This Power Point Presentation is just one of those which were presented and extensively discussed during the workshop.

1. 3RDFRANCHISING AWARENESS WORKSHOP
THEME: ENTREPRENEURSHIP AND JOB CREATION THROUGH
FRANCHISING IN UGANDA
(July 28, 2011; Hotel Triangle Kampala)
Topic: OVERVIEW OF FRANCHISNG
Abbey Mutumba- +256 712 683334
(MBA,BCHM, NEVI International)
abbeymutumba@yahoo.co.uk; abbedax08@yahoo.com; amutumba@mubs.ac.ug
Franchising Researcher/MUBS
Franchise Development Executive / Abbedax

2. Content
• Overview of Franchising
• Your Challenge
• Studies on the theme
• Q&A
• Way Forward

3. Overview of Franchising
What is Franchising?
• The practice of contractual replication of a successful, time-test and proven business
model by franchisees with permission and guidance (flexible, adaptable, mutual success-
driven support) of the franchiser in right environment.
• Commercial Vs Social/Micro-franchising
• It is a collaborative strategy where both parties are committed towards mutual success
and multiplier benefits to other stakeholders in the market.
• Franchising is for any organization that enjoys proven success and uses a branch network
or any portfolio organization
• Franchising Parties/Stakeholders include the franchiser, franchisee, franchising lawyer,
government bodies, the relevant professionals, and other stakeholders
• IT IS ONE OF THE WORLD’S PROVEN ENTREPRENEURSHIP, JOB AND WEALTH CREATION
STRATEGIES in countries like USA, China, UK, India, Malaysia, Brazil, South Africa, Egypt,
Zimbabwe, Kenya, and very soon Uganda among others.
• HOW DO YOU BENEFIT?

4. Entrepreneurship and Job Creation Benefits
• No matter which form and/or type of franchising, the following benefits await you as a;
3. Franchisee
- Safer and more easier to succeed in starting-up your business
- Your own business With support/parenting from the time-tested and proven franchiser
-
-
etc
2. Franchiser
- Using other people’s money (OPM) and entrepreneurial efforts/abilities to quickly
expand the business especially in unfamiliar and complex markets like Southern Sudan
- Extra revenue and profits from the franchise fees
-
-
etc
3. Any other party or stakeholder such as a franchising consultant, lawyer, and accountant
among others.
LET US BRAINSTORM NOW!!! At least 5 benefits per category?

5. Your Challenge
(opportunities and threats)
• Success belongs to those who are ready for the
opportunities and threats
• Franchisers are aggressively starting to target the youths
in their franchisee recruitment and selection programs
e.g Valpak Entrepreneurship Award Program (Tammy,
2010)
• The world’s leading brands are now entering Uganda and East
Africa through franchising, which is a entrepreneurship, job and
wealth creation strategy- OUR THEME TODAY

6. • Our government is including the promotion of franchising
into Uganda’s national competitive strategy besides
other initiatives
• The up-coming Abbey’s Franchise Show which will bring
out the untapped franchising opportunities for you in
East African towns like Arusha, Bujumbura, Kigali,
Kisumu, Iganga, Masaka, Fort Portal, Arua, and Eldoret
• THREATS: Franchising Environment, Few local Franchiseable
Brands/Franchisers, and the Youths (universities and schools) are
not yet involved BUT Tammy 2010’s article titled ‘Youth
Movement in Franchising’

7. Example: SOCIAL FUND FOR DEVELOPMENT
“ SFD”
EGYPTIAN FRANCHISE DEVELOPMENT ASSOCIATION “EFDA”
TARGET GROUPS
 New graduates
 Small entrepreneurs
 Unemployed
 Redundant labor from Privatization
 Women
7
Source: Social Fund for Development- Egypt

8. AN EXAMPLE: Entrepreneurship and Job Creation through franchising
development through training +
training through franchise (Source: Young Africa Franchise in Gambia)
Young Africa – integral training of underprivileged young people
2 centres in Zimbabwe (2001 & 2005), 1 centre in Mozambique (2007)
vocational training
through production:
dressmaking, carpentry
car mechanics,
metal works, construction,
shoemaking, etc
Young Africa
franchises
each department
to local teachers /
training entrepreneurs community
without production: programmes:
computer applications, crèche, youth club,
commercial subjects, library, internet café,
academic coaching centre, art promotion
arts

