Middle East Proves Fertile Ground for Franchisors

The market for franchises is blossoming in the Middle East, as two American brands are discovering. Wing Zone, an Atlanta-based wing concept, recently opened its first location in Saudi Arabia earlier this year and has found tremendous success in the region. The opening is part of an international expansion strategy for the 100-unit brand that includes future openings in Panama, the Dominican Republic, Malaysia, Dubai and Russia. “We are flooded with inquires, as experienced international operators look to lock up top-tier territories and are impressed with the flexibility of our model,” Wing Zone CEO and Co-Founder Matt Friedman said. Another brand with an eye on the Middle East is Tea Lounge, a newly-launched franchise headquartered in Brooklyn, New York. Tea Lounge CEO Jonathan Spiel recently announced the brand’s first master franchise agreement had been signed in Kuwait. “We are extreme excited to be entering the Kuwait market as we feel that the local residents will Embrace Tea Lounge’s community and social experience,” Spiel said in a press release. The agreement is not only the first international agreement for the community-oriented café concept but also its first as a franchisor. Franchise consultant and CEO of SMB Franchising Steve Beagelman says a large part of the reason American concepts are seeing success in the Middle East is because each party has something the other wants in a partner. “The international markets in general are attractive to franchisors because the people in those international are craving U.S. brands that they can bring over,” Beagelman says. “Everybody wants something they can’t normally get. The second thing is the financing issue is not as challenging for franchisees in those international markets. Here in the U.S., financial markets for franchisees have tightened up. The real players in international markets have the funds.”