We must face the harsh reality that around 300,000 small businesses in the Kingdom have failed financially, out of a total of one million businesses, according to

the analysis of the author of these lines.

Although this failure raises many questions and has sparked surprise and debate, we are not setting out to examine the case from a technical and managerial perspective in order to take a closer look

on the key factors that can make our small businesses more efficient and effective. Perhaps this introduction provides a direct gateway to the world of franchising, which promises wealth

and success while sparing these businesses the so-called trial-and-error process.

In light of Saudi Vision 2030, our young people should be firmly convinced of the significant role franchise projects play and their impact on economic growth

and prosperity in Saudi Arabia. Anyone observing the retail stores in shopping malls will find that more than 80% operate under the franchise model. Saudi Arabia was

the first country in the Middle East to become familiar with the system Franchise in the 1970s, forty years ago. Businesses operating under the franchise model have all demonstrated their success

when compared with traditional small businesses.

Here is a summary of my experience and knowledge, accumulated over more than twenty years, during which I became familiar with the most important global systems. This has reinforced our conviction that we must understand these

Industry is shaped by our culture, economic systems, and creative potential. Today, we’ll explore the 12 key principles for anyone seeking to build wealth by acquiring a successful business.

with a distinctive business model FranchiseThese are the key principles:

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1. Set a risk tolerance—this is a trait of successful entrepreneurs.

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2. Find a franchise opportunity that’s right for you and contributes to your country’s economy.

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3. Narrow down your options. Distractions can lead you down paths you may regret.

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4. Once you’ve chosen a company, research it in detail and learn about its business model and what the franchisor offers. At this stage, you need to

conduct thorough due diligence on the target brand.

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5. Remember that once you own a franchise, you’ll be free to run the business. The trade-off is hard work and constant thinking.

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6. Be aware that your relationship with the franchisor will pass through six stages, beginning with excitement and ending in mutual cooperation.

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7. Make sure the franchisor has a comprehensive training program that helps you and your team develop a sound understanding of how to handle the franchisor’s products and services.

This is where the franchisor and franchisee share trade secrets and effective marketing and training programs.

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8. Contact former franchisees to learn the finer details and insider secrets of the franchise you’ve chosen.

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9. Review the contract’s terms and conditions carefully, clause by clause and point by point.

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10. Keep in mind that full transparency in all financial transactions between the franchisor and franchisee is essential to the franchise’s success and growth.

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11. Signing the contract means joining the franchisor’s family—a group of people from diverse cultural and social backgrounds who share a commitment to growing and expanding

the business you previously chose. You’ll meet executive managers and perhaps the owners and founders, because you’ve become part of the franchise family you joined.

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12. Build an administrative team suited to the nature of your franchise, while ensuring steady cash flow that allows you to meet your financial obligations.