9. Choosing the Right Franchise Partners
Right
Franchiser
(Franchiseable
Brand)
Franchise
Favorable Strategic Fit
Franchising -Complimentary
resources
Environment
-Franchising - Cultural fit at
Mutual Franchise
awareness several levels Success
-Associations
- Shared innovations
-Franchising
laws -Competitive
-Infrastructural corporate image
development - Mutually beneficial
working relationship
Right
Franchisee
(Preparedness)

10. Studies on Entrepreneurship through Franchising
• General agreement among the respective researchers that
franchising is a better entrepreneurship strategy especially
for those who are less experienced/disadvantaged BUT
have the POTENTIAL
• Selected Findings & Conclusion by Mutumba, (2010) on ‘ Perception of Franchise
Purchase as an Entrepreneurship Strategy’ -Lecturers, consultants, teachers,
facilitators, policy makers, etc who have proper understanding and positive
perception of the franchising strategy motivate and properly guide their clients
using SUCCESSFUL CASE STUDIES, and VICE VERSA
- The findings disagreed with Watson & Kirby, (2004) whose findings showed that
respondents within the lower age brackets (the youths) have the lowest level of
understanding of the franchising concept.

11. Selected Implications and Further Studies
• Lecturers/facilitators need to be guided on how to choose the right
case studies and where to encourage and/or discouraging their
customers about franchise purchase as an entrepreneurship or
business start-up strategy in Uganda and East Africa.
• More Ugandan franchising research, development, and
publications is needed
• ANY SUGGESTIONS FROM YOU?
Areas for Further Studies;
6. A bigger study that includes other dep’ts of other business schools
universities, institutes, and secondary schools that teach/facilitate
on areas of ‘Entrepreneurship, Job Creation, and Franchising’
7. A research survey on a similar topic like ‘The Public Perception and
Efficacy of Franchise Purchase in Uganda’.

12. Job Creation through Franchising: CASE STUDIES
• McDonald’s (the world’s leading food service retailer, with more
than 30,000 franchise restaurants serving 52 million people in more
than 100 countries), as at 2009. How many jobs has it created now?
• Uganda’s Warid Telecom has grown to 50 AREA FRANCHISEES, each
one running about 700 outlets/shops, each outlet employing at
least 20 staff, which continues to create an estimated 70,000 jobs
for you and me. WHAT ABOUT THE LIKES COCA COLA, PEPSI COLA, WHITE
ROSE, THE PETROL STATIONS, NAKUMATTIS, SHERATONS IN UG?

13. Some Franchiseable Brands for You
• International Franchisers
• Uganda’s Local Franchisers (1st 3 brands are Current franchisers, MUBS & UgaChick can become)

14. • In Botswana the total number of
people employed is among three
sectors
• 15% by franchised businesses.
• 25% by parastatals and independent
private business.
• And 60% by our EMPLOYMENT RATE IN BOTSWANA
government.
The franchised businesses that
Take up 15% of employment;
Commercial banks, retail Parastatal &
Chains, restaurants and Independent
Agencies Government
Franchise
Source: Botswana…………
business

15. Challenges for the development of franchising in
Botswana
• In Botswana we do not have a regulatory body to
monitor good business practice between
franchisers and franchisees.
• A lot of Batswana have no capital and some very
little earnings to put together and present as
contribution to financial institutions. These people
though are new to business and therefore need
mentoring to equip them with skills necessary to
run successful businesses.

16. • With mentoring institutions and access to
capital we can eliminate the start-up
problems mainly experienced by Batswana
entrepreneurs.
• It is imperative to consider which products
and services appeal to the Botswana market
because of a small population we have hence
limited spending power.

17. Good News for Uganda
• CICS
• Ministry of Finance,
• FIN Uganda MTTI, Justice, etc are
• This series of starting to focus on
Franchising Awareness promoting franchising-
Workshops related interventions
• More leading • AfDB
franchisers eyeing • FASA
Uganda
• Potential donors are
• Likelihood of local becoming aware and
Franchiseable Brands- interested
My Thesis

18. Back to You
• Lessons?
• Q&A after our BREAK TEA
• Way Forward for your entrepreneurial journey?

19. THANK YOU
+256 712 683334
abbedax08@yahoo.com
You are welcome to Abbedax,
Abbey’s Franchise Show, and
FIN Uganda- Franchise Investment
Network of Uganda