Franchising Opportunities in Iceland

Investopedia defines a franchise as a joint venture between franchisor and franchisee. The franchisor is the original company. It sells the right to use its name and idea. The franchisee acquires this right to sell the franchisor’s goods or services under an existing business model and brand. In most corporate giants, for example, the brand has many types of retail products and outlets under the same umbrella. Even if a popular business sells part of it, the new owner may want to retain the brand name so that the product continues to be recognised and popular by the old customers who regularly buy the product.

Franchising is based on a marketing concept that can be used by a company as a strategy to expand its business. When implemented, a franchisor licenses its know-how, processes, intellectual property, the use of its business model, its brand and the rights to sell its branded products and services to a franchisee. Some major brands involved in franchising are McDonalds, KFC, Subway, etc. They have branches all over the world.

The Popularity of Franchise Business in Iceland

Iceland is home to many of these big brand franchisees. All kinds of brands from food, technology, travel etc. have their franchise in Iceland. In recent decades, tourism has contributed a lot to the economic growth of this Nordic nation, as many foreigners come to work in the country and sometimes even settle in the country. The number of tourists arriving in Iceland was over 2 million in 2017. This is somewhat ironic as the total population of Iceland itself is just over three hundred thousand.

With the development of the tourism industry in the country, the Icelandic economy has transformed into a manufacturing and service industry. The business environment in Iceland is fast developing, business friendly and meets 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 franchise business is very popular in Iceland. The most successful among all brands are the franchises dealing with education, food and beverage, IT, fitness, medical and e-commerce retail. Icelandic citizens also enjoy the products and services of many foreign brands, including American food franchises such as KFC, Subway, Dominos, Pizza Hut, Quiznos and Dunkin Donuts. Non-food franchises from the US in Iceland include brands such as Avis, Hertz, Enterprise and RE/MAX. Other US companies that have franchise-like relationships in Iceland include PricewaterhouseCoopers, Deloitte, Microsoft and KPMG. In the clothing industry, however, Icelanders favour European franchise brands.

The commercial flexibility and openness of the Icelandic market are also helpful in conducting trade and business. Trading with foreign countries is not a problem either, as the Icelandic government favors foreign direct investment. Franchise in Iceland is also a good investment destination for people who want to be investors and sleeping owners of a business.

Two things are critical to the growth of any business beyond a certain point: expansion and making sure your products reach as many people as possible, and delegating tasks up and down the organisation. Opening franchises is one of the most obvious ways to achieve this. All the big brands today are big because they made the right decision to expand in time, and as a result are now popular all over the world. In today’s age of consumerism, franchisees are like the future.

For more information, contact Swapp Agency .