Dubai Chamber seminar provides potential franchising opportunities in key sectors of Dubai

Attended by a cross-section of aspiring and established business leaders, the seminar raised awareness on the opportunities available for setting up a franchise and highlighted its legal requirements for the franchisees.

Conducted by Nicholas Stadtmiller, Senior Executive Markets, Business Support Department, Dubai Chamber, and Melissa Murray, Associate of Hadef & Partners, the seminar provided an overview of the franchising market and shared potential franchising opportunities in key sectors of Dubai. The seminar also covered the legal procedures and important commercial aspects to be considered when evaluating a franchise, as well as the due diligence procedures undertaken before the signing of a contract.

Said Nicholas,

"Franchise and agency agreements have a long track record of success in the UAE and have served as the foundation for bringing many international brands and products to the local market. The franchise business in the UAE has been estimated at Dhs110bn annually, while the global market may be as large as $4 trillion. Entrepreneurs looking to replicate a business concept established abroad in the domestic market should consider the franchise model as a viable option."

Added Melissa Murray, Associate of Hadef & Partners, "Franchising can be an attractive option for investors as a proven business model and it is used as the basis for conducting business. Franchising has the benefit of assistance from the franchisor to help the investor succeed, however franchise arrangements also come with specific commercial and legal requirements which investors should consider before proceeding.

"A very popular option for business operators, franchising can help overcome problems associated with small business failure such as lack of business experience and brand awareness. However, franchise agreements are often not straightforward and impose many obligations (commercial and financial) on franchisees which require detailed legal consideration," said Melissa.

The Business Support Department which organized the seminar at Dubai Chamber works to improve the business environment by organising seminars, roundtables, training workshops, and providing business counseling and credit rating services.