[size=14pt]Global franchisers such as Subway, McDonald's, KFC, 7 Eleven, Burger King, Snap-On Tools, Pizza Hut, Wyndham Hotel Group, ServiceMaster Clean and Choice Hotels, and consultants jostle for $3.5bn Nigerian market [/size]

Nigeria tops the list of countries being targeted by franchisers and global franchise consultants. LAYI ADELOYE writes on the value and benefits of the new trend to the economy


International consultants and local analysts have put the value of the franchise sector in Nigeria at $2bn, rising by $500,000 from the estimated value given at the Cairo international Franchise Summit in August 2010.


The value of the market size of franchising in the country has also been projected to hit $3.5bn in 2012.


Among the top 100 world leading franchisers and franchise development consultants targeting Nigeria’s market are Subway, McDonald’s, KFC, 4 7 Eleven, Burger King, Snap-On Tools, Pizza Hut, Wyndham Hotel Group, ServiceMaster Clean and Choice Hotels.


The world’s leading franchising consultants, Franchise Development Services of United Kingdom, is being touted as spearheading the movement to penetrate Nigeria’s market.


The lure of new business opportunities has been cited as the reason for Nigeria’s emergence as a prime target, especially following the protracted economic crises in Europe and the United States.


The entry of the South African firm, Spar, into Nigeria in August 2010 with an estimated investment value of over $500,000, has subsequently raised the profile of franchising in the country to an estimated $2bn.



Franchising is a business arrangement, where the franchiser grants the franchise operator (the franchisee), the right to distribute certain products or services in a particular way, at a particular location, and for a specified period of time. In return, the franchisee pays the franchiser fees and royalties.


Some of the advantages of franchising, according to experts, are access to a successful business model of operation, trademark recognition, management and employee training, access to ongoing research and development endeavours, proven profitability and a higher business success rate than individual start-ups.


The Commercial Service Section of the United States Embassy, Lagos, in a report titled, “Overview of Franchising In Nigeria,” provides the statistical data on franchise initiative in Nigeria, saying that franchisers have a golden opportunity to play a leading role in helping develop the concept in the country.


The report gives the value of the market in the country as $1.5bn. Analysts and international franchise consultants, including FDS, have also projected that the industry in Nigeria has the capacity to double its current value by the end of 2012, indicating a target market size of between $3.5bn and $4bn.

http://www.punchng.com/Articl.aspx?theartic=Art201110171471775

Why are fast food chains rushing to Nigeria by the way?. We want US IT companies to ship jobs to Nigeria and not KFC shipping chicken to Nigeria.

What is the pix of Iwe ala doing here.
Does fast food have anything in common with subsidy remover?

aloy/emeka:

Why are fast food chains rushing to Nigeria by the way?. We want US IT companies to ship jobs to Nigeria and not KFC shipping chicken to Nigeria.

Those will come when our communications are 100% sorted, we still have some way to go. The Kenyans have done it, but we are just starting out.
What we really need though are our very own homegrown IT powerhouses. Maybe, I'll build the first one in Warri! LOLZZZZ!!!!

Its a very good sign of where the country is headed when businesses begin to run out of Europe to Nigeria. It also translates to high paying jobs, training and opportunities.
We really could do with the improvement in our organisational abilities such will bring.
Nice one Team GEJ!

Beaf:

Those will come when our communications are 100% sorted, we still have some way to go. The Kenyans have done it, but we are just starting out.
What we really need though are our very own homegrown IT powerhouses. Maybe, I'll build the first one in Warri! LOLZZZZ!!!!

Its a very good sign of where the country is headed when businesses begin to run out of Europe to Nigeria. It also translates to high paying jobs, training and opportunities.
We really could do with the improvement in our organisational abilities such will bring.
Nice one Team GEJ!

KFC, 7-11 , BK,PizzaHut and co are no high paying jobs abeg. What we want is Cisco, Merck, CAT, NIKE, VAG, GM, APPLE, etc. If Pepsico wants to come to Nigeria, they should come big time and not sending their boy-boy companies like PizzaHut and KFC to Nigeria.