The International Tourism Research Centre (ITRC) of the Institute for Tourism Studies (IFT), together with Oxford Brookes University, UK held a seminar on 2 December at IFT, Macao campus on "Successful Franchise Partnerships: Partner Selection and Relationship Development". The seminar, attended by about 30 delegates from the hospitality and retail industries and government officials, was the culmination of a two-year research collaboration between ITRC and Oxford Brookes University on identifying the key factors in stimulating and maintaining successful international franchise partnerships. The research also sought to identify problems and difficulties faced by local SMEs in Macao in terms of expanding their economic and commercial operating advantages. Franchising is an important form for expanding economic activity and participation especially toward the goal of diversification and wealth distribution. During the seminar, the research team comprised of Prof. Levent Altinay and Dr. Maureen Brookes from Oxford Brookes University and Dr. Ruth Yeung from IFT, pointed out that it is important to understand the mutual expectations between the franchise partners with the goal to protect the brand image and ensure the product quality as well as to maintain the standardisation of the product with minimal adaption due to cultural difference. Dr. Maureen Brookes also commented that to ensure the sustainability of their business, potential franchisees have to put more effort on research which includes the acceptance level of the franchise brand among the customers in Macao; the potential growth of the market; and the background of the franchisor as well as their plan for future development. Dr. Ruth Yeung of IFT suggested that there are plentiful business opportunities given the growth of tourism in Macao. Products marketed to local residents should include innovative ingredients while tourists, in particular those who come from Mainland China, often look for high quality and good value products. Macao franchisors can develop further by following a well designed franchise model which provides a standard operating procedure, emergency plan and human resource management. Finally, SMEs also require government support to overcome the challenge of the shortage of human / financial resources and the complication of brand registration for future business success.
