There are numerous ways of starting a company in the United Arab Emirates, including creating a new corporation, acquiring an existing corporation, or partnering up with an existing business. While these are arguably the most popular ways to set up a business in Dubai, prime enhancements to Dubai's corporate climate have brought forth a new way of starting a business in this city –opening a Dubai franchise.
It's not surprising that the franchise model is rising in the region. Dubai is already famous with investors, encouraged by its strategic location and thriving franchise industry. However, opening a franchise in Dubai is by no means easy. Here, we discuss everything you should know about opening any franchise in Dubai.
What is a Dubai Franchise
The franchise business model is a business relationship in which a franchisor (an established business brand) allows the franchisee(an independent business owner) to use its business model, branding, name, and other intellectual property. In return, the franchisee makes an advance franchise fee, plus majesty costs to the franchisor.
That said, there are different forms of franchise agreements you can opt for the following:
The Process of Opening a Franchise in Dubai
Opening your franchise in Dubai can be simple and fast when you have the proper knowledge and assistance of a business formation consultant. However, before opening a franchise, you should:
Conduct Extensive Market Research
The first step to opening a franchise in Dubai is to conduct in-depth research on various franchise brands in your preferred industry. Suppose you are undecided about the market. Study the most profitable sectors and select one that aligns with your interests, knowledge, and expertise.
Upon deciding on the industry, choose a brand that you trust. Then, conduct due diligence on the brand, combing through testimonials from previous and existing franchisees. Also, review their marketing prospectus, franchising rules, franchisee responsibilities, and franchisee fees.
Decide on Your Company
At this stage, there is a set of essential points you need to keep in mind that are specific to the company setup in Dubai. First, ensure that you strictly follow the naming rules. Steer clear of any words that may be considered disrespectful. If you opt to name the company after yourself, forget the names of established corporations and avoid using acronyms.
Fulfill the Legal Requirements
While you can start a franchise both in the free zone and on the mainland, the latter is more uncontroversial and affordable. You'll need a sponsor if you opt to start your business on the mainland. On the other hand, if you opt to start your business in the free zone, you won't need a sponsor, but you'll only be able to operate in the freezone.
Apply for a Trade License
You need to have a trade license to operate a business in Dubai. Sentinel Business Centers can manage this process for you, deal with authorities, and ensure that all approvals and permits are in order.
Apply for Work Visa
You require a work Visa to operate in Dubai. The visa application process can also be taken care of by our professionals. However, you'll need to undergo all the necessary medical tests. The maximum number of visas you can sponsor will depend on your franchise company's size, setup, and earnings.
Open a Bank Account
You will also need to open a business bank account in Dubai to operate your franchise in the country.
Why You Should Open a Franchise in Dubai
The main benefit of starting a franchise business setup in Dubai is the autonomy of self-employment. The knowledge that the owner has sponsored a successful strategy and has the complete training support and inspiration of the franchisor fits this freedom.
An existing franchise domain in Dubai ensures that the franchise is a part of a company that can stand identified immediately. Additionally, it receives a portion of a brand's product or service opportunities and the quality the label has garnered over time.
A franchiser also enables the franchisee to use efficient systems and business insights. Other benefits of starting a franchise in Dubai include shared marketing, advertising, business inauguration prices, and decreased hazards.
For any individual or business looking to open a franchise in Dubai, Sentinel Business Centers offers a broad range of services, including serviced workspaces, licensing, and a team of experts ready to help you get your business up and running soon as possible. Contact us today to get started.