Franchise businesses set to be upgraded

Franchise businesses set to be upgraded

Sector seen as crucial in driving growth

A franchise opportunity on offer at a recent edition of Smart SME Expo. (Photo: Tawatchai Kemgumnerd)
A franchise opportunity on offer at a recent edition of Smart SME Expo. (Photo: Tawatchai Kemgumnerd)

The Commerce Ministry looks set to upgrade franchise business operators, accelerate the establishment of franchise business standards to enhance their capabilities, and build up networks with both domestic and international investors to expand the market and generate economic value.

According to Auramon Supthaweethum, director-general of the Business Development Department under the Commerce Ministry, a franchise business is a perfect solution for individuals without experience in owning a business.

She said each year over 20,000 entrepreneurs express an interest in entering the franchise business, which has an average annual growth rate of 15-20%.

"This sector is thus considered to be crucial for driving the country's economic growth. Developing the franchise business to international standards is essential," she said.

According to Mrs Auramon, the Business Development Department, as a promoting and developing agency to enhance the capabilities of franchise business operators, has initiated the "Franchise Standard" programme to strengthen Thai franchise businesses by developing efficient and systematic business management capabilities, promoting global quality standards, fostering consumer and franchisee trust, and becoming a significant force to drive the country's economy forward steadily and sustainably.

Participating franchises in the programme will receive knowledge and skills development, assessments of their strengths and weaknesses by experts, in-depth consultations at their business premises, and business visits to provide best business practices.

Eligible participants in the programme include juristic persons which have operated a franchise business for no less than three years, have ownership of at least two franchise branches, have ownership of at least one self-owned branch, have registered trademarks (or are in the process of applying for them), and have the ability to participate throughout the programme.

Mrs Auramon said the department has been developing the capabilities of franchise business management over the past decade, and, currently, there are 525 franchise businesses that meet quality management standards. The department reviews and updates these standards every two years to align them with global benchmarks.

Thailand's franchise business market is currently estimated to be worth around 300 billion baht, with this year's growth expected to reach 15-20% from a year earlier.

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