Development Programs of the

1

• Development Programs of the
• Nigerian International Franchise Association
• Dr. Augustine Egbunike
• Chairman
• Seminar On How to Support and Conduct
  Franchising for Effective Economic Development
• Rabat, Morocco
• November 13 17, 2006
• Joint Africa Institute

2
Introduction

• The Nigerian International Franchise Association
  (NIFA) is the lead advocate of franchise
  development in Nigeria.
• The organization was formed in 2002.
• NIFA has 52 Corporate, Associate and Subscriber
  members.

3
Introduction

• NIFAs 10 member Executive Committee is composed
  of representatives from all franchising
  stakeholders in Nigeria franchisors,
  franchisees, financial institutions, legal
  practitioners and the government.

4
Progress made in 2006

• Public Awareness and Education is key to the
  Development of the Nigerian Franchise Sector.
• In May 2006, the Nigerian International Franchise
  Association collaborated with the U. S.
  Commercial Service, Lagos to present a
  Franchising Seminar Leveraging Franchising for
  Business Growth and National Development at the
  CTO Exhibition.

5
Progress Made in 2006

• Franchising was choosing as the theme of the
  Annual Computer Trade and Office Equipment
  Exhibition (CTO 2006) with the goal of helping
  Nigerian technology companies understand the
  benefits of franchising as strategy for business
  growth.

6
Progress Made in 2006

• Franchising Experts from the USA, South Africa
  and India discussed the impact of franchising on
  American, South African and Indian Economy and
  its potential impact on the Nigerian Economy.

7
Progress Made in 2006

• The highlights of the Seminar was a presentation
  by Nic Louw, the South African Franchise
  Consultant Franchising A Transformational
  Strategy for Business Growth and National
  Development.

8
Progress Made in 2006

• Mr. Louws Projection of 69,000 franchise
  businesses for Nigeria became a national debate
  among the news media, Nigerian franchising
  stakeholders and a Talking Point for the
  executive board members of the Nigerian
  International Franchise Association.

9
(No Transcript)
10
Progress Made in 2006

• The Impact of the 2006 Seminar on Franchising was
  significant
• Two major Nigerian Banks, Zenith International
  Bank and Fidelity Bank (both co-sponsors of the
  seminar) now work with Nigerian franchisors to
  provide funds for their franchisees.

11
Progress Made in 2006

• NIFA Secretariat continues to receive enquiries
  from Nigerian companies interested in expanding
  their businesses using the franchising model.
• More than 500 membership applications have been
  processed at NIFA Secretariat since the 2006
  seminar.

12
Progress Made in 2006

• NIFA seeks the expertise of Business Development
  Services providers to help Nigerian businesses
  achieve their expansion goal using the
  franchising concept.

13
Progress Made in 2006

• NIFA continues to identify and develop
  partnerships with relevant government and non
  government agencies that are key to the growth of
  the franchise sector.
• Our newest partner is The Nigerian Directorate of
  Employment (NDE).

14
Progress Made in 2006

• The Nigerian Directorate of Employment charged
  with the responsibility of job creation agreed to
  work with NIFA for the common goal of using
  franchising as a tool for employment generation.

15
Progress Made 2006

• In September 2006, NIFA adopted a constitution
  which lays the fundamental principles for its
  governance.
• A code of Ethics which will set standard and
  guidelines for NIFA members is in the works.

16
Challenges

• Protection and Enforcement of intellectual
  property is one major challenge facing
  franchising in Nigeria.
• Breach of franchise agreements, Trademark
  infringements are increasingly common.

17
Challenges

• Financing is another challenge.
• Start-up cost for local franchises in Nigeria is
  between 50,000 to 75,000 (45 million or more
  in local currency). This is a high investment.
• Franchisors (local or foreign) do not provide
  loan guarantee to prospective franchisees.

18
Future of Franchising in Nigeria

• Franchising faces many challenges in Nigeria but
  has unlimited potential for growth.
• The Nigerian SME Sector has begun to understand
  franchising and utilizing the concept for
  business growth

19
Future of Franchising in Nigeria

• The public-private sector partnership initiative
  of the Nigerian government is helping NIFA to
  work with relevant arms of the government for the
  development of franchising

20

• www.nigerianfranchise.org