The U.S. Embassy in Yerevan and the U.S. Commercial Service in Moscow, in partnership with Ameria Management Advisory Services, organized a one-day business conference focused onfranchise business opportunities on September 22 in Yerevan.
The event helped strengthen the growing commercial ties between the United States and Armenia by introducing American franchise businesses that are new to the Armenian market and already successful elsewhere in the region. The goal was to highlight these opportunities to Armenian businessmen and women who are looking to open their own businesses.
According to Tigran Jrbashyan, Director of Ameria Management Advisory Services, franchise is the least risky format of business for foreign companies to enter the Armenian market and understand its peculiarities, and for local investors – to employ fully-fledged and successful business technologies.
“By its nature, franchising implies not just capital inflow. A franchiser first of all invests its technologies, production, services but not capital. It is the other party to the agreement that invests capital. This is the reason why franchising deals are considered a leading investment tool worldwide with the capital risk reduced to zero. So, on the one hand these deals are the least risky format of investments for Armenia and on the other hand they provide a possibility to import and apply technologies, brands and business-processes widely practiced in global economy” – said Tigran Jrbashyan in his answer toPanARMENIAN.Net’s question about possibilities and risks of implementing franchising projects in Armenia.
According to Mr. Jrbashyan, the economic situation in the country and presence on international markets can affect the number and scale of franchising projects. And this the issue Armenia should solve.
In this context Mr. Jrbashyan highlighted the favorable business environment for franchising deals in Armenia and how deals are being performed in all main business directions. At the same time he said that there will be projects and brands which will not work in Armenia, so franchisers will need to make in-depth market analysis to find the most suitable niche for their brands.
As to benefits of the Armenian franchising market, Mr. Jrbashyan noted that franchising works in an environment where intellectual property rights are protected.