Franchise opportunities in Pakistan

Attractiveness of Pakistan for the development of franchise business

South Asian country, Pakistan is the fifth in population in the world. Pakistan is on The Next Eleven list of highly promising developing countries. The country is famous for exporting chemicals, textiles, leather goods, carpets/rugs and medical instruments.

The first franchise in Pakistan was established in 1993, nowadays there is a vast number of franchisees in the country. The biggest franchise opportunities are available in education, security and courier services, women and children related and retail businesses. But a hospitality sector, in particular, hotel, restaurant and fast food businesses are the most attractive and promising ones. According to the World Franchise Association, franchised food outlets in Pakistan make up $120 million annual sales.

Low labor costs; an average monthly net salary in the country is just $270, and cheap real estate are powerful advantages for international companies. They are especially required in such big cities with many citizens as Karachi (21.2 million ppl), Lahore (11.13 million), Faisalabad (7.874 million), Rawalpindi (3.199 million), Gujranwala (2.723 million).

Minimum cash needed to set up a franchise is $50,000-$150,000. The initial franchise fee in Pakistan is limited to $100,000 and the continuing fee is just five percent of the franchise monthly net sales referring to State Bank regulations.