WIPO & Kenya Franchise Association Franchising Seminar February 2006 Gavin J. Bell

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 Restaurants Kengele’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.

Last year 87% of all USA business start ups started under a Franchise System! Be at the forefront of a new business era. Thank You….