Franchise is a business model, in which a firm which already has a successful product or service (also known as franchisor) allows other businesses (so called franchisees) to operate under the franchisor's trade name, in exchange for a fee. Franchisees have to follow franchisors’ guidance and standard.
Franchises established by Vietnamese people are developing fast. Urban Station Coffee is an example. Established in 2011 by two young students, Urban Station currently has 40 franchises nationwide.
"Everything, from managing to operating stores, to hiring new staff, or even firing employees, is under the control of Urban Station. Our franchisees focus more on the financing aspect", said Dinh Nhat Nam, Co-founder of Urban Station Coffee.
Urban Station Ly Quoc Su is the 36th store opened in Vietnam. According to the franchise, the store owes its success to its central location in the capital city.
In contrast to Urban Station’s modern and vibrant color is the earthy style of Koh Samui, a Thai dessert restaurant. The brand was established by 4 Vietnamese in 2014 and has expanded to 7 stores after a year.
Vietnam is a potential market for franchising businesses both international and domestic due to the country’s young population and soaring domestic consumption. If developed on the right track, the long-term potential for ambitious Vietnamese entrepreneurs is significant.
