Profitable Business Franchise And Its Potential Details You Can Try In Nigeria
Many Nigerians should start eyeing franchising as a real business to start gaining massive profits. Having a franchise Nigeria will not only establish you as a solid businessman but also will solidify your finances and network. The Nigerian government itself has been utilizing franchises to grow in the country. Therefore, there is no reason for you to miss out on this industry niche.
The Prospect of Franchise Nigeria
Nigerian landscape is wealthy with exponential population growth, which later can also be translated as more buying power and growth of the economy. And even though the Nigerian government incurs the Value-Added Tax of 7.5% flat to all goods and services, it doesn’t stop the franchisors to enter the Nigerian market.
Currently, food and beverages dominate the franchise business with Domino and Kentucky Fried Chicken (KFC) as the market leader. The fast food business itself takes up 45% of the whole franchising landscape in Nigeria. However, this business environment should act as the catalyst and encourage more people to open up new niches with significant opportunities such as in healthcare, beauty, educational service, and many more.
How the Nigerian Government Sees Franchise Business
The Nigerian government passed the bill for franchising law to second reading in March 2022. It may be another good year before they passed and ratify the bill, but since the bill establishes the framework, businessmen can see this as a green light from the government.
The National Office for Technology Acquisition and Promotion or NOTAP is there is the regulating body for the upcoming franchises. NOTAP Section 4 clearly stated that a franchise must cover the use of trademarks, patented inventions, supply of technical expertise in engine and human resources, as well as establishing the operating and managerial staff.
This support from the Nigerian government is also in form of the credit access for businessmen who are looking to start a franchise. They also provide seamless trademark processing to improve the speed and productivity for the franchisee to grow their business.
What are the Challenges
The rising cost to start a franchise is always the primary issue among Nigerian businessmen. They need to have a large capital to start the business. And being constantly wary of the exchange rate also can add to the stress and challenges.
Another issue is the possibility of a decline in the target market’s spending power. A franchise relies on its brand which comes with a specific target market. And when their primary customers can no longer purchase their products, the franchisee will be seeing losses instead of profits.
Franchise Nigeria has a bright future with more multinational companies investing and growing in the country. Multiple sectors, predominantly food and beverage services, are brimming with opportunities. The Nigerian government works to provide the best support for Nigerian businessmen who are seen to be a franchisee through easy credit and other help and protection through multiple government offices.
