The most common model of partnership in the restaurant business is setting up a franchise relationship. The franchise is a lasting bond between a franchisor, who is the owner of a product, service, or any other style of production, and a franchisee who is an affiliate dealer willing to partake in business and share responsibilities.
The franchisor provides the franchisee with a licensed privilege to carry his business trademark under certain conditions specified in the franchise agreement signed by both parts. The franchisor usually sets some standards and regulations to protect his service or product quality and make sure it is offered in the familiar form.
Setting a franchise partnership saves the franchisee the hassle of founding a new brand from scratch and will help him avoid a lot of mistakes made by entrepreneurs. Moreover, it grants him an operating system proven to be working and successful by many other partners. It is like running from midway instead of the starting line.
In most franchise agreements, the franchisee is obliged to pay the trademark owner an initial fee to gain his confidence and obtain the business name. Moreover, he is bound to a flat royalty fee on a regular basis in addition to a custom share of profits or revenues.
The franchisee has a set of very critical responsibilities; first, he must follow the quality standards and guidelines defined by the owner in order to guarantee the continuation of his support and retain the right of using his name.
The franchisee should also create a firm base of loyal customers; this is possible by gaining their confidence through consistently providing top quality services. As a part of his responsibilities, the franchisee should make sure that the staff is well trained and capable of abiding by the set quality regulations.
Advertising and promoting the product locally is also a part of the franchisee’s responsibilities that he should undertake in a top manner and under the supervision of the brand owner.
The main challenge that each franchisee should keep in mind during the process of obtaining a franchise agreement is being able to run a big business from the very beginning, having the appetite of starting big. He should know how to run his employees, assure top product quality, and contain customers’ complaints and negative feedback, and other.
However, it is very important for franchisee to obtain a successful brand name that resonates well with customers. Investigating the available franchises is an integral step in establishing a successful franchise agreement. Most franchisors offer information about their company and brand name at no cost, this can be very beneficial in the investigation process to help in making the decision.
To land a franchise in UAE, a thorough market research is needed to study the potential opportunities available in Dubai along with all other aspects that could weigh in the business success.
Franchisees should create also a definitive profile portraying their experience and capabilities in order to be sent to business owners. Once the market research and business profiles are done, the franchisee should research the market to locate the potential franchisors more likely to accept his application.
UAE has a business-friendly environment offering robust infrastructure facilities and flexible legislation to make it easier for franchisees start and nurture their businesses. However, starting a new business in the emirates needs sponsorship from UAE national except for the free zone industrial areas scattered throughout Dubai and other states. Besides 100% ownership, free zones apply absolutely no tax on ventures within its boundaries.
YYT Food Corp previously known as Bukhowa Investment LLC was established in 1996 in Bahrain with a mission was to create a unique concept collectively of international style restaurants within food courts across the country.
YYT Food Corporation has a robust existence in many countries around the GCC, it is strategically located in many central locations including major malls, airports, petrol stations, office parks, and other.
The company is currently looking forward to expanding its existence further in GCC region and it is open for franchisees willing to apply for carrying its brand names with Vanellis, Al Magal Express, Teriyaki and Pad Thai.
For more information, please visit our Franchise page.