International Conference And Expo For Franchise 2008 Organized By Riyadh Chamber Of Commerce

Al-Bawaba:

Abu Ghazaleh: ‘Many companies worldwide make the mistake of franchising their brands for quick profit.’

Speaking in front of participants at the International Conference and Expo for Franchise 2008, organized by the Riyadh Chamber of Commerce June 1–3, 2008, Eng. Rami Abu Ghazaleh, CEO of ALBAIK Food Systems Food Ltd., warned companies against falling into the trap of randomly granting franchises for quick profit and strongly advised them to first set up an administrative mechanism consisting of specialized personnel to study franchise applications and supervise implementation.

An initiative to enhance new trade and economic opportunities in the Kingdom, the conference is part of the Chamber’s efforts to make Riyadh the centre of business franchising in the Kingdom.

‘We do not have to go back 50 years in order for the Arab Market to go through the same enhancement phases that the international markets did aiming to reach Franchise organizations, but instead we have to benefit from their experiences,’ said Eng. Rami.’

Eng Rami went on to state the need for effective legislation to be put in place covering both the franchisor and the franchisee in order to protect the franchise’s reputation and maintain credibility as a brand.

He also raised the issue of brand counterfeiting and copycat operations, pointing out that in most Arab countries there is a need for stronger rules and greater cooperation between companies and trademark registration authorities in order to defeat the illegal activities of the growing number of experienced counterfeit practitioners who are stealing the rights of legitimate businessmen.

Read on…