business to enter, often with low start-up fees and little previous experience being required.

Additionally, pet franchise businesses benefit from – and enhance – the goodwill found within many neighbourhoods. A petshop owner, a dog walker, a gourmet pet food supplier, a dog washer soon becomes a well-known figure in his or her community and this can result in a cascading set of referrals and endorsements.

For the new entrepreneur, it is also good news, as there is now a wide range of pet franchises to choose from, here is a small sample: Pet and children photography franchises, dog walking and dog day-care franchises, gourmet pet food franchises, such as Woof Gang Bakery, obedience training and the very successful Bark Busters. Most of these can be operated from a home-base, but there are also brick and mortar businesses like the obedience training center Zoom Room and various retail pet store franchises.

Benefits of Choosing a Franchise for a Travel Agency

When it comes to travel agencies, you have a few options available to you. If you love travel and have always dreamed of a travel agency franchise being the right choice for you, then you may want to know the benefits so that you can identify the right options for you to ensure you achieve success and enjoy a successful business operation moving forward.

The first benefit to choosing a franchise for a travel agency is that they already have all the essential technology in place. Think about it, when you want to start your own travel business, you are going to need a brand name, you will need to have software where you can manage your bookings, your deals and keep it updated and so much more. This software can be expensive if you have to have it custom developed for your unique needs. When it comes to buying a travel agency franchise, the technology is already there, all you have to do is install it onto your computer systems and start using it without delay.

Another benefit to this option is the marketing that you get to help you. With a franchise, the holding company will promote your business on your behalf, which means the brand is already visible the day you start your business. As you can imagine, you can’t get any better than that. You open your website for the first time and your company is known throughout your area. When it comes to this investment, you are paying for a trusted brand which is highly visible, reducing the amount of marketing that you need to achieve in order for clients to find your business and take advantage of your deals.

Buying a franchise for a travel agency comes with a wealth of support from the franchiser, another major benefit. When you are investing in a new business, having a back up support plan is something that you will cherish and appreciate, especially in the first year or more. As you become accustomed to how the software works and what is expected of you as a franchisee, the more confident you will become. But that initial support is something that you can rely on each and every day.

Of course, you don’t get any better than investing in a business that already comes with a known name. When you start your own business, you have to pay close attention to your branding, choosing a catchy name, having your logo designed and ensuring that people get to see it daily, so that they remember it to use when they want a service you provide. With a franchise for a travel agency, the name is already there, which means people already know the name, a major benefit, which can save you valuable time, energy and money in the long run.

The final benefit of a franchise for a travel agency is that you have a wider range of providers to work with. Hotels, resorts, airlines, car hire companies and tour companies will already know your company’s name. What this does is you already have the reputation with these companies, making it easier to work with them and secure the best deals to share with your clients now and moving forward.

Remember, even when looking at investing in a franchise, you want to do some research to ensure that you are making the best investment choice for you that will offer you a good return on your investment. Ensure you are completely comfortable with what is offered, what is expected of you as the franchisee and what the franchisor will do for you to ensure your success.