Franchise sector professionals to get training
By Esther Teo
THE booming franchise industry here is set to get a lift in standards with the launch of Singapore’s first certified programme to train industry professionals.
Some observers say the Republic is shaping up as a regional hub for franchising - which is when a new outlet of an existing business, such as a restaurant chain, is sold to a budding entrepreneur.
The Certified Franchise Executive Programme, launched yesterday, is a collaboration between the Franchising & Licensing Association Singapore (FLA) and the Institute of Certified Franchise Executives in the United States.
The objective: to train and equip franchise industry professionals with the necessary knowledge and skills in areas such as operations, finance and international development.
Officiating at the opening of Franchise & Licensing Asia (FLAsia) 2009 at Suntec convention centre, Senior Minister of State for Trade and Industry and Education S. Iswaran said the minimal investment and labour costs of franchising made it a preferred strategy for small and medium-sized enterprises.
Highlighting Singapore’s ability to house and build global brands, he also noted that the strong intellectual property (IP) regime here made it attractive for many foreign companies to house their franchise IP systems and rights here.
The number of franchise concepts in Singapore has grown from 380 in 2003 to about 500 today, generating revenue of $8 billion last year - and that is expected to increase further.
Mr John Reynolds, president of the International Franchise Association Educational Foundation, said the rapid growth of franchising in the region has led to a greater demand for people who can effectively manage these businesses.
‘We have a manpower shortage in terms of people with this expertise and the certification will supply the kind of expertise that is needed to manage these businesses and take them up to the next level,’ he said. The curriculum will be evaluated regularly to keep up with evolving trends and markets that might require new knowledge and skills, he said.
FLA chairman Douglas Foo said it was important for franchise business models to be fitted to individual markets, taking into account cultural and economic differences, which are some of the adaptive and practical skills that will be taught by the programme.
Most of the exhibitors that The Straits Times spoke to at FLAsia had no doubt that Singapore was on its way to being a regional franchising hub.
Said Mr Jason Kikot, marketing director of Coolspot Unlimited, which franchises sweet vending machines: ‘This place is going to be dynamite. We’re at a crossroads right now and have chosen to start off in Singapore because this is a vibrant and exciting place to be in.’ He added that if the business takes off locally, there are plans to further expand into the South-east Asian region, eventually making Singapore its regional office.
Source : Straits Times - 16 October 2009
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