Investopedia defines a franchise as a joint venture between franchisor and franchisee. The franchisor is the original business. It sells the right to use its name and idea. The franchisee buys this right to sell the franchisor’s goods or services under an existing business model and trademark. For e.g., with most corporate giants, the brand has many kinds of products of trade and branches under the same umbrella. Even when a popular business sells a part of it, the new owner might want to retain the brand name so that the product continues to get recognised by and remain popular among old customers who are regular buyers of the product. Franchising is based on a marketing concept which can be adopted by an organisation as a strategy for business expansion. Where implemented, a franchisor licenses its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee. Some major brands that are involved in franchising are McDonalds, KFC, Subway, etc. They have stores all across the world.
Franchise in Iceland
Iceland is home to many of these franchisees of major brands. All kinds of brands ranging from food, tech, travel, etc. have their franchise in Iceland. Since the past few decades, tourism has contributed much into the economic growth of this Nordic nation with foreigners coming to the country for travel work, etc. and sometimes even settling in the country. The number of tourist arrivals in Iceland had reached a massive 2 million in 2017. This is a little ironical since the total population of Iceland itself is a little over three hundred thousand.
With the development of tourism industry in the country, Iceland’s economy has been transformed into manufacturing and service industries. The business environment in Iceland is rapidly developing, company friendly and comply with the highest international standards.
The most promising sectors in the Icelandic economy are energy-intensive sectors, tourism, film industry, organic foods, wine and beer, computer equipment and software, and high-tech fishing equipment.
The business of franchise in Iceland is quite popular. The most successful among all brands are the franchise companies that deal with education, food and beverages, IT, fitness, medicine, and e-commerce retail. The citizens of Iceland also enjoy the products and services of many foreign brands which consists of American food franchises like KFC, Subway, Dominos, Pizza Hut, Quiznos, and Dunkin Donuts. The non-food U.S. franchise in Iceland includes brands such as Avis, Hertz, Enterprise and RE/MAX. Other U.S. companies that have franchise-like relationships in Iceland include PricewaterhouseCoopers, Deloitte, Microsoft, and KPMG. However, in the clothing and apparel sector, Icelanders are observed to prefer European franchise brands.
The business flexibility and openness of the market in Iceland also helps in conducting trade and business. Trade with foreign countries is also not an issue due to the Government of Iceland’s preference for Foreign Direct Investment. Franchise in Iceland is also a good place to invest in for people who are looking to be investors and sleeping owners of a business.
Two things are key for the growth of every business after a point: expansion and ensuring that your products reach as many people as possible and delegation of duties in a company and lower down. Opening franchisees are one of the most obvious ways to make that happen. All major brands are big today because they took the right decision to expand in time and is hence popular all across the world now. In today’s age of consumerism, franchisees are pretty much the future.
For more information, contact Swapp Agency.