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Franchise News - Article
06.06.2009
How can difficulties met by franchising in Morocco be explained?
How can difficulties met by franchising in Morocco be explained?
1) Too many investors act as speculators and not as entrepreneurs due to the land high cost. Franchisee and master franchisees sometimes prefer to bet on the fact that this situation will continue even it scares bank, franchisors and the State.
2) This tendency is made by the shortage of malls adapted to stores and by the difficulty met to renovate the town centre. There is no doubt about the priority of this building site for the government.
3) The legislation about commercial leases is very criticized. It encouraged high rents.
4) Future Moroccan franchisees (as well as for future master franchisees) find franchising advantages very attractive (brand, concept, know-how, success, assistance…and an image socially enhancive thanks to the brand identification) but they do not read contacts, are not aware enough about constraints. They don’t take time enough to select the good franchisee, etc…They are likely to buy a brand, to place money to the bank, to give too much trust to the franchising system forgetting that they have to bring their sweat, their work and their personal engagement at all level…Franchising is not the Eldorado neither it is a insurance to succeed in franchising…
5) Information about franchising, its advantages, its constraints, its working rule, etc…is not diffused enough neither it is structured instead of the wishes made by the Moroccan Franchising Federation that is not aware yet of its political possibilities.
Entry fee are tracing on the international level are sometimes disproportionate.
From www.ac-franchise.com
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