Franchising in Cameroon

Franchising in Cameroon

EXECUTIVE SUMMARY

Being at the origin of the expansion of many brands such as 21 century or McDonalds, the franchise is considered as one of the most successful marketing strategies. Well-known brands are represented worldwide with this system of commercialisation where a long-term relation between the franchisor and the franchisee is needed.

The goal of this research paper is to evaluate how this concept, which showed its ability, can be promoted in Cameroon to stimulate the entrepreneurship. Some enterprises in Cameroon are familiar with the franchise distribution and benefit from it but few are aware of the potential of working in that network.

This study presents a holistic overview of details, analysis, approaches and pertinent considerations about creating a franchise in Cameroon. It also outlines what a businessperson should know while contracting a franchise and the role that government also has to play to adapt this approach successfully.

Chapter one gives a comprehensive overview of Cameroon and its business environment.

Chapter two provides broad literature review on franchising and how it is applied in Cameroon.

Chapter three states the advantages and disadvantages of franchising in Cameroon.

Chapter four is a methodology of the study, stating how data was collected and analyzed, its methods, instruments, and anticipated problems.

Chapter five is the conclusion about the study, a report summary indicating if the research was of relevance, if it tied in with the hypothesis and the objectives of the study. It also presents the scope and breadth of specific challenges and opportunities a new business school would have to comply with. Some recommendations on how this business school can adapt in the Cameroonian society are proposed.

These recommendations are:

1. Educate people to the concept as the private sector is the sector with a huge impact on economy, the government should encourage entrepreneurs to buy franchises,

2. Create and/or support associations working to set up a franchise network in order to reduce or avoid unsuccessful enterprises due to lack of information and so forth.

CHAPTER ONE

I. (i) An Introduction to Cameroon

Cameroon is a country of Central Africa situated below the Golf of Guinea, between the 2nd and the 13th degrees of the North latitude and 9th and 16th degrees of the East longitude. The country stretches on a surface area of 475 650 km2 slightly larger than California. It has the form of a triangle that stretches from the south right up to lake Tchad, close to 1 200 km whereas the base spreads from West to East for about 800 km. It has at the Southwest, a maritime border of 420 Km along the Atlantic Ocean. It is bordered in the West by Nigeria, in the South by Congo, Gabon and Equatorial Guinea, in the East by Central African Republic, and in the Northeast by Tchad. Finally, at the summit of the triangle, it is found Lake Tchad.

It is member state of the Bank of Central African States, Central African Customs and Monetary Union (CEMAC), and African Intellectual Property Organization (OAPI).

Cameroon is a country with diverse population that actually make it very colourful. In 2010, the Population of Cameroon hits 19.4 million.

Cameroonians follow many religions. About 40% are at least nominally Christian, of whom approximately half are Roman Catholics and half are affiliated with Protestant denominations. As many as 20% are at least nominally Muslim and about 40% practice traditional indigenous religions or no religion at all. Many of the indigenous religions are local religions practiced primarily in rural areas.

People use several languages in Cameroon but French and English are official ones. The literacy rate in the country is 73.6% .

These people have a rich culture, which is rooted in their tradition. Above all the Cameroonians are hospitable and friendly.

I. (ii) Cameroon's Business Environment

The Cameroonian Economic outlook has been on an upward trend since 2007.

Despite the decline in the Oil production industry and the recent financial crisis, the country has continued to show GDP growth rates of 3.6% and 4.8% in 2007 and 2008 respectively and a forecast of 4.6% in 2009. The country benefits from increasing trade opportunities between Africa and Asia and an economy rich in Primary