FRANCHISING AS A CATALYST FOR ECONOMIC DEVELOPMENT AND JOB CREATION IN NIGERIA

Abstract

Franchising has emerged as a viable strategy for business expansion and the widespread distribution of goods and services, gaining widespread acceptance globally, including in Nigeria. Prior to the advent of franchising, consumers often traveled extensively to access renowned products, brands, and quality services. However, with the rise of franchising, globalization has enabled the expansion of esteemed brands, making them readily accessible to people in their local communities. It has also addressed the issue of unemployment amongst the youth, which is the country’s large population. This study utilized doctrinal methodology and accordingly gathered data from primary such as statutes and case law as well as from secondary sources which include journal articles, books and internet sources. It was found that there is no specific franchise law in Nigeria but there are various laws and institutions that impact on franchising such as intellectual property laws, investment promotion laws, and financial regulations. It was also found that franchising is a driver for job creation and employment in Nigeria. The study recommended that government should enact and enforce a robust legal and regulatory framework specific to franchising. This will provide clarity, protect stakeholders, and promote best practices, thereby enhancing investor confidence and sectoral growth. It was further suggested that financial institutions should develop franchise-specific lending products and collaborate with development banks to provide affordable credit facilities to prospective franchisees. This will lower entry barriers and support the expansion of SMEs within the franchise sector.