lfa closer issue -3

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www.lfalebanon.com www.lfalebanon.com LFA strategic partners LFA internal newsletter LFA on the move LFA Delegation visits Prime Minister Mikati p.2 LFA participates in the WFC Meeting in Mexico City p.2 LFA and Governor Salame discuss franchising sector p.3 LFA activates cooperation with Ministry of Agriculture p.3 LFA Press Tribute Lunch p.3 New Board for LFA – under same President p.4 LFA members Darling’s Touch – The Accessories of Success p.5 LFA members’ news p.6 LFA reports Franchising a Food & Beverage brand: what are the challenges? p.7 Expanding restaurants through Franchising, a strategic way p.7 About LFA p.8 Message from the President Dear LFA Members and Friends, Our third edition of LFA Closer presents a first quarter 2012 rich in activities. LFA has been very busy on the social media. We have also participated in a number of local and international events, such as official visits to Prime Minster Najib Mikati, to the Minister of Agriculture, Hussein Hajj Hassan as well as the Governor of the Central Bank, Riad Salame. LFA held a press tribute lunch, participated in HORECA and the Business Entrepreneurship Forum. We were also active abroad, having participated in the WFC meeting held in Mexico in early March, visited Rio de Janeiro upon invitation from the Brazilian Trade and Investment Promotion Agency (APEX) and the Brazilian Franchise Association (ABF), visited the Franchise Paris Expo, were part of an official delegation to Poland, and participated in the Kuwait Forum for SMEs and the International Trade Conference in Qatar. On May 2, the General Assembly elected a new board for the next three-years. I thank LFA members for their renewed trust and I am honored to serve the Association as president for the coming term. The new Board shall continue to activate the various projects of LFA through reorganizing the specialized committees: Membership Relations, Finance and Budget, Public Relations, Foreign Relations, Economic Research and Development, Conferences and Exhibitions, and Direct Promotion. Board members shall be responsible for leading the committees, which shall be open to the participation of LFA members. Our next big event is BIFEX 2012, entitled “The Retail Industry.” It will take place on 23 & 24 May at the Phoenicia Hotel in Beirut and is being organized this year in collaboration with Iktissad Wal Aamal. The two-day Forum will tackle Branding, Mall Strategies, Franchising, and Social Media with a panel of renowned international and local speakers. As always, we look forward to your comments, suggestions, and queries and take advantage of another tenure for the achievements it will allow the Association to accomplish. April-May 2012 You can now join us on Facebook and follow us on Twitter! facebook.com / LFAlebanon twitter.com / LFAlebanon Scan with smartphone to access LFA’s page

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Our third edition of LFA Closer presents a first quarter 2012 rich in activities. LFA has been very busy on the social media. We have also participated in a number of local and international events, such as official visits to Prime Minster Najib Mikati, to the Minister of Agriculture, Hussein Hajj Hassan as well as the Governor of the Central Bank, Riad Salame.

TRANSCRIPT

Page 1: LFA Closer Issue -3

w w w . l f a l e b a n o n . c o mw w w . l f a l e b a n o n . c o m

LFA strategic partners

LFA internal newsletter

LFA on the move• LFA Delegation visits Prime Minister Mikati p.2

• LFA participates in the WFC Meeting in Mexico City p.2

• LFA and Governor Salame discuss franchising sector p.3

• LFA activates cooperation with Ministry of Agriculture p.3

• LFA Press Tribute Lunch p.3

• New Board for LFA – under same President p.4

LFA members• Darling’s Touch – The Accessories of Success p.5

• LFA members’ news p.6

LFA reports• Franchising a Food & Beverage brand: what are the challenges? p.7

• Expanding restaurants through Franchising, a strategic way p.7

About LFA p.8

Message from the President

Dear LFA Members and Friends,

Our third edition of LFA Closer presents a first quarter 2012 rich in activities. LFA has been very busy on the social media. We have also participated in a number of local and international events, such as official visits to Prime Minster Najib Mikati, to the Minister of Agriculture, Hussein Hajj Hassan as well as the Governor of the Central Bank, Riad Salame.

