Franchising System has many advantages in today’s economy.  Compared to other forms of business, the success rate in this industry is much higher due to many reasons.
               
The system itself is described as a transfer of know-how, risk sharing, and co-investment. This combination has become the label for success and profit by saving time and money for the investors. Turkey’s geographic position between the Middle East, Southeastern Europe, The Caucasus, and Central Asia gives it a unique character.  The country’s dynamic economy, with the population of more than 73 million and young and ambitious entrepreneurs makes it an attractive market for franchisors around the world.

Today in Turkey, about one third of the franchisors are foreign companies. Many local retailers also practice franchising, and numerous producers, especially the larger ones in several industries such as furniture, automotive, electrical home appliances use franchising. Although franchising system is a well known concept for Turkish entrepreneurs, some local franchisors use the system with different concept names other than franchising as representative, distributor, or area partner.

TURKISH ECONOMY 2010

1. Turkey's dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector.
2. It has a strong and rapidly growing private sector, yet major participant   of the economy is industry, banking, transport, and communication.
3. The largest industrial sector is textiles and clothing, which accounts for one-third of industrial employment; it faces stiff competition in international markets with the end of the global quota system

TURKISH ECONOMY – FRANCHISING
Current Industry Data:
Development of franchising in Turkey

According to the UFRAD Turkish Franchising Association’s 2010 market research, there are 1876 chains in Turkey today. 24% of these chains are foreign, 74% of these are national brand names.
This is a clear indication that franchising is a major driving force for the economy and creates a global perspective of conducting business with brands that are trusted by consumers.

With the population of 73 million, approximately 60 percent or nearly 43 million people fall under the age of 23.  Many of these young citizens live in urban areas in the western part of Turkey, the most

As advertising becomes more prevalent and television viewership rises in these areas, consumers are becoming more aware of western tastes and practices, which include fast food restaurants. There is an increase in the private entrepreneurship in partnership with foreign firms among the younger generation. 65 like to open their own business, and preferably a franchise. The average annual growth of Turkey’s gross national product has been over 5 percent, although there have been fluctuations depending on the general economic scene.  The 2008 economic crisis in Turkey caused a downturn in expected growth for all sectors; the franchising sector was affected, although not as much as the other sectors.  The economic reforms of the last decade reduced the central government’s regulations of the economy.  Turkey’s private sector is now a key part of the economic production. 

Turkish Franchise Association-UFRAD is the first and only representative of franchising sector in our country. Established in 1991, UFRAD’s main purpose is to enhance trust relations in the franchising system while improving and enlarging the sector. Today, as one of the oldest and strongest franchising associations in the world, UFRAD has more than 120 internationally recognized firms under its roof. Our other important contributions to the national economy are increasing the quality management levels of production, increasing the demand for quality products, and creating employment opportunities. UFRAD puts great effort in educating the investors about the franchising system by providing knowledge and information about legal, cultural, and financial matters to help companies to constitute collaborations in Turkish market and international platforms as well.

Today, UFRAD is a member of World Franchising Council and Policy Board member of European Franchising Federation. UFRAD is also the founder and Chairman of the Board of Black Sea Franchise
Federation, member of Vienna Economic Forum and Foreign
Economic Relations Council-DEİK.