GuideMeSingapore

To promote Singapore as the franchise hub of Asia the Franchising & Licensing Association of Singapore (FLA) is taking several initiatives. One such recent measure is the setting up of a new assistance programme, called “Franchise Assist”, to provide help for local franchise companies in market development and manpower training. In conjunction with the annual FLA Award 2010 it also announced the launch of a new award – “Franchise Star Achiever” to encourage franchise companies to enhance their productivity and performance by creating a strong brand image, network of outlets and regional expansion programs. The association has called for nominations for the FLA Award 2010, which is open to all local and international franchisers and franchisees that are operating in Singapore. Closing date for nominations is August 16.

Franchising and Licensing Association formerly known as Singapore International Franchise Association (SIFA), was established in 1993, with the mission to develop Singapore s franchising industry and to promote the country on the international platform as a franchise hub.

In Singapore the franchise industry has been growing very strongly with some of them expanding their brand presence regionally. Between 2003 and 2009 the industry has registered a 30% growth. The FLA estimates that sales turnover of Singapore based franchises is 18% of the total domestic retail sales. Apart from the home grown brands there are several foreign brands which are run through franchise system. The trade promotion bodies of the state such as International Enterprises Singapore, FLA etc render a strong support system for companies to expand beyond Singapore markets.

Presently, franchise networks are most common in sectors such as education and training, restaurants and fast food, Beauty and wellness services etc. In Singapore, the relationship between franchiser and franchisee is governed by general contract law and there is no exclusive law governing the industry therefore, the parties can freely negotiate the terms of business. Singapore has sound system of commercial law therefore disputes, if any, can be smoothly settled.

Singapore, while nurturing the local brands through quasi government organizations and government bodies, is also equally receptive towards foreign brands. Unlike other countries, Singapore allows foreign franchisers to develop their franchise without their physical presence in the country. Of around 500 franchise concepts, there are currently about 170 foreign franchises present in Singapore.

Many western and regional brands seek to set up franchised units in Singapore as a gateway to both the developed markets of the west and burgeoning Asian economies. Many international brand owners choose this place because the Singapore identity counts in their expansion plans. Setting up a Singapore company makes more sense for regionally poised businesses because of the systemic support rendered by the government and affiliated agencies. Moreover Singapore s sound legal system and strong IP regime emanates trust and credibility which is critical for such business arrangements. A Singapore company can more readily gain the confidence of the potential franchisor or franchisee.

To learn more about how to start a Singapore company, see Singapore company registration guide.