26 March 2021 www.bahrainthismonth.com TO OWN OR TO RENT Business Expert, Pria Masson Tanwar, explores franchises and brands, and what it means for your business. The other day, while driving down one of the busy highways here, I noticed how many new eateries seem to have opened. Somehow, it got me thinking about the business case for having your own brand versus franchising an established brand – which is also a popular route in the GCC region. Both routes have their own set of advantages and disadvantages. So, this month, I thought I would delve into understanding the key legal and business aspects that need to be assessed when making this decision. To simplify this complex decision process, I have categorised the key factors into the four R’s of the decision-making process: Reason, Realm, Resources and Restrictions. Reason This is the core question that needs an answer at several points of the life cycle of any business. The Reason refers to asking several “why” questions. Why is there demand for the product or service being offered? Why will the customer choose your product or service instead of a competitor’s? Why is the product or service being offered in its chosen location? Why will the customer continue to focus on your product or service? These questions are critical because they define the way forward. So, whether you want a to start a brand or franchise one, depends on whether the product or service is catering to a specific audience, to a specific experience, or to an experience that has the potential to make money. For instance, if there is a market for a specialised coffee or cupcakes or a children’s activity, but it requires a certain brand to back it, then a franchise or quasi franchise could be a way forward. A quasi franchise is leasing the equipment from a specific brand and marketing based on the reputation of that brand. commerce
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