Wednesday, November 13, 2024
- Trending/Mohammed Asibelua is the executive chairman of Equinox Group, a company that is actively pursuing franchising opportunities in the fast-food sector. Drawing on Mr Asibelua’s extensive experience and expertise, Equinox Group is ideally positioned to launch international franchises in Nigeria, a country that currently accounts for more than 40% of imports to West Africa. This article will explore the benefits of franchising for both franchisees and the Nigerian economy. In essence, franchising is the practice of using a firm’s brand and business model for a prescribed period of time. The owner of the franchise is known as a ‘franchisor’, while the individual or business acquiring the franchise is called a ‘franchisee’. The continuing relationship between the franchisor and franchisee provides the franchisee with a licensed privilege to do business, as well as offering assistance in training, marketing, organising, merchandising and managing that business in return for a monetary consideration. Franchises are a popular form of entrepreneurship in a diverse range of industries today, including everything from fast food to the petroleum market. Franchises present franchisees with the opportunity to become involved in a tried-and-tested business. To appeal to prospective franchisees, franchisors must have a well-known and successful brand, eliminating the need for small business owners to experience the potentially expensive trial-and-error methods typically associated with launching a new enterprise. Franchises also position entrepreneurs for the best chance of success by compensating for their individual weaknesses. For example, if the small business owner falls short in terms of marketing and sales, then franchising can help them to access a readymade market, relying on a recognized brand name rather than attempting to establish their own from scratch. One of the biggest problems faced by small business owners today is a lack of support in dealing with government departments and other entities. Franchisors can provide invaluable assistance in this aspect by offering finance, training and trade discounts. In addition, franchisors also offer the benefit of economies of scale through the bulk purchase of materials, enabling franchisees to drastically reduce their overheads. Another key benefit of operating a franchise rather than attempting to launch a brand from scratch is easier access to quality staff, with job seekers typically showing a preference for well-known employers rather than new organisations. With big brands, the name alone entices the best applicants, enabling franchisees to swiftly recruit from a high-calibre pool of human resources. Over the years, franchising has grown to become one of the most successful means of establishing and launching a new venture in both developed countries and emerging markets. Franchising is an effective way of ensuring business growth, facilitating a transfer of skills while still encouraging private ownership and entrepreneurship – paving the way for new incomes and boosting standards of living in many countries. For new businesses and start-ups, franchising offers a means of developing and nurturing entrepreneurial talent and promoting transparency and good corporate governance. With Nigeria’s consumer-class growing at a rapid rate, the Nigerian Government is exploring new opportunities for unemployed citizens to capitalise on the predicted tripling of the country’s consumer goods market by 2030. Recognising the vast potential of international franchising to boost the Nigerian economy, Equinox Group is actively purchasing franchising opportunities, with a particular focus on the fast-food sector. With a total asset value of more than $600 million today, Equinox Group’s products, services and skilled personnel have helped the company ensure a strong African representation in all of its operating sectors, including the energy, mining, real estate, shipping, logistics and telecoms sectors. With diversified interests in a range of globally operated sectors, Equinox Group is the leading investment group in Nigeria today, having created and maintained its competitive edge through its experience, knowledge, capital strength, relationships and ability to obtain external financing where necessary.
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