LFA held a press tribute lunch, participated in HORECA and the Business Entrepreneurship Forum. We were also active abroad, having participated in the WFC meeting held in Mexico in early March, visited Rio de Janeiro upon invitation from the Brazilian Trade and Investment Promotion Agency (APEX) and the Brazilian Franchise Association (ABF), visited the Franchise Paris Expo, were part of an official delegation to Poland, and participated in the Kuwait Forum for SMEs and the International Trade Conference in Qatar.

On May 2, the General Assembly elected a new board for the next three-years. I thank LFA members for their renewed trust and I am honored to serve the Association as president for the coming term. The new Board shall continue to activate the various projects of LFA through reorganizing the specialized committees: Membership Relations, Finance and Budget, Public Relations, Foreign Relations, Economic Research and Development, Conferences and Exhibitions, and Direct Promotion. Board members shall be responsible for leading the committees, which shall be open to the participation of LFA members.

Our next big event is BIFEX 2012, entitled “The Retail Industry.” It will take place on 23 & 24 May at the Phoenicia Hotel in Beirut and is being organized this year in collaboration with Iktissad Wal Aamal. The two-day Forum will tackle Branding, Mall Strategies, Franchising, and Social Media with a panel of renowned international and local speakers. As always, we look forward to your comments, suggestions, and queries and take advantage of another tenure for the achievements it will allow the Association to accomplish.

April-May 2012

You can now join us on Facebook and follow us on Twitter!

facebook.com / LFAlebanon twitter.com / LFAlebanon

Scan with smartphone to access LFA’s page

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On the move

LFA Delegation visits Prime Minister Najib Mikati

President Arbid headed an LFA delegation to visit Prime Minister Najib Mikati on 26 January, in the presence of Minister of Economy and Trade, Nicolas Nahas, Minister of Tourism, Fadi Abboud, and Minister of Agriculture, Hussein Hajj Hassan.

The delegation discussed several issues of vital importance to the franchising and business community in Lebanon, such as the Branding Lebanon Project, an LFA initiative to promote Lebanese culture and lifestyle, Intellectual Property Rights, and the importance of joining the Madrid Protocol. The delegation also stressed the importance of events promoting the franchising industry locally and internationally, and suggested the re-launching of the Lebanon Shopping Festival.

Other issues expected to help the franchising industry were also brought up. The delegation discussed possibilities to facilitate export and import procedures and the development of the franchise law in Lebanon.

The delegation requested the Prime Minister’s support in launching a national study about the franchising sector, which would demonstrate the industry’s importance and contribution to the economy, and expressed its wish that the government considers a Labor Law pertaining to university students.

Follow-up meetings were scheduled with the pertinent ministries, and LFA is expected for a second meeting with Prime Minister Mikati to present him with its conclusions.

HE Prime Minister Najib Mikati with LFA delegation

LFA participates in the WFC Meeting in Mexico City Ms. Farah Chaaban, General Manager of LFA, flew to Mexico City from 27 February to 5 March to represent LFA at the first bi-annual World Franchise Council meeting for 2012 hosted by the Mexican Franchise Association (AMF).WFC delegates discussed major issues related to franchising in their respective countries and shared their various experiences and latest initiatives and programs geared towards the development and growth of SMEs and the franchising industry. The event was an opportunity to meet with the Franchise community in Central and Latin America as the delegates attended the 35th edition of the International Franchise Expo of Mexico City (Feria Internacional de Franquicias - FIF), which took place on the first days of March gathering more than 400 exhibiting concepts among national and international brands and over 37,000 visitors.

Visual developed by our consultant M. Metni for WFC meeting in Beirut , April 2013

WFC delegates in Mexico City

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LFA and Governor Salame discuss franchising sector

A delegation of LFA members visited Governor Salame on 29 February to promote the organization’s belief in developing, promoting, and raising awareness of the franchising sector in Lebanon.

President Arbid explained LFA’s mission and activities to Governor Salame. Arbid stressed the importance of LFA in supporting entrepreneurial innovation in Lebanon as well as protecting the intellectual property rights of Lebanese brands, which could be achieved through Lebanon’s joining the Madrid Protocol.Arbid described to the Governor LFA’s role in education, training, and guidance through the Certified Franchise Executive Program, carried out in partnership with the Ecole Supérieure des Affaires (ESA) and the French Franchise Federation. He also presented BIFEX (Beirut International Franchise Forum and Exhibition), which will take place on 23 - 24 May 2012.

