The Ministry of Trade and Integration of the Republic of Kazakhstan held a workshop on the development of franchising in the country. The meeting brought together representatives of government agencies, entrepreneurs and experts to discuss current amendments to the legislation on franchising initiated by the Central Asian Franchise Association (CAAF), as well as to develop support measures for this important industry.
First Vice Minister of Trade and Integration of the Republic of Kazakhstan, Aizhan Bizhanova, opening the meeting, stressed the importance of franchising for the economy of Kazakhstan.
"The field of franchising in Kazakhstan is very large and important from the point of view of trade turnover. We need to resolve the current issues of regulation of this sphere in order to ensure its stable development. This area is one of the key areas for the development of small and medium-sized businesses. We must create conditions that will allow entrepreneurs to effectively develop their franchises and attract investments," she said.
During the discussion, the meeting participants focused on the need to modernize existing legislation, which, as noted, is of a framework nature and does not reflect modern realities. Gulbanu Maigarina, Chairman of the Central Asian Franchise Association, added:
"Today we are facing serious problems in the field of protecting the rights of franchisors and franchisees. It is necessary to create clear rules of the game that will ensure the protection of the interests of all market participants."
Discussing the existing problems faced by franchisors and franchisees in Kazakhstan, the participants also noted the need to introduce self-regulation mechanisms in the field of franchising.
"Business is a dynamically developing sphere, and the state may not always be competent enough in this matter. We must create conditions for self—regulation so that the market can develop according to its own rules," said Beksultan Mukatov, Deputy Director of the Department of Economic Integration of the National Chamber of Entrepreneurs "Atameken".
The meeting participants also discussed the importance of creating a licensing system for franchise packers.
"There are many packers on the market today, but not all of them act in good faith. We must establish requirements for their competence and responsibility," Mukatov stressed.
He also suggested considering the introduction of the institution of licensed brokers for franchise registration and the development of mandatory regulations that disclose the financial model of the franchise.
"We are witnessing how franchising is becoming the engine of the economy in the world. In the USA, for example, it occupies 3% of GDP. We need to create conditions for franchising to become as important for Kazakhstan," Mukatov added.
An important aspect of the discussion was the involvement of international experience in the development of franchising in Kazakhstan. The meeting participants noted that successful practices applied in countries such as the USA and European countries can become the basis for the formation of an effective franchise system in Kazakhstan.
Following the meeting, it was decided to create a working group with the participation of representatives of government agencies, business and public organizations. This will make it possible to comprehensively work out and discuss detailed amendments to legislation, as well as the preparation of measures to support successful franchises, including the export of their models abroad.
"Franchising should become one of the drivers of the Kazakh economy. We see its potential not only as a tool for SMEs, but also as a platform for bringing ready-made projects to foreign markets. It is important to create conditions under which every business can grow sustainably and safely," the First Vice Minister of Trade summed up.

Source : https://www.gov.kz/memleket/entities/mti/press/news/details/891275