WHAT KIND OF INVESTMENT IS NECESSARY TO BUY A FRANCHISE?
Investment required to start a franchise depends on the industry and the type of business you are interested in. The total start-up cost of a franchise can range from USD10,000 or less, to over $1,000,000, depending on the type of franchise selected, and it also depends on if you own or lease the real estate for franchise business. According to an industry study, 70% of Franchisors charge an initial Franchise fee of USD 40,000 or less. For a single unit franchise development the initial franchise fee charged by most franchisors is between $10,000 and $30,000. The average investment, excluding real estate costs, is between $250,000 -$400,000. Similarly for a single unit franchise development in Pakistan the franchise cost vary in the same fashion. If you are an investor looking to develop an international brand in Pakistan through a master franchise agreement or multi-unit development, roughly you should be looking at a minimum $500,000 initial investment, again it all varies depending on the type of franchise and industry you choose.
WHAT ARE THE CURRENT TRENDS IN PAKISTAN FRANCHISE INDUSTRY?
Franchising in Pakistan in recent years has become the mainstream industry; from the arrival of Pizza Hut in 1993 many international Brands have entered the market, yet many more famous names to come. An unsaturated Franchising sector with high growth, high success rate, minimum competition and high returns is drawing the attention of major international Franchisors. With franchising gaining such tremendous popularity many feel this is the right time to enter the Pakistan market.
Currently, there are more than 100 Global Brands in the country; these Multinational firms have collectively invested over $1.5 billion in Pakistan and their cumulative annual revenue is around $3 billion. The Franchise market of Pakistan Comprises of Restaurants, Hotels, Couriers services, Cosmetic, Apparel, Footwear, Jewelry, Technology, B2B services, education and Pharmaceuticals Brands and continues to expand, this trend will continue for the coming years especially for food, Retailing and services sector.
Major companies with franchise operations in Pakistan include McDonald’s, KFC, Pizza Hut, Marriott, Hardees, Dominoes Pizza, Sheraton, Subway, Day’s Inn, Best Western, Dunkin Donuts, Gloria Jean’s Coffee, Mango, Papa John’s Pizza, Nike Retail, Debenhams, Levi’s, Adidas, Caterpillar, The body shop, Mother care, Nando’s, Metro Cash and Carry, Hyperstar, Solitaire, Damas, GNC, Oracle, Microsoft, IBM and many more celebrated global Franchised Brands.