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Development Programs of the

Nigerian International Franchise Association

Folu Ayeni

Chairman

Seminar On: How to Support and Conduct Franchising for Effective Economic Development

Cairo, Egypt

November 20 – 23, 2005

Joint Africa Institute

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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

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Introduction

NIFA’s 10 member Executive Committee is composed of representatives from all franchising stakeholders in Nigeria: franchisors, franchisees, financial institutions, legal practitioners and the government

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Progress made in 2005

Folu Ayeni, owner of Tantalizers Restaurant, second largest fast food chain in Nigeria and second largest indigenous franchisor was elected NIFA chairman in May 2005

NIFA conducted merger talks with all franchise splinter groups in Nigeria that resulted in their agreement to come under its umbrella

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Progress Made in 2005

NIFA created the following steering committees:

Membership: To expand membership, recommend new members to the board

Legal: Work with relevant arm of the government to create legal and regulatory framework that will enhance franchising best practices. Advocate ethical conducts in all franchise transactions

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Progress Made in 2005

Professional Development Initiate and organize franchising

workshops and seminars to target member and non-member franchisors, franchisee, small business owners, intellectual property attorneys, banking executives and other professional bodies contributing to the Nigeria franchise sector.

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Progress Made in 2005

The Professional Development Committee is also responsible for promoting NIFA programs to the public through the media and franchise expositions

Finance : Identify sources for funding and ensure the Association becomes self-sustaining

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Agenda for 2005 / 2006

Capacity Development Strategy

International Seminar on Franchising The 2nd Annual Seminar on

Franchising will be held in Abuja on April 2006 in collaboration with the National Office for Technology Acquisition And Promotion – NOTAP (Nigerian government agency that regulates licensing and franchising activities in Nigeria)

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Seminar On Franchising Contd.

Purpose is to accelerate awareness for the concept of franchising to the Nigerian public

There will be a mini-exhibition to introduce franchisor and franchisee members’ products and services

1st in the series of NIFA seminars was held in March 2004 in collaboration with NOTAP with representatives of World Intellectual Property, Nigerian Franchise stakeholders, franchising experts from Europe and Canada in attendance

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Agenda 2005 / 2006

Technical Assistance Lack of financial and technical

resources is a major problem facing NIFA.

The Association has resolved to to seek assistance for its professional development programs for members from the following international bodies:

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Technical Assistant Contd.

Joint Africa Institute Franchise Association of South

Africa International Franchise

Association, USA, has given some assistance in the past – provided free exhibition space at the Annual International Franchise Expo, Washington DC, USA

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NIFA Members at the 12th International Franchise Expo, Washington DC, USA

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Technical Assistance Contd.

Professional Development Workshops will focus on franchising basics, operations, sales, financing and legal.

Beneficiaries to include Franchisors / small business owners, franchisees, banking executives and legal practioners

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Development of Nigerian Concepts

A survey by NIFA puts the number of Nigerian franchise systems (business format and trade name) at 3 with 50 franchise units(approx.)

Undetermined number of Nigerian businesses has potential for franchising

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Development of Nigerian Concepts Contd.

Foreign franchise systems in Nigeria are estimated at 10 with over 1000 units mostly trade names.

When we compare these figures, we can see that the indigenous franchise systems represent 5% while the foreign systems represents 95% of total franchise operation in Nigeria.

The gap is too wide

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Development of Nigerian Concepts Contd.

NIFA hopes to take a corrective action by encouraging Nigerian businesses to develop local franchises

It must be noted that while NIFA prioritize the development of local concepts, it support the expansion of foreign franchises into Nigeria to enhance technology transfer and know - how

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www.nigerianfranchise.org