Franchising In Singapore

InfoFranchise.com:

Singapore is worldwide known for its strategic location for doing business; this country is well-equipped in understanding different cultures and languages as it has a mixture of tradition and cosmopolitan sophistication.

Its franchising industry stretches back to the 1970s when companies such as Shell, Esso, Singer and Bata operated under licensing arrangements similar to the current franchise concept.

During the 1980s, Singapore-based companies began to acquire rights over some international franchises such as McDonald’s, Kentucky Fried Chicken (as it then was), Pizza Hut, Body Shop, 7-Eleven, Benetton, Esprit etc. There are currently about 170 foreign franchises present in Singapore. The prevailing sectors are education and training, restaurants and fast food.

As there is no franchising code or act in Singapore, the relationship between franchisor and franchisee is governed by general contract law. Despite of this fact, quarrels are very uncommon in Singapore and, usually, they are friendly solved and rarely they are ended by Courts. This is due at the excellent system of laws of this country and its rules concerning commerce and business.

Unlike other countries, Singapore allows foreign franchisors to develop their franchise without their physical presence in the country. Concerning the agreement, the parties are free to establish the clauses and it could be written in every language.

Franchising in Singapore can trust on the Franchising and Licensing Association (FLA). Formerly known as Singapore International Franchise Association (SIFA), it was established in 1993, with the mission to nurture and develop Singapore’s franchising industry, promoting this country as a franchise hub world wide. Thanks to its partnership with government agencies and bodies, both national and international, the FLA can assist its members in their international marketing programs.