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Coffee Bean roasts Israeli Master Franchisee

August 7, 2010 By Pooja Kulkarni Leave a Comment

Says all master franchisee branches must close

by 8th August 2010

International Food Franchise Coffee Bean & Tea Leaf chain has given its Israeli master franchisee, City Food until Sunday, 8th August 2010 to close down all 11 branches in Israel, because of alleged violations of their franchising agreement. Also, for months, master Franchisee City Pass hasn’t been making its franchise payments and now owes hundreds of thousands of dollars, a Coffee Bean representative said.
If the shops are not closed by 8th August 2010, steps will be taken, the local legal representative of the chain said. For months the master franchisee City Food hasn’t reported on revenues at the branches, in violation of their agreement, Coffee Bean charges. It hasn’t reported on opening new branches or closing existing ones, leaving the home office in the dark as to the state of affairs at Coffee Bean in Israel, it says, let alone knowing if it’s even profitable.

Coffee Bean and Tea Leaf is present in several parts of Middle East, India and Singapore as well. The international coffee franchise is concerned about damage to its good name, explains Eyal Flom, one of the local legal representatives of the chain. The local outfit has been notified that from August 8, the franchise agreement is terminated and therefore, they have to close down all stores from that day.

Coffee Bean is unhappy about City Food’s moves to unite local Coffee Bean outlets with other brands, which contravenes their policies. In some places City Food opened sushi bars inside Coffee Bean outlets, and at the main outlet in Netanya (in the Northern Centre District of Israel), the Coffee Bean was merged with a Sbarro outlet, it says.

Among the many alleged violations, City Food opened branches without obtaining prior permission and tried to sell half its master franchise to the Abulafia family, also without the global company’s blessing, claims the latter.

The master franchisee, City Food did not respond for this report.

About Coffee Bean and Tea Leaf:
Since 1963, The Coffee Bean & Tea Leaf is one of the oldest and largest privately held coffee & tea retailer in the United States. Over the past five years, The Coffee Bean & Tea Leaf® has grown from 217 stores to over 750 at the end of 2008, serving more than 100 million beverages each year, including over 20,000 Ice Blended® drinks each day.

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Saudi franchising market reaches US$1 billion, to grow by up to 12% annually

July 29, 2010 By Pooja Kulkarni Leave a Comment

27th July 2010: Riyadh, SAUDI ARABIA The Kingdom of Saudi Arabia’s (KSA) franchising market has been estimated to be worth SAR 3.75 billion (US$ 1 billion) and is expected to grow by up to 12% annually according to recent industry figures. These figures are the sales by businesses of regional and international master franchises in Saudi Arabia (More statistics on Franchising in Middle East)

The robust growth forecast underlines the increasing economic contributions of the franchising industry in Saudi Arabia and its strong potential to become the most popular non-oil business sector in the region.

The Saudi International Franchise Exhibition and Conference 2010 (IFEC 2010), the third international exhibition and conference for the franchise industry in Saudi Arabia, seeks to complement the surge in franchising activity by providing a platform for international franchisors, entrepreneurs, agents, business owners and investors from all over the Middle East to discuss the most promising franchising opportunities and address emerging industry challenges. IFEC 2010 will be held from October 26 to 28, 2010 at the Riyadh International Convention & Exhibition Centre.

Diya Abdo, Project Manager of IECF in Riyadh Exhibitions Company, said: “Franchising in the Kingdom of Saudi Arabia is fast becoming one of the most popular non-oil businesses in the region. The growing number of franchising businesses has been influenced by the government’s proactive efforts to encourage foreign direct investments and promote the growth of SMEs in the country.

The government has offered value-added business incentives and has developed world-class infrastructure for basic resources such as water, oil, communication and electricity, which has helped greatly reduce the operational costs for the franchisees. Moreover, up to 60 per cent of the Saudi population are under the age of 25, making them a prime target market for various international franchise businesses and subsequently creating a wide range of franchising opportunities in the country.” Several international franchisors are expected from Middle East, Singapore, India and Thailand.

This is the 3rd edition of the Franchising Expo in Riyadh, Saudi Arabia, considering that there are a lot of entrepreneurs looking for new business opportunities. This is one of the three mojor franchise exhibitions organised in the Middle East and North Africa Region.

IFEC 2010 will include seminars targeting foreign franchisors that have enjoyed success and are looking to expand their franchising activities in Saudi Arabia. The seminars will cover legal and financial issues when developing businesses in Saudi Arabia, while cross-cultural issues will also be discussed.


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United Spirits explores Global Franchising Plans

April 27, 2010 By Pooja Kulkarni Leave a Comment

Franchising is definitely flourishing with a lot more established players are now  exploring this idea. In India, previously, it was only the small cash strapped retailers  that were considering the option, now even the larger ones like Westside are doing  that. Some other Indian companies are exploring this idea as well, this time it is United Spirits, the second largest spirits company in the world and the largest in India.

Beverage companies (Alcohol, Non Alcoholic and Water) have always considered franchising for their expansion plans, especially bottling plants. Some popular examples are Coke, Pepsi and even the once independent Cadbury Schweppes explored this option. These are large investment business  opportunities, the investment required is typically upwards of Rs. 5 to 20 Crores (USD 1 Million to 5 Million).

This is definitely a much better idea, than establishing manufacturing plans globally. Let us understand the Coke and Pepsi Beverage Plants. Coke and Pepsi only produce syrup concentrate which is then sold to various bottlers throughout the world who hold a Coca-Cola franchise rights with their respective territories. Coca-Cola and Pepsi bottling franchises, who hold contracts with the company, produce finished product in cans and bottles from the concentrate. Their bottling partners are local companies so they are rooted in their communities, thinking and acting locally. They are employers, purchasers of local goods and services, good neighbors, and, of course, producers of the world’s most popular beverages.

On a similar note, other Indian companies that have similar plans in the beverage franchise business is Eureka Forbes, Eureka Forbes is looking for smart entrepreneurs that are interested in the bottled water retailing business. The Eureka Forbes Franchisee would establish a retail distribution network, apartfrom manufacturing bottled water. Those retail stores would cater to the Home and Office Delivery customers as well.

United Spirits is looking to franchise not just in Middle East, but also in Singapore and other major markets. It will aim at connecting with entrepreneurs looking at business opportunities in the spirits / beverages segment. We believe United Spirits if they aggressively franchise their bottling franchises worldwide, they could soon take the #1 position Worldwide in the spirit’s business. We wish them luck. Cheers to Indian Franchising.

About the Author

Dhawal Shah is an entrepreneur and franchise expert with many years of experience. He publishes FranchiseExpo.in, You can FranchiseExpo.in has become the fastest growing franchises for sale search engine, helping buyers and sellers of franchise opportunities. FranchiseExpo.in has many resources to help you on your journey to start your own business, sell your existing business or open a franchise. FranchiseExpo.in has hundreds of franchises for sale in India, Bangladesh, Nepal, Bhutan and Sri Lanka.

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Tags: United Breweries, Vijay Mallya, Vijay Rekhi, Daigeo, Beverage Franchise, Coke, Pepsi, Manufacturing Franchise, Business Opportunity, Spirits Franchise

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