Franchising has become one of the most popular ways of growing small businesses.
The model is widely used and has gradually diversified to cover the traditional sectors such as fast food restaurants, convenience stores, laundries, restaurants to local industries such as herbal tea shop, early childhood education until recent years, emerging industries such as mini-warehouses, wine stores, pet shops, fitness, tutorial, etc. The reasons for higher adaptation include:
|•||HK's own population (over 7 million) and consumerism model is a lucrative market for business expansion already; plus its prime location in Asia makes Hong Kong a perfect spring board for franchise brands to expand businesses in Asia, serving as the best trade and logistics hub in the region;
|•||Hong Kong share similar culture, tastes and consumer habits to the Chinese consumers. With millions of Mainland China’s tourists and shoppers visiting HK each year (over 40 million in 2013), brands can showcase their products to Mainland China’s tourists, using HK as a stepping to learn of their shopping habit and preferences before entering the Mainland China market;
|•||Hong Kong has a sound legal system and a simple tax system with low tax rates, providing a business environment of fair competition full of opportunities|