Tax agent: 95% success rate for "franchising" businesses.

4 essentials for small and medium-sized companies to enter the franchising field

• “Franchise” has effective contributions to the national economy and small and medium enterprises.

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• Mohamed Helmy: "The UAE is a world leader in attracting foreign investments and international brands."

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The economist and tax agent, Mohamed Helmy, said that there are four basics that must be met in order for owners of small and medium enterprises to be able to enter the franchise system known internationally as "franchising", indicating that the franchisees have a 95% chance of success compared to 12% of Those who work without a "franchise right."

He explained to "Emirates Today" that the term "franchise" or commercial franchise has become frequently used in recent years, due to its effective contributions to the national economy and to small and medium enterprises.

He indicated that the UAE is a world leader in attracting foreign investments and international brands, due to its economic, political and security stability, a distinguished location in the region, and attractive potentials for foreign investors.

Helmy added that franchising is a method of trade through which the (Franchisor) company grants others (Franchisee) the right to produce, sell, distribute or market the company's original products or services, including This is when the franchising company uses the name of the franchising company, its trademark, reputation, sales procedures and techniques.

Helmy emphasized that one of the most important principles and fundamentals that distinguish the franchise, as a type with unique business characteristics:

1- Relying on the existence of a good or service with a distinctive trademark, where the investor benefits from his fame, but if the investor starts his own business, then it is often a new good or service, a new brand and a new name, and the new investor is experimenting and venturing with all this new.

2- The purchase of a franchise is characterized by obtaining a long period of training, on how to plan the activity, how to obtain the product to be sold, the method of sale, and how to control the performance of the activity so that the franchisor (or the parent company) guarantees that the investor who purchased the franchise Able to provide the good or service exactly as the franchisor offers it.

3- The investor who bought the franchise costs an amount of money that he must continuously pay (annually, for example), the price of the franchise for the franchisor.

4- The remuneration that the franchisor receives by virtue of which he provides important services in this field, the most important of which are: trade name, trademark, trade secrets, training in business planning, and control of business results.

And Helmy continued, that entering the world of business is a difficult decision, given that there are always high risks associated with the uncertainty of obtaining the desired profit, so many investors choose to enter into a franchise as an alternative to an independent business.

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The economist and tax agent, Mohamed Helmy, said that “from 9 to 10 franchises achieve success in the first five years, compared to a ratio between 2 and 10 non-franchisees, meaning that obtaining a franchise is a guarantee of the success of projects, and that the franchising policy Tends to increase as an important strategy to create a continuous business relationship in the local and international markets.

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