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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 7/21/2015 NIFA 2005 1 Introduction 7/21/2015 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 NIFA 2005 2 Introduction 7/21/2015 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 NIFA 2005 3 Progress made in 2005 7/21/2015 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 NIFA 2005 4 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 7/21/2015 NIFA 2005 5 Progress Made in 2005 7/21/2015 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. NIFA 2005 6 Progress Made in 2005 7/21/2015 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 selfsustaining NIFA 2005 7 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) 7/21/2015 NIFA 2005 8 Seminar On Franchising Contd. 7/21/2015 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 NIFA 2005 9 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: 7/21/2015 NIFA 2005 10 Technical Assistant Contd. 7/21/2015 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 NIFA 2005 11 . NIFA Members at the 12th International Franchise Expo, Washington DC, USA 7/21/2015 NIFA 2005 12 Technical Assistance Contd. 7/21/2015 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 NIFA 2005 13 Development of Nigerian Concepts 7/21/2015 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 NIFA 2005 14 Development of Nigerian Concepts Contd. 7/21/2015 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 NIFA 2005 15 Development of Nigerian Concepts Contd. 7/21/2015 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 NIFA 2005 16 7/21/2015 www.nigerianfranchise.org NIFA 2005 17