“Branding Lebanon” was also present on the agenda as a project that should be supported by both the public and private sectors, since it is a wide-reaching, long-term process that reveals a true beautiful image of Lebanon.Arbid also discussed with the Governor the importance of launching a macro national study about the franchising sector in Lebanon, highlighting its importance and contribution to the economy.Governor Salame welcomed LFA’s initiatives, and stressed the importance of brands in revealing the positive image of the economy. He also showed interest in LFA’s role and activities, and expressed his willingness to support any initiative that falls within his competence.

LFA activates cooperation with Ministry of AgricultureBuilding up on the meeting with President Najib Mikati, a follow up meeting was set 28 February with Minister Dr. Hussein Hajj Hassan to discuss further cooperation between the Ministry of Agriculture and LFA.President Arbid presented LFA’s mission and activities to Minister Hajj Hassan, and expressed LFA’s commitment to a fruitful relation between the Association and the Ministry. The meeting was an occasion to discuss in detail the interests of LFA member dealing with the Ministry.The delegation discussed issues such as facilitating the import of meat, the export of frozen foods, subventions on exported products, banning or imposing high custom duties on the import of certain products. Regulations 651/ and 9501/ relating to production factories and censorship procedures were also brought up. The delegation suggested the formation of a public-private committee to align the involvement of each ministry in the Food Safety chain.Minister Hajj Hassan reacted very positively to LFA’s concerns and promised to place efforts on resolving issues without ignoring the Ministry’s policy regarding the protection of national products.

LFA Press Tribute Lunch The Lebanese Franchise Association hosted tribute lunch for members of the press on 19 January at Salmontini – Achrafieh . Prominent press and media figures attended in addition to LFA Board of directors.In his address, President Charles Arbid expressed his appreciation for the continuous support of the media and their active national role and contribution to socio-economic progress. He also stressed the importance of joining efforts to move forward towards weaving a new socio-economic vision capable of meeting today’s challenges and opportunities. Arbid added that LFA and all the business community will keep working hard to keep promoting Lebanese know-how, expertise and way of life in the national, regional, and international arena.The new edition of LFA booklet was presented to the press and LFA’s active presence on the new digital and social media was also highlighted.

Press and media figures with Board members during lunch

HE Governor Salame with LFA delegation

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On the move

Newsflash • Newsflash • Newsflash • Newsflash • Newsflash • Newsflash

LFA in Rio de Janeiro Invited by the Brazilian Franchise Association (ABF) and the Brazilian Trade and Investment Promotion Agency (APEX), LFA visited Rio de Janeiro during the carnival from 17 to 20 February. Vice- President Madiha Raslan represented LFA at this event which was organized with the purpose of bringing business contacts from all partner organizations, interested in knowing a bit more of Brazil.

• LFA in Paris LFA visited the Franchise Paris Expo which took place in Paris, France from 18 to 21 March. Franchise Expo Paris is recognized as one of the world leading and most diversified franchise exhibitions.

• LFA at Horeca The Lebanese Franchise Association (LFA) was present at Horeca from 20 - 23 March 2012 at Biel, taking an opportunity to connect with its members and experts as well as new-comers to the industry.

• LFA in Warsaw Invited by the Polish Ministry of Foreign Affairs, the President of the Lebanese Franchise Association (LFA), Mr. Charles Arbid, with representatives of the Lebanese business community, visited Poland. The official visit that took place between 23 – 25 April 2012, was organized by the Polish Embassy in Beirut with the highly appreciated efforts of the Polish Ambassador in Beirut HE Mr. Tomasz Niegodzisz.

President Arbid met a delegation of the Polish Franchise Organization and discussed with them enhancing cooperation between both associations to enable Lebanese brands expand in Poland and vice versa.

• LFA in Kuwait LFA Board member, Mr. Charles Thoumy, was a guest speaker at the Gulf Small and Medium Enterprises Forum 24- 25 April 2012 held under the patronage of HH Sheikh Sabah Al Ahmad Al Jaber Al Sabah, at Chamber of Commerce and Industry.

• LFA The Business Entrepreneurship Forum Lebanese Franchise Association was present at The BUSINESS Entrepreneurship Forum that took place from 2629- April 2012 at Biel. The forum was an opportunity for LFA to meet and communicate with Lebanese Entrepreneurs and promote the success stories of its members.

