WHO ARE WE?
WHO ARE WE?
As a result of business consultations and roundtables(Ministry of Economy and Industry, AEC, EDF, ERC, etc.) held in March 2013 in support of the State Program for Entrepreneurship Development in Azerbaijan, it is expedient to establish a center for the sustainable development of franchising in Azerbaijan and its promotion as an interesting and useful business model among entrepreneurs was considered.
The AFC seeks to apply the best franchising practices in the world in Azerbaijan, and also supports the representation of successful domestic brands in international markets through a franchised business model. At the same time, he supports the representation of world famous brands in Azerbaijan, establishing business relations with local entrepreneurs. The center also provides services to investors and entrepreneurs to support the development of a new business concept and franchise business model.
Franchising should ensure the sustainable development of the business development model in Azerbaijan, lay the foundations and work on its implementation, support the improvement of the relevant legal framework in Azerbaijan, and form it as an attractive model for entrepreneurs and investors.
What is franchising?
Franchising, a type of commercial relationship – a type of relationship between market participants that allows one side (the franchisor) to engage in another type of business based on its own business model for a fee (royalty). Franchising is the official permission of another person to use someone else’s trademark for a fee.
Philip Kotler notes the following features of franchising:
- the franchisor receives a certain percentage of the income of another for using his trademark;
- The franchisee pays the down payment to be part of the business system;
- The franchisor provides the franchisee with a business organization system.