Focus: Asia Franchise Markets April 2016 | Page 4

History of the Market. Japan Market The franchise industry started in 1963. It was originally developed in the QSR sector by a Japanese restaurant company in Kyoto. The franchising industry has since become a multi-billion dollar industry across a wide range of sectors. Overseas franchising has helped the development of Japan's franchise industry since the early 1970's and the number of companies that have chain headquarters located in Japan has surged since the appearance of foreign capital companies. Over the years Japanese consumers have become open to overseas franchise concepts although care must be taken to match products/services to local tastes, culture and thinking. Foreign franchising businesses should not always think Tokyo, Japan has a choice of economic regions, as will be discussed later in this edition, each with their individual benefits and slightly different tastes. There are a number of ways to enter the market: 1. Establish an office in Japan and open a corporately owned subsidiary. 2. Enter into joint venture partnership. 3. Sign a Master franchise agreement. 4. Run a test bed shop via an individual franchisee. Key Franchise Points * Opening an office in Japan requires a Japanese registered Director however a satellite office can be opened by a foreigner