• LFA in Qatar LFA Vice-President Madiha Raslan participated in the International Trade Conference ITC 2012 which took place in Doha, Qatar from 6 to 8 May.

New Board for LFA – under same PresidentLFA held its General Assembly meeting on 2 May 2012 at the Phoenicia Hotel Beirut. The assembly gave the opportunity to discuss LFA’s latest activities and achievements with its members.

The New LFA Board

The association’s administrative and financial results were presented and discussed during the meeting. The General Assembly also elected the LFA Board for the coming three years. The following members were elected to the new board: Charles Arbid, Madiha Raslan, Rashwan Miknas, Georges Najjar, Charles Thoumy, Aline Kamakian, Christine Sfeir, Michel Ferneini, Anthony Maalouf, Hussni Ajlani, Yehya Kassaa and Louay Hamadeh.The New Board set an immediate meeting and re-elected Mr. Charles Arbid as President, Mrs. Madiha Raslan as Vice-President, Mr. Rashwan Miknas as Secretary General and Mr. Georges Najjar as Treasurer.

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members

DArLiNG’S TouCh – The ACCeSSorieS oF SuCCeSS Written by Zeina Abou Zaki

Madiha Raslan’s passion for fashion started in her very early years, when she used to insist to accompany her father, a trader of accessories raw material, to work. To her great disappointment, he started by putting her to cleaning the store! “It was my first shock but my first lesson as well to know that I have to work hard to start up a business. And after cleaning, I moved to organizing and finally to selling!”Raslan learned from her father’s know-how and accompanied him on his business trips when he selected his materials. Building on her father’s experience, Raslan says: “My added value was in retail, design and branding. I went more into brand image and marketing.”

Raslan’s adventure began in Saudi Arabia, where she started supplying accessories to Harvey Nichols the Luxurious British department store newly opened in the Middle East. “I just called to the store, asked to speak to the manager and met him. That was the beginning,” she says.She started importing and distributing accessories but sales were so good that she decided to establish a company in Lebanon by the end of 2003 to start designing and producing the brand’s own accessories. And in 2005, the company started to expand outside Lebanon: Raslan started supplying Villa Moda in Kuwait & Syria, Salam studios and Harvey Nichols in Dubai, and other chains of high-end stores in the Middle East.

In 2007, Raslan started to think about her brand’s identity. To the basic fashion line of Darling’s Touch (including accessories such as necklaces, earrings, bracelets, bags, shoes, bags & belts), Raslan launched Darling’s Emotion, a line of affordably priced silver or gold plated accessories that lie midway between accessories and jewelry. She then launched Darling’s Bambino, with the motto of “like mother like daughter.” The “BWK” (Business Woman Kit) line offers a line of elegant accessories for the working woman, while Darling’s Stuff offers an eclectic collection of fun leather goods, funky corporate accessories, baby souvenirs…. To expand in a more systemic and organized manner, she thought of franchising. Raslan honed every aspect of her business to get the franchise manual right. “We even changed the brand name to Darling’s Touch to widen the scope of product segments.” She also asked Miss Lebanon 2007, Nadine Njeim, to become the face of the brand and sponsored her accessories during her participation in Miss World 2007 in China.Raslan admits that her company is very new at franchising. She developed and launched the system in 2008, and although they received many offers, they didn’t find the right partner at that time. “Franchising is like marriage – if there is no chemistry, the couple cannot continue together,” she says. “But a brand is like your baby. I am proud of its success. I created it and invested time, effort, planning, and money and I can see where I can reach with Darling’s Touch,” says Raslan. And there is no better reward than the people’s appreciation of the brand. “This is the real motivation.” Raslan remembers how pleased she was when Paris Hilton chose seven pieces from Darling’s collection during her visit to Dubai. Raslan attributes her success to a number of factors: Trendy designs, impeccable finishing, new and smart innovations, an excellent price to quality ratio, as well as good team work. “We work as one team, one family. The success of one is the success of all,” she says.

