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Franchise Opportunities in Dubai

Comprehensive Guide on Franchise Opportunities in Dubai UAE

UAE is a land of opportunities and a great place to start a business. Dubai, in particular, is an ideal place for entrepreneurs as it offers a favorable business environment. If you are keen on a business set up in Dubai, you can tap into the market through franchising.

Franchising is a type of business where owners let you use their business model, products, and name to start your own business at a different location. Franchise opportunities in Dubai are countless and diverse, bringing a significant change in the economy of UAE worth about 30 billion dollars.

You can choose any business model according to your interests and preferences. It can be packaging service, dry cleaning, food delivery, restaurants, retail shops, fashion centers, car service, and many others. Before choosing any business model, it is important to have a complete understanding of the process and legal framework for launching a franchise.

Steps to Open a Franchise in UAE

Getting a franchise is one of the Fastest Growing Business models in the UAE and it’s expanding rapidly. By following this step-by-step guide, you can open a franchise in UAE.

Market Analysis

 In-depth market analysis is important before launching any franchise as it will give you an idea of consumers’ preferences, competition, and market trends. Franchise opportunity in UAE were limited for foreigners, as only UAE nationals were allowed to operate business.

Now, it is possible to launch a franchise in UAE even if you do not have an Emirati sponsor. These alterations in the law are the reason for unlimited franchise opportunities.

Select the Right Franchise

The insights into the market will help you in choosing the ideal franchise with a high-profit margin. Single unit and multi-unit are two basic types available in UAE. Both have different levels of investment and growth potential.

  1. Single Unit Franchise

A single-unit franchise allows you to open a single store or office at a particular location under the franchisor’s brand.

  1. Multi-unit Franchise

As the name suggests, you are allowed to open more than one stores at multiple locations under the same brand. This type is suitable if you want to expand your business. However, it is challenging as you have to manage stores located at different locations.

Choosing the right franchise is vital as it determines the profitability and growth of your business. So, choose wisely. You should evaluate franchises based on profitability, associated risks, demand, support, and reputation.

It is recommended to attend expos and join different platforms that provide authentic information related to franchises.

Business Plan

A well-crafted business plan is crucial for launching a franchise in the UAE. It should include your goals, budget, purpose, nature of the franchise, services, and products you are going to offer. Also, describe your marketing strategy, operational plan, and financial plan.

In business, planning is everything as it clarifies everything along with your goals and what steps are needed to achieve them.

Secure Financing

It might be possible that the franchise you choose requires an upfront fee and working capital investment. Make a rough estimate to determine the investment needed. UAE banks offer different loans and you can apply for them as well.  

Choose Suitable Location

The location has a significant role in business operations and determines the potential growth of the business. In UAE, it can be on the mainland or in the free zone. Each location has its own set of benefits that make it hard to choose.

Freezone

Launching a franchise in Freezone of Dubi offers multiple benefits to investors. These include

  • Complete ownership of the business eliminating the need for an Emirati sponsor for business activities.
  • You do not have to pay any type of tax as Freezone in Dubai is tax-free
  • It is easy to register and launch a franchise for free as compared to the mainland because of quick business set-up opportunities
  • Moreover, you can get special incentives, be allowed to choose any currency, and easily take out the profit. 

Mainland

  • If you choose the mainland for launching a franchise, it will provide you the opportunity to trade with a local market in the UAE.
  • Also, there are no restrictions on the Mainland and you are allowed to operate in any industry of your interest.
  • The interaction with the local market of the UAE can be helpful for many franchises that are consumer-based.
  • The only limitation of the mainland is that you have to hire a local service agent who holds 51% of your business. Also, the rules and requirements are stringent, unlike free zones.

Apply For Registration and Trading License

The next step is registration of your business with relevant authorities so you can operate business activities legally in UAE. To obtain a franchise license in UAE or a trading license you have to go through several steps that include

  • Choose a business name that is unique and does not contain any offensive words. It is an important step as the trade name gives the idea of the nature of your business.
  • Decide the legal form for your business it can be a Limited Liability Company (LLC), sole proprietorship, or any other.
  • Submit your application along with the required documents for a trading license to the Department of Economic Development (DED) in the case of the mainland. If your business is in freezone then submit it to the concerned department.

Apply For Visa

A visa is necessary for you and the staff members you hired for your supermarket franchise in UAE. It can be any visa, but you will be eligible for an investor visa that provides residency for 3 years.

For staff, you have to apply for an employment visa. the employment visa ensures that the employee must work under the sponsoring entity. You can submit a visa application to GDRFA for the mainland and to the immigration center for freezone.

You can sponsor your family members but the number of family members depends on the size and growth potential of the franchise.  

