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    FBC- Dr. Khaled A. Taki , addressing
    The Franchise Conference in Syria on
    the Topic The Franchise Cycle 19.6.2007
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    FBC organizes a lecture at NDU , FBC- Dr. Khaled A. Taki
    Topic : The Franchise Cycle

    With The Daily Start
    Taki Business in person
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    FBC- Dr. Khaled A. Taki , addressing
    The Franchise Conference in Kuwait on
    the Topic The Franchise Cycle 23.12.2005
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    A Brief History of Franchising in the Arab World by FBC:


    During the past fifteen years from 1997 there has been a considerable rate of rising interest in the area of franchising and in particular the “Food and Beverage” sector leading to a large number of foreign companies coming to the Arab World and granting master franchises to local companies in the Arab World countries.

    During the decade of 2000 to 2010, Franchising in the Arab World made a tremendous penetration and has become a very important sector for the development of the national economies, in particular because it has provided a very high degree of employment for the local population, although it could do much better if proper training was introduced.

    Today, the Arab World is facing a dilemma as more and more Arab countries apply for membership in the WTO, (the World Trading Organization) which stipulates that, no member country can in fact join the WTO if it has any monopolies operating in that country, and exclusive distribution rights to products in one country is certainly classified as a monopoly. Therefore, the system which was adopted for the past 50 years in the Arab World involving the exclusive distribution of a product in an Arab country is now coming to an end.

    The dilemma is how do you replace the exclusive distribution of a product in a country and maintain market share as well as sometimes even domination?

    It is quite clear that today the Kingdom of Saudi Arabia is the largest market in any Arab country. It has over 25 million people, tremendously large in terms of geographical location as well as territory, and free very active commercial regions be it that in Riyadh, Jeddah, and Eastern Province.

    The Kingdom of Saudi Arabia also has the highest number of exclusive distribution rights and the highest number of consumers with disposable income; as such it faces a real dilemma now that it has applied for membership with the WTO and is soon to join in the years 2013-2014.

    Recently, it has come to the attention of FBC that the Kingdom of Saudi Arabia has very cleverly thought of passing a law which would introduce Franchising into the Kingdom and as such our observation is that most if not all companies that hold exclusive distribution to products within the Kingdom, will opt to change their agreement with the manufacturer from exclusive distribution to Master Franchisees.

    In the event that the Kingdom of Saudi Arabia should in fact pass a law which deals with Franchising, it will a historic day because up till today there are no laws in any Arab country which cover Franchising. There are laws which cover intellectual property, exclusive distribution, manufacturing rights and others but not deal specifically with Franchising.

    Not only will the Kingdom of Saudi Arabia wave the way for other Arab countries to follow the Kingdom footsteps, but also it will allow for any disputes, arbitration, and conflict resolution to be conducted within the Kingdom because of the law that is being proposed.

    It has been over 10 years since FBC and Dr. Khaled. A. Taki in particular, has been campaigning for a franchise law to be adopted by any Arab Country but unfortunately, this has not happened. Now, the news coming out of the Kingdom of Saudi Arabia that this might take place as a result of the WTO application for membership.

    FBC strongly believes that Franchising, in particularly the establishment of Arab Franchisors in the Arab World who can grant single franchises to the local Arab population is the only solution to unemployment in the Arab World which is at an alarming rate of 25 percent almost in most Arab countries.

    With a proper law covering all aspects of “Franchising” that will protect both the Franchisor and the Franchisee, there is no doubt that the Arab World will be able to benefit from the Franchise Sector which is already contributing to the national economy and it will be able to also cure itself from the unfortunate “unemployment virus” which continues to plug the whole Arab World.

    It is the sincere hope of FBC that the above has shade some light on the brief history of franchising in the Arab World and the future aspects of Franchising in the Arab World.

    Written by Dr. Khaled. A. Taki
    On the 19th of December, 2012

    Calendar Of Upcoming Activities

    The Franchise Phenomenon
    Its rapid adoption by Lebanese Franchisors
    for the Arab Markets
    Presented by
    Dr. Khaled A. Taki, Senior Consultant of
    F B C - Lebanon
    at Gefinor Rotana Hotel - Beirut
    Founded in 2007 in Beirut Lebanon to
    serve the Arab World    click here
    Member of the
    College of Experts. 2007 2008    click here
    Articles and Interviews by
    Dr. Khaled A.Taki

    1 The Daily Star Franchise Guru
    2 The Liwa Legislative Campaign for a Franchise Law
    3 Franchising in the Middle East and Arab World
    4 Franexcel - spring 2008
    5 Franexcel - summer 2008
    7- FrancExel-Lebanese_Franchisor
    8- The Liwa Legislative Campaign for a Franchise Law
    Franchise Business Consultants ®
    Beirut Lebanon

    Franchise Business Consultants is ready to help you develop a reliable and dependable Franchise Development package bi lingual English and Arabic , includes a realistic long term strategy :

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    - Designing & Developing the Franchise Program Tailor made to fit your own organization
    - Franchising Growth Planning & Implementation Five year plan with modules and brochure
    - Franchise Operations Manuals , bi lingual English and Arabic
    - Franchise Training Manuals , bi lingual English and Arabic, with rotating tasks for the staff
    - Franchisor International Division implementation with new branch opening cycle and check lists
    - Franchisors and franchisees training workshops , all in-house and with simulation sessions
    - Franchisor & Franchisees Relationship Building based on quality control systems and territory designation
    - Strategic Franchise Marketing and testing through mystery dinners to outlets and competition
    - Franchise Cash flow Management to assist and monitor performance of all franchisees
    - Franchise Feasibility , complete testing of brand and pricing structure per module
    - Buying / selling a franchise , assisting both parties, Franchisor and franchisee with direct negotiations
    - Franchisee Operation business planning for three and five years based on territory
    - Master franchise area development complete with analysis of obstacles and advantages per territory