Franchise market hits $43B in 2014, now looks for 10,000 entrepreneurs
by Metin Can
ISTANBULJan 09, 2015 - 12:00 am GMT+3
by Metin Can
Jan 09, 2015 12:00 am
One of the safest and most secure branches of entrepreneurship is the franchise system, as it offers minimum risk yet maximum gain. Turkey's franchise market's volume has exceeded $43 billion as of 2014, and has created job opportunities for more than 200,000. In 2015, the franchise market will create even more opportunities and the volume is expected to increase to $50 billion. Thus, the franchise market requires around 10,000 entrepreneurs in 2015.
One of the main reasons behind the boom in franchising in Turkey is the rise of shopping malls. Today, there are around 2,500 chains all around Turkey with more than 60,000 stores, and 28 percent of these franchises are foreign brands. According to statistics of the European Franchise Federation, Turkey is now the country with the most franchises in Europe, with over 100 Turkish brands having branched out to foreign markets, and about 700 Turkish brands also working to reach foreign markets.
The success of the franchise system lies in making the right choices and there are five main criteria in this respect.
1. Suitability for you: What the franchise entails and whether the content of the job is suitable for you or not is extremely important. For example, a shy person should not buy a franchise that requires a lot of personal sales.
2. Location of the investment: Measurements and research should be conducted according to the job in question. Choosing a right location is an area of expertise on its own.
3. High availability of the franchise: You have to be careful if it is too easy to win a franchise. New chains that are developing and need money, which have not completely mastered the business, give out franchises to anyone that requests them, but then most of these franchises fail. Therefore, it is better to be careful about what brand you are investing in.
4. Research the firm: Do not be easily fooled by attractive brochures. You have to talk to the owners of current franchises, research their success rate, and learn about the past processes and procedures they have conducted.
5. Consult an attorney: Franchise agreements might contain certain articles that are hard to understand or are written in difficult language. You might be able to obtain certain privileges if you insist. Furthermore, it is important to understand the general stance of the firm and consult your attorney about anything you do not understand.
TEB, which has taken an important step towards minimizing the financial burden of entrepreneurs, has also increased the credit facilities it provides to entrepreneurs that want to start a franchising business to TL 150,000 ($64,647), without any guarantees to TL 200,000, as part of the new collaboration it entered into with KGF.
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