And of course, behind it all is a lot of hard work. Raslan’s day starts at 6:15 to prepare the kids to school, and then exercise for an hour. She leaves the house at 9:15 and works till 4 pm, when her day continues with the children. Wednesdays are dedicated to LFA. Despite the demand her position as LFA Vice President has on her time, Raslan likes contributing work to the public benefit. It is a mutually satisfying relationship: “I got to know a lot of people. Dealing with people became easier, and I learned how to organize my time because I have none to waste.”. Raslan feels her work at LFA is important in carrying the voice of SME’s to the Board in a dynamic and harmonized environment where the different constituents do not compete with each others. “We have no politics, no sectarianism. I think LFA is the cultural face of the Lebanon to be.” Raslan also leads BIFEX (Beirut International Franchise Exhibition), which will take place in Beirut on 23 and 24 May 2012 and about it she says “I launched the idea before joining the Board to have a platform for Lebanon brands, which is a trend setter country for the region.”

Mad

iha

Rasl

an

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Al Balad Restaurant has launched a new branch in Doha, Qatar with Al Mannai Hospitality. Founded in 1999 in the heart of Beirut, the restaurant quickly made a name for itself as a specialist in reinvented Lebanese

cuisine, served in a casual, convivial setting. Building on its early local success, Al Balad expanded across the Middle East, with branches in Saudi Arabia and Kuwait, and has ongoing plans to expand its franchise globally.

Casper & Gambini’s: After 15 years of a successful presence on the market, Casper & Gambini’s goes back to its roots. Starting off with its famous tagline “Everybody must eat

to live; some people eat to live longer!” launched in 1996. The award-winning chain decides to celebrate a re-run. The unique and authentic tagline will shine again next to the name of “Casper & Gambini’s” and across all the brand’s communication to remind people of the concept’s lifelong raison-d’être.

Castania : After rapid growth since 1985, Castania now offers a wide array of premium products – from nuts chocolates, dried fruits, coffee, to Arabic delights – in more than 38 countries. In 2008, it introduced

the Nut Boutique concept, which grew into a franchise of seven stores with a strategic partnership with Alshaya, the region’s leading retailer. Over the next five years, Castania and Alshaya are expected to grow the network to more than 80 boutiques around the world. Castania is also launching an online boutique.

Coldwell Banker celebrated its 8th Anniversary on the Lebanese market with a Gala Dinner held at Portemilio Hotel & Resort – Kaslik, where friends, customers, franchisees and team members shared in the celebrations

and applauded the 2011 Awards winners. A Royal “President with Excellence” was offered to CEO, Mr. Elie Harb.

Colortek : KASAA GROUP HOLDING (KGH) enters into a definitive share purchase agreement with Colorful Holdings, pursuant to which KGH will become a major shareholder with its subsidiary, The Little shop (TLS), a

company incorporated under the laws of France and based in Nice. KGH will extend its Colortek retail activities to Europe with the distribution of its products under the brand The Little Shop of Colors® in more than 47 retail outlets in France, Belgium, Great Britain, Italy, Malta, & Switzerland.

Crepaway has recently opened its latest outlet in CityMall. The restaurant is located along the huge glass façade giving over the highway, offering lots of sunlight. Located just below the movie theaters, it allows

movie-goers to enjoy a good bite before their show or shopping spree. Crepaway CityMall offers its classic menu, with all the brand’s classics and all-time favorites.

members

Darling’s touch : After a long agreement with Harvey Nichols, Darling’s touch has recently signed a partnership agreement with Al

Sawani group in Saudi Arabia.This partnership aims to distribute Darling’s touch collections in all Al Sawani department stores followed by “The shop in shop” concept, In Riyadh, Jeddah and Khobar.

Dent De Lait : We received some interesting news regarding Dent De Lait nursery.LFA member “Dent De Lait” has been granted the pre-school license from the Lebanese Ministry of Education.

Dent De Lait is now officially a nursery and a pre-school taking kids up to KG2 classes.

Fiesta Group is 17… and counting! In 2012, we will be expanding in the Arab and Gulf markets, where we already have footholds thanks to

a network of connections and a number of implemented projects. In collaboration with Al Malki Group, FIESTA Group will establish a central hub in Jeddah, KSA, along with an Ashkal Styrofoam Workshop to produce high quality decorations for festivals, parties, cinemas, corporate events, weddings, and advertising materials.FIESTA Group will also have two representative offices in Jeddah and Riyadh to promote the company’s products and services.

