Navigating the complexities of franchising is far from straightforward, from finding the right partner to getting that all-important trademark registered. We explore this key F&B segment and pinpoint the essential building blocks that will help put businesses on the path to success.
The world of franchising is a complex one, involving numerous legal, operational and strategic layers.
Firm foundations
Allowing time and patience to establish the foundational elements is essential for sustainable and successful franchise development. And the priority list for potential franchisors should include legal structure, intellectual property (IP) protection, operations manuals and financing.
“Franchising isn’t just selling an idea – it’s about replicating a working system with consistency,” said Tarek Nahas, of Sami Nahas Law Firm.
While patience is critical for ensuring thorough preparation, once a name for a brand has been chosen, quick trademark registration is imperative.
Prioritize and protect IP
“Choose a distinctive name, register it early and protect your IP assets across relevant markets,” Amal Abdallah, of Saba & Co. Intellectual Property advised. “Franchisors must also protect domain names and digital assets.”
Experts have long highlighted the importance of trademark registration in defending brand identity. However, implementing this measure is seen as particularly important in Lebanon, which has no centralized franchise law.
Researching IP registration costs abroad is another must, especially with prices varying globally and Gulf countries among the most expensive.
Win-win partnerships
Finding the right partner is another must for anyone considering entering the franchising field, necessitating patience and persistence. But securing the deal is undoubtedly worth the wait, as Najib Khatib, of Brain Bites SAL, explained. Sharing his story of acquiring the Pinkberry franchise for Lebanon, he said: “It took over a year of rejections before we finally secured the deal. The support from Pinkberry was phenomenal – everything from staff training to detailed SOPs [standard operating models].”
Successful operators, meanwhile, cite the benefits of building a successful, replicable model ahead of brand global through franchising.
“Franchising comes after the success story,” said Dani Chaccour, of Em Sherif Group. “It’s not about EBITDA [Earnings Before Interest, Taxes, Depreciation and Amortization]. It’s about building brand equity and maintaining quality control across borders.”
Aside from creating a robust model, franchisors also need to ensure that their brand offers something different.
“Me-too concepts won’t survive,” cautioned Yahya Kasaa, franchising expert and president of the Lebanese Franchise Association. “You need a strong unique selling proposition.”
Consistency is key
While differentiating a brand from the competition is essential, once that identity has been established, the next objective should be maintaining consistency across locations.
When it comes to navigating the complexities of franchising, industry players also need to be aware of the ways in which royalty models differ. And this is especially when it comes to comparing retail with F&B franchising.
Retail is about maintaining a brand,” explained Hassan Ezzeldine, whose company, Gray Mackenzie Retail Lebanon, manages Spinneys and Monoprix. “F&B is about protecting it.”
According to Kasaa, Lebanon is home to more than 870 franchise concepts, down from a pre-crisis level of 1,100. The industry currently contributes approximately 4.2 percent to GDP, with 48 percent of franchises based in the F&B segment.
The challenges that the franchising industry currently faces in Lebanon are clearly not insignificant. However, built on firm foundations and approached with strategically planned innovation and determination, the opportunities they present for global scalability are huge.
Insights from HORECA Talks 2025 at HORECA Lebanon, co-organized by Hospitality News Middle East and Hodema Consulting Services. Session moderated by Nada Alameddine, managing partner at Hodema Consulting Services.
