Commerce vice minister Suvit Maesincee said yesterday the ministry would attempt to persuade big Thai companies to develop franchise businesses to strengthen their competitiveness alongside other global franchises.

Examples he gave of businesses with high potential to launch franchise operations were S & P restaurant, MK restaurant, Chivasom Spa and Bumrungrad Hospital.

Instead of creating their own branches, which is quite a slow means of expanding a business, the franchise method may help them to become international brands and create more income, Suvit said.

He said many large Thai enterprises had run numerous businesses, but not in a franchise form. In order to boost the country's income, large companies should adapt their businesses to a franchise format to make them better known on the international market.

"Thai entrepreneurs will gain more benefits if they conduct their business in a franchise form," he said. The ministry is planning to organise a franchise seminar programme. It will focus on gathering opinions from Thai companies about draft legislation concerning franchise operations.

Suvit said Thai franchisors often faced problems of counterfeit products or services after foreign companies buy their franchises, but the proposed franchise legislation, being written by the Business Development Department, will help eliminate those problems.

Although the laws will only take effect in Thailand, the ministry will find ways of enforcing them in the international marketplace, he said.

The new legislation would also aim to reduce disputes between franchisors and franchisees by seeking a balance between the two sides to help them protect the franchise trademark.

Meanwhile, Business Development Department deputy director-general Kessiri Siripakorn said the department plans to create business alliances between similar small Thai retail enterprises.

The "business matching" structure, he said, would be similar to the Star Alliance, of which Thai Airways International is a member. It will create cooperation and mutual benefits between similar enterprises and help them exchange customers.

Petchanet Pratruangkrai

The Nation