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The Franchisor’s Perspective - IP Challenges & Opportunities
History of Kengele’s Management Group
– Started in 1997 as prototype for franchising development.
– Opened first unit in July 1998– Started Central Production kitchen in 2000– African Franchise Partners established KMG franchise
system in 2001– Opened first franchise in Kisumu in 2005
IP Challenges
Copy Cat businesses“Can copy the hardware but it’s the software that counts”
Lack of Innovation confidence Understanding of IP rights Timely judicial support Compliance Reputable franchises Effective Franchise Consultants
Opportunities
Existing RestaurantsKengele’s:Lavington Green; Nairobi West; Koinange Street; Nairobi West
Kula Korner:Hurlingham
Future Franchises – Kengele’s & Kula Korner Brand Franchises
Opportunities cont..
International franchises: Malaysia vs Brazil scenario Develop Kenyan Brands Creates:
– Employment; Wealth; Skills; Sustainable Business;
Formal Environment
Who Benefits?– Franchisor – Growth– Franchisee – Sustainable profitable business– Staff – Terms and conditions of employment– Customer – Standards/ Complaint mechanism– Government – Licence/ taxation compliance; Economic Growth
Way Forward?
Pave the way – follow the system Kenya Franchise Association - MVV International Franchise environment
– MacDonald’s criteria: IP Protection Effective judicial process Trade facilitation Access to training work permits
What message would we send to the Investment world if MacDonald’s were to establish in Kenya.