Thailand’s franchise industry is expected to continue thriving with at least 10% growth forecast for this year, as people affected by the pandemic look for their own business, according to the Business Development Department.

More importantly, new generations prefer to run their own business rather than work as an employee.

Thosapone Dansuputra, director-general of the department, said the country’s franchise market was valued at 300 billion baht last year, a rise of 20% from 250 billion baht in 2019.

He expects the market to grow to at least 330 billion baht this year, even if the overall economy remains sluggish.

The spread of the pandemic has devastated domestic employment, leaving many without a job or on furlough.

Mr Thosapone said a franchise business offers a good choice for those who are interested in running their own business and those seeking extra income.

A franchise business does not require a massive amount of capital, said Mr Thosapone.

“The franchise business is a great tool to help and mitigate the economic impact on the unemployed and SMEs who have never run a business before,” he said. “People without knowledge and experience of doing business can learn from the franchise business.”

According to Mr Thosapone, it also usually takes a long time to commence a new business, while in the franchise business the franchisors or franchise owners themselves are ready to convey the necessary knowledge and experience to conduct business.

It is then possible to run a business as a career to generate income for themselves and their families and reduce the risk of failure in doing business, he said.

According to Mr Thosapone, his department is committed to proceeding with plans to raise quality standards of business management in 2021 to develop and upgrade the potential in terms of business management in franchises.

Participating franchises will receive knowledge upgrade and skill incubation, with an expert assessment team put in place to analyse the weaknesses and strengths of each business and also to provide in-depth advice to individual franchisees.

Thailand has more than 500 franchises and more than 12,000 domestic franchisees, mainly in the food and restaurant sector, but also in areas such as services, education, fitness, lifestyle and retailing.

Source: https://www.bangkokpost.com/business/2066751/franchise-sector-set-for-10-expansion