Franchising in the Middle East has undergone transformative shifts over the years, from the historical dominance of global franchises to the emergence of regional brands that are now not only firmly established, but on international expansion journeys of their own. Against this dynamic backdrop, we take a deep dive into the current regional franchising landscape, unpacking everything from the essential building blocks to new industry trends.
From global to local
The franchising landscape in the Middle East has evolved beyond recognition over the decades, from the 1970s, when the market was dominated by international giants, such as McDonald’s and KFC, to the 1990s, when regional brands began opening their doors in increasing numbers. Fast forward to today and many of those Middle Eastern franchises are now also expanding beyond their own borders, extending their reach into key destinations and creating brands with global scalability in mind, while additionally tapping into emerging global trends, such as cloud kitchens.
“Today, GCC brands are exploring international markets, targeting cities like London, Paris and Madrid,” Nagi Morkos, founder and manager partner at Hodema Consulting Services noted.
The basic building blocks
While the regional franchising landscape has transformed over the years, undertaking research and meticulous preparation in the initial stages is still essential.
“Franchising begins with securing your brand name and creating a replicable business model,” Nada Alameddine, managing partner at Hodema Consulting Services, said, highlighting the importance of ensuring that a business model has a well-designed prototype. Intellectual property (IP) registration – another step that should always be prioritized – is facilitated by robust regional IP laws, which play a key part in ensuring brand names are safeguarded, even though GCC countries lack specific franchise laws.
Offering consistency across outlets is known to be a key component of successful franchise expansion, which highlights the importance of having systematized operations in place and preparing a detailed franchise manual documenting all aspects of the business, from operational procedures and recipes to branding guidelines. “Franchisors must develop franchise manuals before expanding, ensuring every aspect of their business is standardized,” Alameddine emphasized.
Today’s competitive, constantly evolving market and shifts in consumer demands have also heightened the need to put innovation and adaptability front and center of franchise development plans, according to Alameddine, who emphasized the importance of building brand equity.
Navigating the hurdles
Franchising inevitably presents challenges, which range from well-documented hurdles to others that have emerged alongside the industry’s broader development. However, for many experts, finding the right franchisee should still be top of the checklist. Carrying out a thorough vetting process is a must, according to Morkos, who compared a franchising relationship to a marriage. “You need to know your partner well,” he advised.
Other areas of a business where problems can manifest themselves include franchising models with complex operational processes, which can be more challenging to replicate. Franchisees failing to meet a brand’s standards and disagreements over royalties are other potential issues that need to be addressed sooner rather than later. “Understanding local tastes and market conditions is also critical for success,” Aleddine commented.
However, despite the challenges, there is widespread agreement among experts that the region’s dynamic F&B market presents a wealth of franchising opportunities with plenty of potential for expansion among both international and local brands. Significantly, Kuwait’s status as a regional F&B hub makes it a prime destination ripe for sustained growth.
Insights from HORECA Talks 2025 at HORECA Lebanon, co-organized by Leaders Group, Hospitality News Middle East and Hodema Consulting Services. Session moderated by Nada Alameddine, managing partner at Hodema Consulting Services, and Nagi Morkos, founder and manager partner at Hodema Consulting Services.
Franchising today: global trends, regional opportunities
Franchising in the Middle East has undergone transformative shifts over the years, from the historical dominance of global franchises to the emergence of regional brands that are now not only firmly established, but on international expansion journeys of their own. Against this dynamic backdrop, we take a deep dive into the current regional franchising landscape, unpacking everything from the essential building blocks to new industry trends.
From global to local
The franchising landscape in the Middle East has evolved beyond recognition over the decades, from the 1970s, when the market was dominated by international giants, such as McDonald’s and KFC, to the 1990s, when regional brands began opening their doors in increasing numbers. Fast forward to today and many of those Middle Eastern franchises are now also expanding beyond their own borders, extending their reach into key destinations and creating brands with global scalability in mind, while additionally tapping into emerging global trends, such as cloud kitchens.
“Today, GCC brands are exploring international markets, targeting cities like London, Paris and Madrid,” Nagi Morkos, founder and manager partner at Hodema Consulting Services noted.
The basic building blocks
While the regional franchising landscape has transformed over the years, undertaking research and meticulous preparation in the initial stages is still essential.
“Franchising begins with securing your brand name and creating a replicable business model,” Nada Alameddine, managing partner at Hodema Consulting Services, said, highlighting the importance of ensuring that a business model has a well-designed prototype. Intellectual property (IP) registration – another step that should always be prioritized – is facilitated by robust regional IP laws, which play a key part in ensuring brand names are safeguarded, even though GCC countries lack specific franchise laws.
Offering consistency across outlets is known to be a key component of successful franchise expansion, which highlights the importance of having systematized operations in place and preparing a detailed franchise manual documenting all aspects of the business, from operational procedures and recipes to branding guidelines. “Franchisors must develop franchise manuals before expanding, ensuring every aspect of their business is standardized,” Alameddine emphasized.
Today’s competitive, constantly evolving market and shifts in consumer demands have also heightened the need to put innovation and adaptability front and center of franchise development plans, according to Alameddine, who emphasized the importance of building brand equity.
Navigating the hurdles
Franchising inevitably presents challenges, which range from well-documented hurdles to others that have emerged alongside the industry’s broader development. However, for many experts, finding the right franchisee should still be top of the checklist. Carrying out a thorough vetting process is a must, according to Morkos, who compared a franchising relationship to a marriage. “You need to know your partner well,” he advised.
Other areas of a business where problems can manifest themselves include franchising models with complex operational processes, which can be more challenging to replicate. Franchisees failing to meet a brand’s standards and disagreements over royalties are other potential issues that need to be addressed sooner rather than later. “Understanding local tastes and market conditions is also critical for success,” Aleddine commented.
However, despite the challenges, there is widespread agreement among experts that the region’s dynamic F&B market presents a wealth of franchising opportunities with plenty of potential for expansion among both international and local brands. Significantly, Kuwait’s status as a regional F&B hub makes it a prime destination ripe for sustained growth.
Insights from HORECA Talks 2025 at HORECA Lebanon, co-organized by Leaders Group, Hospitality News Middle East and Hodema Consulting Services. Session moderated by Nada Alameddine, managing partner at Hodema Consulting Services, and Nagi Morkos, founder and manager partner at Hodema Consulting Services.
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Rita Ghantous
Rita Ghantous is a hospitality aficionado and a passionate writer with over 9 years’ experience in journalism and 5 years experience in the hospitality sector. Her passion for the performance arts and writing, started early. At 10 years old she was praised for her solo performance of the Beatles song “All My Love” accompanied by a guitarist, and was approached by a French talent scout during her school play. However, her love for writing was stronger. Fresh out of school, she became a freelance journalist for Noun Magazine and was awarded the Silver Award Cup for Outstanding Poetry, by The International Library of Poetry (Washington DC). She studied Business Management and earned a Masters degree from Saint Joseph University (USJ), her thesis was published in the Proche-Orient, Études en Management book. She then pursued a career in the hospitality industry but didn’t give up writing, that is why she launched the Four Points by Sheraton Le Verdun Newsletter. Her love for the industry and journalism led her to Hospitality Services - the organizers of the HORECA trade show in Lebanon, Saudi Arabia, Kuwait and Jordan, as well as Salon Du Chocolat, Beirut Cooking Festival, Whisky Live and other regional shows. She is currently the Publications Executive of Hospitality News Middle East, Taste & Flavors and Lebanon Traveler. It is with ultimate devotion for her magazines that she demonstrates her hospitality savoir-faire.