Franchising Requires Strategic Partnership -says Engr. Bindir
The Director General of the National Office for Technology Acquisition and Promotion (NOTAP), Engr. Umar Buba Bindir says franchising business across the globe needs strategic partnership between the franchisee and the franchisor to succeed.
Engr. Bindir stated this during a two day training programme on “Status and Development of Franchising in Nigeria” organized by NOTAP at the Raw Materials Research and Development Council (RMRDC), Auditorium, Abuja for the management staff of NOTAP. The training workshop was attended by over sixty participants from NOTAP and the Raw Material Research and Development Council (RMRDC).
He said the training was designed to address some critical issues relating to “Status and Development of Franchising in Nigeria” as an emerging sub-sector of the national economy. He added that the training was necessary because in the process of analyzing technology transfer agreements, NOTAP observed certain lapses with some franchise agreements submitted for registration where agreements between Nigeria franchisee and their foreign counterparts were in most cases conducted in an uncoordinated manner contrary to the international best practices.
He further stressed that the training was designed to provide a platform for the sensitization of participants as well as examine and proffer solutions to the observed lapses. This according to him could lead to the promotion of indigenous franchising development and participants of Nigeria professionals in the sub-sector if successfully carried out.
In his presentation, the Executive Secretary of Nigerian International Franchising Association (NIFA), Mr. O. Babalola explained that a full blown Franchising business model requires huge capital for its operation.
He further explained that though the business is relatively new in the continent, Nigerian entrepreneurs are fast cueing into it, more especially in the fast food model. He added that what the country requires is a pragmatic efforts to develop end package indigenous dishes to form our own locally development franchise model, whereby these dishes are sold in all corners of the continent like Mr. Biggs, Big Bite and some other franchised model.
He promised that his association will continue to partner with NOTAP to enhance the promotion and development of technology, innovation, entrepreneurship as well as investment in Small and Medium Enterprises (SMEs) in Nigeria. He added that franchising has become a globally accepted business model for SMEs development in most economies.
He added that Franchising is a framework or an arrangement relating to a system which can be applied to economic activities using the concept of the principal of replicability in business.
In his closing remarks, Mr. Babalola called on the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to join hands with NOTAP to fast track the development and promotion of franchising for the overall socio-economic development of the economy.