Asharqia Chamber organizes a program entitled: Investment Methodology in Franchising
A program organized by the Asharqia Chamber represented by the Women's Empowerment Center in cooperation with the Social Development Bank in the Eastern Province, entitled: Investment Methodology in Commercial Franchise, discussed the most prominent patterns of the commercial franchise and its advantages, in addition to its benefits for the investor.
The director of the women's branch in the bank's branch in the Eastern Province, Fawzia Al-Qahtani, spoke during the program, which was held on the evening of Wednesday, June 30, 2021, saying that the commercial franchise is a partnership between the franchisor and the franchisor, where the first gives the right to the second to conduct business for his own account, in connection with the trademark or trade name owned by the grantor excellence this includes providing technical expertise and knowledge.
Al-Qahtani said that the value of the franchise market in the Kingdom amounts to more than one billion dollars, and the growth rate of the local franchise ranges between 10-12 percent annually, noting that more than 300 foreign companies in the Kingdom have commercial franchises, pointing out that franchising is a global investment trend. A franchise unit opens every 8 minutes in the world, and 37 percent of the activities are related to food, noting that more than 785,000 units in the United States of America operate under the franchise system, employing more than 9 million American employees in franchising activities.
Al-Qahtani indicated that the Development Bank is launching a commercial franchise program to support the national economy and serve the qualified people of the country by offering several investment opportunities that enjoy high profitability rates and low-risk ratios and making them available to them by attracting projects that prove their success, in addition to concluding commercial franchising agreements. For those wishing to benefit from the bank's services, especially the targeted segments of the bank's support.
Al-Qahtani indicated that the bank offers several advantages through the program, most notably: the amount of financing is up to 4 million riyals, with a grace period of up to 24 months. The program also provides a follow-up service for projects during the establishment and operation stages and addresses the challenges facing the beneficiaries, in addition to providing training programs Specialized in business basics, and workshops aimed at upgrading their businesses and making them more efficient and competitive, as well as providing technical, financial and marketing advice to beneficiaries through specialized consultants.
