Franchise businesses are growing faster than any other sector of the economy. And they are also creating jobs at a faster rate.

In the United States, for the fifth year in a row, 2015 is expected to see another major expansion: 5.1% according to projections from the International Franchise Association.

In the UK, growth from 2003 to 2013, when the most recent comparable data is available, shows that franchises expanded by 42% in terms of turnover, well ahead of the 11.5% growth in real GDP.

And in Myanmar ????? Yes, Myanmar: the lucrative new Asian franchise market.

As it is new to the franchise industry, it naturally lags behind its Asian neighbors: Indonesia has 486 franchise brands and 39,000 outlets; Malaysia has 666 brands and 5066 points of sale; The Philippines has 1,500 brands and 140,000 points of sale; and Singapore has 500 brands and 3,000 points of sale (PFA). Industry in these countries, like the US and the UK, creates jobs and contributes to GDP. Myanmar aims to follow this and has recently created its own Franchise Association.

Currently, the Association has many obstacles to overcome, especially since it has limited legal powers and the Government does not fully support the group, but it is early. For franchisors, Myanmar has been seen as the remaining Asian frontier and is attracting interest from foreign countries, Japanese and Korean food franchises are especially popular. These chains will often keep some of their home food flavor products to differentiate and appeal to consumers looking for traditional flavors. Big name companies like KFC and Starbucks are actively investigating Myanmar, as low overhead and lack of competition are key entry factors.

Myanmar has a population of more than 50 million consumers and the SME business is thriving, accounting for 97% of all businesses. For these smaller companies, a more organized franchise system would give them the opportunity to explore franchising as a growth path. There are currently around 50 top franchise brands in the country, but as franchise regulations improve and franchise awareness becomes more widespread, we expect to start a strong rebound in this number.

The presidential economic adviser, U Aung Tun Thet, stated that the main obstacle is not the lack of specific laws or associations, but simply the lack of knowledge of how franchises operate.

There are concrete steps that can be taken to support franchise development, the Myanmar franchise association must be recognized and supported by the government and. Hopefully, the government will listen and that franchises will contribute heavily to GDP and will be an economic engine for years to come.