Bursa Kebap House (Turkey) Signs Master Franchise Agreement for Iran
01 Mar 2019 - One of Turkey's leading food chains, Bursa Kebap House, which was taken over with three branches in 2010, has focused on foreign targets this year after growing through the management strategies of two entrepreneurial brothers as well as a franchising system and has reached 98 branches in 37 provinces both at home and abroad.
The next overseas branch of the brand, which previously opened branches in Germany, will be located in Iran. Bursa Kebap House has signed a master franchise agreement with Sweet World Trade Development PVT, Iran's well-established trading company with active operations in Turkey.
With this master franchise agreement, it plans to open 30 branches in Iran within the first five years. The company, which has the right to sub-franchise with its own investments, will also carry out sales, marketing and distribution of Bursa Kebap House products.
The investor intends to grow its business in Iran by opening the first five branches in 2019 with an investment of $2.5 million.
The Iranian company, which will employ at least two Turkish citizens in each branch under the agreement, will pay $30,000 and a 4 percent royalty fee to Bursa Kebap House for franchising name rights.
Determined to make its brand global, Cem Helvacı, the chairman of Bursa Kebap House, urged Turkish brands to be courageous about their opening abroad.
"The number of brands coming from all over the world to Turkey is increasing every day. While we compete with foreign brands in the country, we also believe a Turkish brand can make a name for itself and successfully grow abroad," Helvacı said.
"We are one of the strongest players in the Turkish market, and the solid franchising system we set up sets an example for brands," he noted, indicating that the company will continue its investments in the transportation of the brand and traditional tastes abroad.
"We send the meat and dairy products to the Middle East and Iran. We are also creating new added value with the food exports. Everything will be delivered from the center," Helvacı noted.
$15 MILLION INVESTMENT
OVER FIVE YEARS
Moreover, Sweet World CEO İsmail Ağazade noted that Iran has great economic potential with its rich natural resources, especially oil and natural gas. Ağazade added that the country is a big market for the world's most powerful companies with a population of over 80 million, where many Turkish brands invest in the construction, textile and food sectors, and investor cooperation develops, and that it is also an important transit point in terms of growth potential in the Middle East.
Daily Sabah Business