For your brand value to increase, your dealers must be profitable and the end consumer must be happy

PARA Magazine Röportage -  Ayşegül Küçükkurt - October 23, 2022

- Is it profitable to grow with a franchising network in Türkiye’at this time?

Systemically, franchising means the branching of a brand through investors, thus expanding the brand horizontally.

But the condition of permanence is the stability of service, quality and price at the final point of consumption, i.e. the dealers.
 
We need to celebrate and support our retailer brands that focus on the profitability of their dealers/franchises, despite the cost inflation they are experiencing and the difficulties in the supply of raw materials and semi-finished products.
 
Our franchised and franchising brands that sacrifice a significant amount of their profits to keep consumer prices in balance, that care about the satisfaction of the end consumer by increasing service quality while maintaining the profitability of their dealers, will always be one step ahead.

In order to increase your brand value in the franchise sector, it is essential that your dealers are profitable and the end consumer is happy.

When built-in inflationary periods are managed correctly by brand owners, brand value increases even if brand profitability decreases.

- Should investors focus more on chain markets or should they look for franchises of boutique companies? What is your advice?

Investors should first and foremost choose a line of business that they would love to be in charge of… 

This could be an English education franchise or a software franchise… 

This could be a börekçi,  üüçüncü ncü generation coffee chain franchise.

There are so many options now!

If the investor is also the owner of an empty store, he/she should decide on the appropriate product or service line for that location… 
For example, would it be more profitable to open a grocery store in that location or a dry cleaning franchise? Once the investor has narrowed down his/her options, he/she should seek professional services…  
In addition to the profitability of the business, the prospective investor should examine the operational support that the brand owner will provide along the way, in short, the strength of the brand to be represented.


- What is the profit of investments made in Turkey through franchising? How it contributes to the economy

Franchising, which is an organized trade system, means that the tax losses of the state are minimized. Çünkü each franchise/dealer is inspected and controlled by the brand owner company, and trade without invoice is not allowed. 

Franchise and dealership means that under properly functioning market conditions, streets and shopping malls become busier, employment and consumption increase, and the economy revives.

Franchises and franchises mean a contract, a contract between the giver and the receiver. 
In the United States, the home of franchising, the system is also supported by specialized courts subject to private law legislation.
As the Turkish franchise sector, I must say that we now need specialized courts with special commercial laws and legal legislation.

It is very important to secure the rights and obligations of both dealers, brands, and shopping mall and high street store owners!

- What are the economics of franchising right now? The market's büyüklüğü?

I have not come across any current market research on this subject, conducted by an expert and independent research company. From time to time, we hear and read statements based on estimates and sampling of the total turnover of all brands and dealers. However, I do not find it healthy to declare numerical estimates about the total turnover of brands and dealers that are not publicly traded and have not been independently audited.
On the other hand, we have our own database, which is up to date, 
40th000+ franchise/dealership investor candidates, 
Around 800 large and small franchisors, 
Around 4,000 supply companies supplying ürün to brands and dealers, 
There are also around 1500 companies supplying services.

- Investments are being made in many sectors such as food, textile and coffee. So which söktörün dealership is more advantageous for you right now?

While cafe brands remain popular again, takeaway-oriented, relatively economical fast food brands that made a serious attack in the pandemic period… Döner brands, börek brands and dessert brands, which are also growing fast in this period, have an advantage… So food is always one step ahead again…
Most ready-to-wear and footwear store concepts prefer to franchise abroad, but there are also franchisors in Turkey… Home textile and mattress brands are doing well, but furniture is still not on the radar of franchise investors except for a few brands.
Market chains have made great progress with their "mini" concepts, which are advantageous and attract a lot of investor interest.
On the other hand, the education sector is profitable, but it is preferable that the investor candidate meets the criteria…  
Beauty care, nail care, jewelry and accessories are in the field of interest of female investor candidates. Real estate is second only to food in our country, as it is in the world, and it has a structure that can organize its training and operation system better than other sectors in terms of franchise.