According to the International Franchising Association (IFA), an estimated 120 industries are franchising. This model is forecast to grow more and more; IFA estimates more than 26,000 locations. Franchise points will be added in 2021, helping to fill the gap in 2020.
It also forecasts that global franchising employment will grow by more than 10% to nearly 8.3 million workers. Of these, 800,000 new jobs will be created, most of which will be in the retail, food, and service sectors.
Vietnam’s economy is being heavily affected by the Covid-19 epidemic. There is a common perception that the epidemic will deal a heavy blow to the economy. Indeed, the pandemic will negatively affect some industries, but franchising is an immune business, not narrowing the customer base.
Most companies using this strategy focus on retail, food, and “essential” services. During a webinar on this topic, Vu found that investors are still very optimistic and excited.
A franchise is a license granted by one organization to another individual/business from a legal perspective. At its core, however, franchising is a human-to-human relationship.
The need for franchising arises when the franchisor owns the brand assets sufficiently large, wants and can expand the brand but does not have the financial means.