Opening a franchise in Iraq

[warpus]

Yeah, I'm not so sure that a franchise is a good idea in this case. So it'd basically be a store that sells electrical equipment, right? I don't really know that there are many franchises that specialize in equipment like that, and I don't see many of the ones that exist wanting to set up shop in Iraq. Hey, maybe I'm wrong, but that's what my gut feeling is telling me.

Wouldn't it be better to just open a store that looks and sounds American, implying that there is a connection to the U.S.? That way you won't have to pay the $100,000+ or whatever franchise fee and you'll have full control over the store. Call the store "American Electric" or "Electric Americans" or whatever and off you go. Seems cheaper, but then you'll need the business know-how to actually run the business. Mind you, you'd need similar credentials with a franchise, anyway.. I think

Otherwise your first step would be to come up with a list of franchises you'd want to contact. Have you found any that operate in this niche who might not be against opening a branch in the middle east?

 

[Cutlass]

I just remembered this company. That might be a model for a store that is along the lines these guys are thinking of.

http://www.ew-ct.com/

 

[Colonel]

As someone whose been there I wouldn't advice it. Insurance alone on an American company operating there would be insane. Also you have to look at security costs and local population's receptiveness to American company.

 

[downtown]

Would a major US firm even grant a franchise license if you intended to set up shop in Iraq? If they aren't already there, I kinda doubt it.

 

[onejayhawk]

Having spent a couple of years in Iraq, I have some familiarity with the quality of goods available. Anything which would be competitive in western Europe or North America will have a large quality advantage. That said, there may be social restrictions. A lot of business is transacted through family ties.

J

 

[really]

I don't think you will be able to afford to bring in an international brand into the local market. They may not even want to be present in that market.

I imagine they would create their own brand and franchise that out around the region / country.

Another idea if you want to borrow an idea from abroad:
http://www.franchiseoptions.ie/franchises/?guid=58ee6f8a-ec27-4230-b9ff-d73332cde5e4
You set up with a warehouse and a couple of vans. You import the tools* (tools for garages, electrical repair workshops, metal forming workshops or whatever) and you start building a network.

Once you have your warehouse up and running and imports coming in smoothly you can add in franchisees - they buy the equipment from you and have their own van and routes. Your prices would have to be competitive. Having a network of vans might be an advantage if there isn't a reliable courier service delivering to every small town.

 

[NovaKart]

Ok thanks for the advice. I'm asking this on behalf of a couple Iraqis so the social restrictions is not really a problem. Onejayhawk brought up a good point observed from having been here, western goods are really sought after because local quality is poor. There are a lot of rich people in Iraqi Kurdistan who have lived abroad and are familiar with western products and the others would want to buy them too. Kurdistan is very pro American so that wouldn't be a problem.

However I do agree that most American companies wouldn't see it that way and wouldn't want to take the risk. At this point I think the guys in talking to are asking about distributing American goods and not necessarily opening a franchise per se. I don't know how that would work out.

 

[Yoda Power]

From your description it sound like they should just open up a shop selling stuff produced in the West. It then depends on the toll restrictions (if any) between Turkey and Iraq (I assume importing Western goods from Syria or Iran isn't an option).

 

[Cutlass]

Look through the page of the business I listed above. I think that that type of business might be along the lines of the type of business it may be in these guys interest to look into. But they would have to make it a stand alone business rather than a franchise. Though, you never know, if they were to contact the owners of an American business, there might be some sort of deal they could talk about making.

 

[Terxpahseyton]

As someone whose been there I wouldn't advice it. Insurance alone on an American company operating there would be insane. Also you have to look at security costs and local population's receptiveness to American company.

Though you should not forget that present Kurdistan Iraq is very different from present rest of Iraq. You can't judge Kurdistan Iraq by experiencing rest of Iraq.

 

[Hygro]

Would a major US firm even grant a franchise license if you intended to set up shop in Iraq? If they aren't already there, I kinda doubt it.

Someone's gotta do it, when a company spreads to new countries. No reason it can't be some folk you very tangentially know.

 

[Perfection]

Dude, you guys should totally sell 3D printers.

 

[Hygro]

Dude, you guys should totally sell 3D printers.

You heard it from Perfy, first.

 

[Kyriakos]

Well (possibly bad joke ahead) given you are in (Iraqi) Kurdistan, maybe a fast-food chain titled "Fried Turkey" could have an early following