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Mr. Rolf Gerhard Kirst

With reputation comes responsibilityBenefits by Franchise in Saudi Arabia How to implement franchise know-how What needs to be done to development a franchise friendly environment for SMEs

IntroductionRolf Gerhard KirstPersonal introductionIndependent entrepreneur since 1977Experience in Cooperation since 1982 in the travel industryFranchise experience since 1990 with travel agenciesRegional Master for Uniglobe Travel since 1994Board member of the DFV since 1999Board member and Vice President of the EFF since 2001Member of WFC

How to implement franchise know-how in a countryPrerequisites by the government for SMEs and FranchiseBuilding an association versus private consultancy PR and marketing to make Franchise attractiveFinancingTraining (transfer franchise know-how to officials, franchisees, franchisers)Consulting firms for developing local conceptsRecruitment agencies for franchise sales

Different understanding in the Middle EastTaking an international franchise licence here means to get exclusivity rights Representing a brand and open a number of storesSub-franchise is mostly unknown or rare

The big challengeFranchise in the Middle East is in the hand of a few rich familiesAll outlets are managed by the main companyWhy not sub-franchise ?????

The enormous potentialSee demographics

Why sub-franchiseBig families - but not every son can be fathers heirYoung people need a vision and want to be self employed even if in smaller scaleA big crowd of potential SMEsThe range for big companies is limited

Understanding ...The benefits of sub-franchisingTo keep the business in local handsSMEs positive influence to the economyTo meet local employment obligationsThe big companies should reconsider their strategy

The situation today in KSAThe Saudi government wants to establish Riyadh as the capital of franchise in the Middle EastWhat needs to be done to development a franchise friendly environment for SMEs

The European model as a basisThe Code of EthicsSelf regulation by the marketUnidroit - Model law versus self regulationThe role of national associations and the EFF

Pre-requisits by the government for SMEs and FranchiseLow entry barriers for SMEsSupport with external know-how Fonds for financingRecognition by the government and the public

Building an association versus private consultancyFirst step by the Chamber of CommerceSecond step by Private ConsultantsThird step building an association dominated by entrepreneurs

PR and Marketing to make Franchise attractiveWith support of the government the press will do his jobAn association or Chamber of Commerce will promote Franchise in general and impart franchise know how

FinancingBank loans Private investmentGovernment fonds

TrainingTransfer franchise know-how to officials, franchisees, franchisorsSeminarsExhibitionsInfo trips to other countries (Europe, USA)Special training coursesBusiness planDocumentation etc.

Consulting firms for developing local conceptsLocal multi unit concepts want to expand with franchiseHow to create the franchise modelManualsTrainingCommunication conceptMarketing and CI

Recruitment agencies for franchise salesDirect recruitmentRecruitment agenciesSales materialMarketing for franchise salesApplication processFinding the right partnersLegal documents

The need of a Franchise Competence CenterGeneral Franchise consultingFranchise developmentFranchise recruitmentFranchise financingFranchise marketingFranchise training

ConclusionThere is a lot to doTackle the challengeIts a long way to the capital of franchise

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Mr. Rolf Gerhard Kirst