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Many companies use franchising business model to expand their business nowadays. In fact, almost any product or service that can be expanded through franchising. There are different growth options for your business; however, franchising as an effective method for you to expand if you have a successful business model.

Franchising has proven to be a successful business model, suitable for business owners want to expand their business in a short time. Business owners (Franchisor) will own a trademark, names, products, patents and special technologies if he wants to establish his franchising business. In the franchise agreement, franchisor granted to franchisees, a person or group of people, the right to market a product or service using the trademark or trade name of Franchisor. In the meantime, Franchisee needs to pay the corresponding fees (royalty) to the Franchisor. The franchisee agreement term is usually for the 3-5 years.  Franchisor will, normally, renew the franchisee agreement except the Franchisee does not want to run.  However, we do not suggest to put this renew clause in the franchisee agreement in order to prevent future disputes.


The following provides three points of view with useful tips and guidance to business entrepreneur who wish to expand overseas markets by acting as franchisor or consider investing in a franchise.

Suitability for successful franchising

a) Understanding Franchise basics

b) Success of company stores/centers

c) Be clear on your “WHY” for Franchising

d) Your vision for a Franchise company

e) Right attitude for Franchising

f) Suitability Assessment

g) Company stores vs Franchising Stores

Building a replicable franchise system – 7 key elements

a) Business and Financial Modelling

b) Trademarks and Legal Agreements

c) Franchisee training program

d) Franchisee recruitment program

e) Franchisee Support program

f) Infrastructure, Technology and Supply Chain

Franchise Program Development roadmap

1. Preliminary understanding of Franchising business.

2.  Detailed education of various steps to develop a franchise system.

       a) Suitability to franchise.

       b) Packaging your concept for franchising.

       c) Building a replicable franchise system.

       d) Steps to go international.

       e) Develop plans for implementation.

3. Decide and execute implementation plans.

4. Review implementation   plans.

5. Franchise Marketing and Recruitment.

6. Franchise Agreement.

7. Franchise Training.

8. Franchise Stores opening consultation and support.

Asia Branding & Franchising Association (ABFA)

ABFA educates and mentors Franchisepreneurs in Asia to evaluate, identify, investigate, own, develop and launch franchise businesses in their respective markets.

We have a professional team of analysts and experts, provide franchise networks and assist members to develop variety of business models.








Karen Kwan

Founding Chairlady of Asia Branding and Franchising Association, Director of Asia Franchise Networks (HK) Limited, Math Monkey (Hong Kong) Limited and English Eagle (Hong Kong) Limited

Tel: +852 2307 1098


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