IPT earns 2011 Rebrand Global Awards: Under the patronage of LFA President Charles Arbid, LFA member Issa Petroleum Trading (IPT)

announced that it was selected as one of the most effective rebrands at the 2011 REBRAND Global Awards.President Arbid stated that this initiative was supported by LFA because “we believe in each innovative work that enhances the image of Lebanon as an incubator of innovation.” Arbid stressed the importance of Branding in developing and promoting a trademark.IPT Board Member, Dr. Tony Issa, considered the award as a sign of recognition and excellence, which IPT earned thanks to the long process of development and modernization it underwent, as well as for the more than 25 years of continuous work and effort.TAGbrand’s CEO Maya Karanouh expressed her pride at her company’s role in rebranding IPT being awarded on an international level, stressing that a successful brand is more than a name or a slogan, but the ties it creates with its customers.

At Semsom, food lovers can become chefs thanks to the Recipe Hunt campaign. The second season of this culinary challenge has just begun. Tell your story; share your recipe, and may the tastiest recipes win!Semsom is now in Lebanon, KSA and will soon be in Kuwait, Qatar, and Iraq.Log on to facebook.com/semsomlb

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reports

exPANDiNG reSTAurANTS ThrouGh FrANChiSiNG, A STrATeGiC WAYBy Raja Nasri, LFA expert – Chairman-General Manager, Turnkey Ventures sal

«As I am doing as good job, I should be able to expand and franchise my Restaurant concept.»To franchise your concept you need to start right strategically as otherwise it will be too late.The following points need to be developed simultaneously as they form a chain with strong links.

Develop through values

We have seen many concepts starting up and collapsing a while later because the ‘’spirit” was not there. A concept has this secret recipe that is injected by the owners through their presence and their follow up. Clients, investors and of course employees will benefit from that. Behind all successful concepts you have shining names who have been always present on the floor. Working in great environments is much more appealing than only a high salary.

Grow through financial support

Restaurant business is a deep ‘’cash well’’ as cash flow is not synonymous of Return on Investment. The decent return on Investment is around 2 years for a decent restaurant concept while taking into consideration all components from real estate to FF&E and operating expenses. Yet , the expansion could start before the period of 2 years, requiring cash injection from a third party or capital increase. Many successful groups have gone through Concept Valuation after a couple of years of operation. If this valuation looks promising, the search for financial support is much easier.

Get well known through Strategic Marketing

Strategic marketing should come as a package with the standards and values. We are insisting on the ‘’spirit’’ that the concept should have through the clients’ handling throughout their experience. The majority of successful concepts started through the connections of the owners who did the best marketing campaign we call ‘’word of mouth’’. Strategic marketing starts with the identification of our Primary Target Market. We cannot please all tastes. One of the most successful means to promote a concept is through invitation of the right tastes. The proper follow up will build loyalty.The right strategy in Public Relations will cost you 10% of an advertising campaign.

Experienced legal support

The legal counselor is not the lawyer, as he should be the legal partner to highlight all hidden areas in any agreement with a franchisee. You are selling a package of knowhow including recipes, FF&E, the Human Resources support, the financial support but we forget he legal side which is not taken seriously.How many times we heard about Lebanese franchisors that had to pull out because of a breach in the contract.The breach usually come from a ‘’bad’’ contract that either is not fair to one of the parties, or does not give enough guarantees to the franchisor. We have seen concept owners rushing into contracting with franchisees, without making sure their concept is in good hands.

Franchising a Food & Beverage (F&B) brand: what are the challenges?By Nagi Morkos, LFA expert - Managing Partner at hodema consulting services

For Lebanese F&B homegrown concepts owners, franchising today has become a natural sequel to developing their brands. For some, it is part of the initial strategy. But for most, it is a second stage of development, sometimes even a rescue plan when the local market slows down. However, creating a franchise does not simply mean signing a franchise agreement with a franchisee; it is a complex process that requires to bring together the franchisor and franchisee points of views, as well as an accurate preparation and full time dedication from both parties.

Lebanese home grown brands are courted today by groups from the Gulf because investors would rather capitalize on a concept that has already been successfully developed in Lebanon than create a new one; benefit from its already established reputation; and develop a product close to their customer base’s culture and taste. The attraction is also financial. Indeed, the franchise of Lebanese brands is seen by most of Lebanese businesspeople as part of a diversification strategy and an investment haven. Moreover, running a business abroad offers local F&B brands an exit strategy in case of political turmoil.