Franchise Agreement Preparation

The franchisor and franchisee sign an agreement known as a franchise agreement, that contains all the essential information related to business. It includes

  • Franchise fee
  • Profit share
  • Training and quality assurance
  • Period for agreement
  • Duties and expectations

Bank Account Opening

It is not possible to do business in Dubai without a Bank Account. It is mandatory to have a corporate bank account so you can manage funds and keep a record of it. A lot of bank options are available that you can choose for yourself.

Choose a bank that suits your business model and offers services to its users. For account opening, you need to submit a business plan, CV, passport copy, Emirate ID, residence proof, and other documents related to the company.  

Find Location

A suitable location for your franchise strongly contributes to making your business profitable as it is linked with the people’s reach and visits. Opening a franchise near competitors can be good or bad.

With the change of location, the needs change. So, it is good to decide your location according to the service you provide and the demands of locals. 

Marketing of Business

After launching your franchise, make a powerful and promising strategy for marketing so you can reach to target audience. You can contact a digital marketing agency to increase your reach through online platforms.

Cost Of Opening Franchise in UAE

In UAE, launching a franchise is a multi-step process and cost depends on multiple factors. It includes

  • Business Activity
  • Location (Freezone or Mainland)
  • Emirate

The cost varies with the change in Business activities and the emirate in which you are located. Some business activities require higher investment and certain emirates are more business-friendly than others.

The same is true in the case of the Freezone and mainland. In the mainland the cost ranges from AED 15,000 to AED 50,000 annually. If you are located in a free zone then the cost starts from AED 10,000 and can reach AED 50,000 depending on the number of business activities.

However, Free Zone provides franchise licenses in the UAE along with office space which makes it a preferred choice.

Benefits Of Opening Franchise In UAE

The UAE is ideal for franchisors and franchisees as it offers several benefits that attract investors from all over the world. Both locals and foreign investors can get benefit from the diverse market and strong economy of the UAE. Here are some more reasons to launch a supermarket franchise in UAE.

Cost Effective

Franchise businesses for sale in UAE are cost-effective for entrepreneurs as franchises are already well-known brands. You can save a lot of money that is required for marketing, launching, logo design, and advertising of the business.

High Success Rate

Franchise business for sale in UAE offers proven models and it significantly contributes to a high success rate. The reason is that it eliminates the need to develop strategies for brand awareness and customer trust.

Your franchise may be new, but the brand is proven and trusted by customers. You can thrive in the business market with minimal effort.

Tax Exemption

The most attractive benefit for investors is tax exemption in the UAE. It directly contributes to high profitability, and you can invest that amount in expanding your business instead of paying as tax.

Secure Environment

In business, not only security but also peace of mind is needed. Dubai’s low crime rate makes it a suitable choice for launching a franchise. A lot of entrepreneurs are attracted because of UAE’s reputation and security system. 

Lower Risk of Failure

Running a business in UAE independently is not a walk in the park as it requires determination, a sharp mind, and effective strategies to stay profitable. Otherwise, it may fail badly. However, in the case of franchises, risks of failure are lower because models are proven and the franchisor is always there to support you.

Semi-monopoly

Another benefit of launching a franchise in the UAE is that you get exclusive rights to operate in a specific area. It means that there will be no more franchises of the same brand in your area and there will be no competition to attract customers who trust the brands. Keep in mind that you still face competition from other brands located nearby.

Conclusion

At the end of this article, we hope you have a clear understanding of the franchise opportunities in Dubai and how to launch a franchise in the UAE. Starting a franchise is an ideal business for entrepreneurs because it requires less experience, strategy, effort, and time compared to starting an independent business.

The process is simple but it is mandatory to have a franchise license in UAE. Be sure to choose an experienced franchisor with a good record of success and support for franchisees.   

It is recommended to conduct research and evaluate different brands before launching a franchise. If you are finding it hard and not sure about your choices, don’t worry! Al Riyady is always here to assist you and provide solutions for your business problems.

Feel free to contact us to get services for launching your business in the UAE. If you have launched your business already and looking for a digital marketing agency that will upgrade your marketing game, AlRiyady is here to give you the wings you need!

FAQs

More franchise opportunities in the UAE are available due to its investor-friendly environment, growing economy, strategic location, and cutting-edge technology. Another reason is the multicultural population of UAE, which demands a variety of international brands due to diverse lifestyle that leads to more franchise options.

Investing in launching a franchise is a smart move as brands are already proven by the consumers and franchisor support is available. The chances of success are higher than the risk of failure so select the right franchise of your interest and thrive in the UAE business market.

The population of UAE is multicultural, and so is the demand. There is a wide range of franchises that have high-profit margins and strong demand. The most popular ones are

  • Clinics
  • Retail sectors
  • Fast food chains
  • IT services
  • Education sector
  • Beauty and fitness franchises

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