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150 Turkish firms opening branches abroad

There are 2,500 business chains with 60,000 branches in Turkey and there are over 150 Turkish brands that have started to open branches abroad, a leading franchising sector representative has stated.

150 Turkish firms opening branches abroad
30.08.2017
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There are 2,500 business chains with 60,000 branches in Turkey and there are over 150 Turkish brands that have started to open branches abroad, a leading franchising sector representative has stated.

The franchising sector is recognized as one of the most popular entrepreneurship practices and grew to a size of $43 billion last year, National Franchising Association President Mustafa Aydın told state-run Anadolu Agency, adding that it is expected to become $50 billion by the end of 2017.

Aydın noted that brands reach national and international standards through the franchising system.

“The total number of chain businesses in Turkey is 2,500. These businesses have approximately 60,000 branches in total. The ratio of foreign businesses in the sector is 29 percent. Meanwhile, there are more than 150 Turkish brands starting to establish branches abroad,” he said.

“The franchising system provides the investor with the chance to create equality of opportunity in his or her region by utilizing years of knowledge on the institutionalization of the brand owner and gives people in the region the opportunity to be employed, using the investor’s capital. By providing equality of opportunity and job opportunities, franchising helps the economy develop and get closer to the level of full employment. In addition, companies get the chance to establish their name not only in their own countries but also abroad, which provides an inflow of foreign currency to their country,” Aydın added.

He particularly emphasized that the franchising system generates a solution to the problem of unemployment, indicating that it provided job opportunities to a broad spectrum of workers, from blue-collar workers to top-level managers.

The food sector seems to be most advantageous in the franchising sector, but Aydın stressed that there are national brands in every sector capable of competing with global leaders and succeeding in markets across the world with the franchising system.

Aydın also said that financial turmoil in global markets and economic crises had not substantially affected the Turkish franchising sector, and that in fact there has been inversely proportional growth during times of crisis.

In addition, Aydın said 2016 was a particularly good year for brands and the franchising sector, while 2017 also began favorably. However, necessary measures had to be taken due to the possibility that stagnation in investments could lead to regression in the sector. (HÜRRİYETDAILYNEWS)

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