As for the Gulf, the boom in real estate has also reinforced the franchising trend for the past years, hence the several upcoming restaurants’ openings, among which Margherita pizzeria in Jeddah and Kuwait, Lord of the Wings in Kuwait, Brgr Co and Salmontini in Saudi Arabia and Al Mayass in Abu Dhabi, Qatar and even across the Atlantic in New York.

But how does one avoid falling into the traps when starting a franchise? Roles and responsibilities should be clearly defined. The franchisor provides a system and know-how, and the franchisee manages and ensures the follow-up on operating manuals. Franchisees should not expect the franchisor to operate. Problems must be detected in the early implementation stages. A good eye for human resources, carefulness in the the choice and quality of the products, and good internal organization are essential. All aspects should be looked into, from suppliers and brand management, to cooking and taste standards, as well as graphic identity, among others. Last, human resources play a major role: hiring and training are the keys to success.

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about LFA

Mission Statement LFA is a non-profit organization that develops and promotes excellence in the franchising sector in Lebanon. LFA coordinates the activity of its members in a concerted effort to promote and exemplify excellence in franchising.

Objectives • To reinforce LFA leading economic role as the

exclusive community of franchisors and franchisees in Lebanon

• To promote Lebanon abroad through Franchising • To anchor LFA standing as the largest franchising

network in the Middle East • To actively promote entrepreneurship and support

SMEs’ growth in Lebanon • To ensure the proper transfer of know-how in all

matter pertaining to franchising • To advocate for the protection of Intellectual

Property in the franchising sector • To become a role model in Business Ethics in the

franchising sector in the region • To become an exclusive general resource center for

franchisors and franchisees in Lebanon • To act as a national, regional and international

platform for LFA members

Membership (3 types)1. Full members: a. Lebanese Franchisors with a fully comprehensive

and defined concept; Must accept the Regulations set by the Statute and By-laws of LFA; Must adhere to the Code of Ethics adopted by LFA.

b. Lebanese Franchisees who are signatories to franchise agreements with foreign concepts.

2. Associate members: LFA can admit companies who, whilst they do not meet conditions of full membership, commit and work towards meeting full membership requirements within a maximum period of 2 years after admission.

3. Experts: LFA welcomes the participation of Lebanese experts who have experience in the franchising industry, mainly in the fields of franchise program development and legal services.

The Lebanese Franchise Association was established by the Official Notification Number 126/a.d. dated April 13, 2006 issued by the Minister of Interior and Municipalities.

L e b a n e s e F r a n c h i s e A s s o c i a t i o n Chamber of Commerce bldg., Floor 13, Sanayeh, Beirut , Lebanon. Tel.: +961 1 742 134, +961 71 400 533Fa x : +961 1 744 162 • i n f o@ f l a l e banon . c om www.l fa lebanon.com

Applicants to any category of membership are expected to fill the relevant application form and sign the Code of Ethics and return it to the Admission Committee which in turn will pass it to the Board of Directors for final decision.

Membership benefits: • Training programs, seminars and expos organized

by LFA or LFA partners • Networking facility through B to B meetings,

conferences and specialized organized visits • Access to LFA Member Directory and listing of

profile in the yearly LFA Booklet • Listing of profile on LFA website and visibility of

brand through website links • Access to potential franchisors or franchisees

contacting the LFA • Access to exclusive LFA database and research

resources • Timely notification of upcoming local and

worldwide franchising conferences and events• Reduced participation fee in LFA conferences,

workshops and in intellectual property registration

Activities • Launching the first program on Franchising in the

MENA Region: Certified Franchise Executives Program – Ecole Supérieure des Affaires, in partnership with the French Franchise Federation

• Participating in local and international exhibitions • Organizing seminars / workshops with partners • Organizing the periodical gathering Happy Hour • Reinforcing of the LFA resource center • Establishing local working relations with

institutional stakeholders • Reinforcing the regional and international

networks through the Mediterranean Franchise Federation (MFF), the Franchise Association for the Middle East (FAME), the French Franchise Federation (FFF) and the World Franchise Council (WFC).