| Danial Norjidi |
FRANCHISING opportunities were highlighted in a dialogue organised by DARE (Darussalam Enterprise) in collaboration with the Embassy of the United States of America in Brunei Darussalam yesterday.
Held at the Design and Technology Building, the dialogue explained to attendees how franchising works, and how it can benefit local entrepreneurs, not only in the Brunei market but also abroad.
The dialogue featured presentations as well as panel discussions, in which various facets of franchising were touched on.
A number of speakers took the stage, from DARE, the US Embassy and as Bank Islam Brunei Darussalam (BIBD) as well as entrepreneurs that have run the Burger King, KFC and Wayback Burger franchises in Brunei.
The proceedings began with an introduction to franchising by the CEO of DARE, Soon Loo.
He noted in one of his slides that the worldwide franchise output value is US$892 million. He also said that the advantages of signing up with a franchise include: a proven business model, branding and knowledge transfer.
On the other hand, there is a need to adapt to locality, the requirement for high professionalism as well as franchise fee and negotiation.
In his presentation Soon also shared a flowchart of franchise process.
The first part of the flowchart begins with ‘finding opportunities’.
Here it was stated that DARE & partners can help to identify, support and provide guidance. Next is ‘negotiating’, and here it was said that industry experts can help to finalise deals.
The US Ambassador to Brunei Darussalam, Craig Allen speaking yesterday. – PHOTOS: DANIAL NORJIDI
Some of the attendees during the event.
This is followed by ‘launch’, where support is provided by banks and legal firms. Lastly is ‘expanding in Asean’, as the company should be looking to grow their business.
The US Ambassador to Brunei Darussalam, Craig Allen then took the stage to speak about growing franchises in Brunei and Southeast Asia.
“Like many Americans, I had my first formal job in franchise,” he said.
“I learnt many things such as showing up on time, having the right work attitude, personal cleanliness, customer service and teamwork.”
Working at a franchise is a wonderful first step into life’s lessons for all young people, he said.
“Franchises will help the economy and play on Brunei’s strengths: rule of law, lack of corruption, strong currency, capital, managerial talent and strong neighbourhoods,” he said.
He highlighted that franchising is about many things: relationships, brands, systems and support, investment, entrepreneurship and territory.
“At its core, franchising is about relationships – about how the franchisor supports the franchisee and how the franchisee contributes to the global network and brand of the franchisor.”
“Franchising is a contractual relationship. Every franchise is a license. The owner of the brand is the franchisor. He sells you the licence.
“Then, he supports you. You purchase the license with a contract then you are responsible for operating the location, serving the customers and dealing with all local issues – in accordance with the licensing terms in the contract.”
Franchise arrangements are about systems and support, he said. “Now, let’s be clear. You are responsible for management and day-to-day operations, but you will get support from franchisors.”
“The investment that you are making is long-term,” he said.
“You should look at it as a profoundly important personal or family investment that, if done right, can make you comfortable for generations.”
One cannot simply make this investment and then just sit back and collect profit, he said.
“Every franchise is a small to medium enterprise (SME), operating in the context of the network.
“The skills required to operate successfully are the same as any SME.”
Another presentation came from US Commercial Specialist Lucien Ong, who spoke on potential franchise possibilities from the US.
He highlighted that opportunities exist not only in food but also other industries such as automotive, cleaning services, corporate services, sports and education.
After the presentation, Soon Loo moderated a session in which Del Goh and Deno Goh, who have both had successes of their own with franchises in Brunei, shared their stories and franchise experience.
The dialogue came to a close with a session that discussed conclusions and next steps, featuring a panel comprised of DARE’s CEO Soon Loo; US Ambassador Craig Allen; Mubhashar Khokhar, Managing Director of BIBD; and John Burgos, Managing Director of JonRidge (B) Sdn Bhd.
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