It is a business model in which many different owners share a single brand name. A parent company allows entrepreneurs to use the company's strategies and trademarks; in exchange, the franchisee pays an initial fee and royalties based on revenues. The franchising business model is used across many industries, but it is most popular in the fast food restaurants, hotel, and casual & upscale restaura
nts industries. The franchising business model consists of two operating partners: the franchisor, or parent company, and the franchisee, the proprietor that operates one or multiple store locations. Franchising agreements usually require the franchisee to pay an initial fee plus royalties equal to a certain percentage of the store's monthly or yearly sales. Initial fees vary significantly across each industry. One of the prime benefits is that the parent company provides the franchisee with support, including advertising and training, as part of the franchising agreement. Expansion via franchising is an attractive option for companies looking to expand abroad without incurring high costs. It is a faster, cheaper form of expansion.. Franchising industry in Pakistan is still in a nascent stage. Franchising is a relatively new phenomenon in Pakistan, but this concept has gained tremendous acceptance in this market as can be seen from the recent growth trends in the market. Most of the growth in the past few years has taken place in the food business, where the present market size for internationally franchised outlets is estimated in excess of Pak Rupees 1.2 billion (USD approximately 24 million) in terms of annual sales. Despite the fact that the franchising has a huge potential in the Pakistan’s economy, there is no local platform offering indigenous franchise opportunities in Pakistan. Entrepreneurs do not have any forum where they can find the upcoming franchising ventures and the matchmaking opportunities between the franchisor and franchisee. In this regard BSF is in the process of developing a portal by the name of “Franchising Pakistan”. Interested franchisors and franchisees will get themselves enrolled on this portal. BSF will not only help to create a linkage between the two parties and but will also assist them in completion of all business formalities including legal issues, marketing and operational plans, trainings etc. BSF will outsource the business development activities of the newly established franchise to its registered BDSPs having expertise in the required industry/sector with pre-defined and time bound KPIs.
