Explore Successful Franchising Models in Nigeria

It’s just unfortunate how many people think only global brands can be successful Nigeria franchises. Several local brands also have gained nationwide success. This business model is good for business owners who want to diversify their business.

What Do One Need to Have a Nigeria Franchise License

Obtaining a franchise license means the company has the right to use the trademark, and business format, and must adhere to internal regulations. In Nigeria, a specific bill to regulate the matter just passed for the second reading. This Franchising Bill sets to establish a framework to regulate and govern the practice.

To start a franchise, a business owner must register the company with related bodies such as Corporate Affairs Commissions. This step is crucial to obtaining a business permit and able to carry out business practices in Nigeria.

The next step is to register the franchise agreement with the National Office for Technology Acquisition and Promotions. This will regulate and protect the rights and obligations of both franchisees and franchisers. In the case of a global brand, they need to register the trademark in Nigeria before starting the process.

The final step is to lease the building, employ local staff, and tax registration, and obtain necessary permits. Different business areas require different permits that need regular renewal.

The Challenges They Face

Any franchise often faces challenges, whether from the local community or the global economy. Some of the most prominent challenges are the currency exchange and low consumer spending. These challenges are influencing each other in both subtle and obvious ways.

For example, when there is an issue with the global economy, it will affect the currency exchange. And the long-term effect is it lowers the nation’s total spending.

The currency rate is a crucial issue for all nations, not only Nigeria. Having a strong currency can boost local businesses to strive and work their best. It’s highly possible to open new branches or have more franchisees in a strong economy.

However, when the rate is low, it means a rising cost in many aspects, especially on imports. The issue will snowball into various problems primarily inflation. When the prices are high, fewer people will be spending their money.

And in the long run, issues like inflation also can lead to bigger issues such as security and political matters. Therefore, it’s important to keep a healthy and steady economic condition. And one way to do it is by encouraging local businesses to strive.

Starting a Nigeria franchise can be an easy process when one understands the market and comes prepared. It’s a good business model that can stay for many years to come. Numerous successful businessmen dabbled in franchises and were able to grow their wealth. As we love to hear from you, don’t forget to leave a comment on which franchise business you’re interested in and why.