The younger generation is joining the ranks of entrepreneurs in the franchising business, as evidenced by the visitors and participants of the Fifth Taipei International Chain and Franchise Exhibition, which kicked off yesterday with a record 120 exhibitors showcasing 380 booths.
"We were surprised to see so many visitors on the first day of the exhibition ? it looks like people have had enough of the soft economic days and dog-eat-dog job market last year," Lee Pei-fen (李培芬), secretary general of Association of China and Franchise Promotion (連鎖加盟促進協會), said yesterday.
In previous shows, the middle-aged group constituted the largest portion of visitors who have accumulated a small amount of capital from work. But Lee said she has observed a large number of young investors expressing interest in the franchise business lately.
Besides those who had difficulty finding jobs last year and are keen to open their own businesses now, another segment of young investors are those who have successful experience in running virtual stores, and seek to further their enterprises with brick-and-mortar businesses, Lee said.
Among the 120 brandnames participating in the exhibition, the restaurant business accounted for 60.4 percent, and attracted the most attention from perspective investors in previous years, Lee said.
"Low requirements for skills and high return rates are the key," Lee said. "Unlike some businesses that require skills, such as barbershops and language-learning institutes, restaurant investors often only need to follow the instructions of their central headquarters."
The star of this year's show was the NT$50 single-slice pizza shops that have been mushrooming in the streets in the past months. One pizza-by-the-slice retailer, Pizza Hot (熱到家), said that it received an overwhelming number of inquiries from visitors yesterday.
"I believe it is our successful business strategy that is attracting the attention of investors," said Viven Hung (洪麗娟), deputy manager of planning department at Pizza Hot, which opened in March last year and has a total 81 outlets nationwide and overseas. The company seeks to open another 20 to 70 franchises this year, Hung said.
"I think we will easily garner our targeted number of new franchises this year, judging from the `hot' responses," Hung said.
As disputes between company headquarters and franchisees occur frequently, Lee suggested investors carefully choose their companies and inspect terms and conditions before signing.
She also warned franchisees to comply with obligations stipulated in the contract, as many disputes have resulted from franchised stores that failed to uphold their franchise requirements.
One visitor to the exhibition showed a strong ambition about setting up her own business.
"I think this is a good time to open my own business, as the economy is reviving," said Cindy Chen (陳淑菁), a visitor to the exhibition who lost her job a few months ago in a company downsizing. "I can have my own store in a short time by paying small royalties without having to develop my own products or brand name ? this is a good opportunity."
The exhibition will continue daily until next Monday at Taipei World Trade Center Exhibition Hall I from 10am to 6pm. Admission is NT$200 for adults and NT$100 for students.
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