Krit Kranchanabatr, general manager of the firm, said his company planned to open at least 50 new Car-Lack 68 outlets in Thailand this year. The road shows to the Middle East will begin in September, starting in Dubai and are aimed at seeking master franchisees in those markets.

"Dubai, for example, is a growing market with a high-income population. The Dubai government is trying to promote diversified businesses besides oil production that can be owned and operated by its people. Service businesses like Thai spas and car services have shown a great potential in Dubai," said Krit.

He said Car-Lack would next year also expand its franchises into the major neighbouring markets of Laos, Cambodia, Vietnam and Burma.

Car-Lack will take part in Thailand Franchise and Business Opportunities 2006, to be held from tomorrow to Sunday at the Bangkok International Trade and Exhibition Centre (Bitec) on Bang Na-Trat Road. The event hosts the largest number of franchisers in Thailand.

"We saw many entrepreneurs at last year's event who were interested in being our franchisee. But 70 per cent of them had problems with inappropriate land or locations for operating a car-care business," said Krit.

He said that to overcome such limitations, his company had prepared 40 prime locations for individual investors interested in becoming one if its franchisees.

"Our franchisees don't have to own land or find a location themselves, but rather can operate a car-care centre at one of our select locations under a leasing agreement. They must have an operating budget of Bt1.5 million to Bt1.7 million. The franchise contract will be valid for five years, and individual franchisees will take 16-20 months to break even," said Krit.

He said the company had prepared computer software for customer-relations management, in order to ensure the same standard of quality at all of its franchises throughout the Kingdom. The software will help the company with information management and raise service standards for customers.

"We're also preparing ourselves for long-term expansion, by focusing on franchising our car-care centres abroad," said Krit, adding that Car-Lack 68 had been selected by the Business Development Department as one of 25 Thai brands to expand into new foreign markets.

"The main reasons for being selected included our effective management system for products and services and a good perception of the Car-Lack 68 name by our customers. Our growth since we began franchising in 2003 has certainly proved successful. Currently, we have a total of 40 branches in Thailand, 34 of them franchises," said Krit.

He said such uniqueness defined Car-Lack and proved the company's potential to succeed abroad. The road shows start in Dubai in September, with the first stage undertaking a feasibility study of the local market and evaluating customer needs and market competitiveness. The project is expected to be fully under way by next year.

Krit said that despite the economic and political uncertainties, car-care centres continued to do well in Thailand, because their core customers were higher-income earners who still spent money on maintaining their vehicles.

Kwanchai Rungfapaisarn

The Nation