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Ms. Karen Kwan, Founding Chairlady of Asia Branding and Franchising Association
Recently, more and more companies want to step into Asia franchising market because of unlimited resources, multiple cultures, expanding middle class and higher income, which all provide a great opportunity for franchising entrepreneurs. Beside tradition business, many different kinds of business can be operated as franchising, especially in Singapore and Hong Kong, because they are the middle point for companies to explore their market to China, Indonesia, Japan and Korea etc.
For any entrepreneurs with lofty ideals, franchising is a way to break through, which can come to the dream by joining famous brand with enjoying low risk. Also, franchisor will initiate the knack of franchising and provide professional instruction to new joined franchisees for shortening learning time. In addition, franchising can get respect by banks as they will lend relevant loan to franchisees more easily than personal application, which means they get more opportunities.
I have many of years’ experience in franchising, and successfully brought Math Monkey to Hong Kong and other regions of Asia as franchising model. As mentioned before, although there are many chances in Asia market, we still have to face different challenges when doing outward development, such as law, intellectual property, language, culture, communication, times zone.
Leading franchising business to success needs a full concept and system developed by franchisor. Franchise also has to plan for different situations that will probably happened when running business, including both smooth and adverse cases. Meanwhile, new business strategy, transferring requirement of bank, intangible investment return rate, staff working guideline, requirement of franchisor, which all are necessary to be defined. Normally, franchising period is between 3 and 5 years, unless franchisee is unwilling to continue, franchisor will renew contract. By the way, it is suggested to add the definition of termination into agreement to avoid any argument in the future.
Although franchising agreement is set up by both franchisor and franchisee, some terms and conditions have to be carefully handled. Therefore, I decided to establish Asia Branding and Franchising Association under supportive circumstance to share rich brand building and franchising experience to different type of entrepreneurs. Just like our vision, we are aiming at encouraging branding and franchising development in Hong Kong, and even Asia Pacific Zone!