FRANCHISE EXPERTISE APPEALS TO NEW OWNERS OF FASTWAY
23 February 2016 – The CEO of Aramex, the new owners of Fastway, has said that Fastway’s courier franchise model is of particular interest and could be replicated in other regions.
Last month, Fastway Couriers, one of New Zealand’s best-known home-grown franchises, was sold to Dubai-based logistics company Aramex. Aramex does operate via franchises in some countries already and, in our original news story, we suggested that the acquisition of the multi-award winning Fastway might provide additional franchise expertise to the group. Recently, the CEO of Aramex, Hussein Hachem, was in New Zealand and we took the opportunity to ask him some questions about this.
What level of franchising experience does Aramex have and for how long it has been franchising?
We have been franchising since the early 90s with two levels of franchising:
Country level: the franchise is offered for the whole country where the franchisee offers some or all of Aramex core services (EXP, FRT, DOM, Shop and Ship) and operates under the Aramex name. We have franchisees in Africa, Europe and Asia (excluding Angola, Ethiopia, Pakistan, Nepal, Ukraine and Cyprus)
Regional level: the franchisee is assigned to operate within a specific region or city in a country, usually remote locations where Aramex doesn’t own its own operations (except some regions in KSA, UAE and India).
We have country franchisees in 19 countries and we are looking to expand more through franchising especially in Africa. These are: Angola, Armenia, Azerbaijan, Bulgaria, Burkina Faso, Cyprus, Djibouti, Ethiopia, South Korea, Kyrgyzstan, Nepal, Pakistan, Sierra Leone, Somalia, Somaliland, Switzerland, Ukraine, Uzbekistan and Yemen.
Does Aramex see any synergies between Fastway’s franchising experience and its own activities? Do they think there are some areas in which Fastway’s expertise can be applied to their other franchises? If so, what areas might be of particular interest?
We believe that Fastway has a strong franchising model and that we can use their expertise in their different franchising tiers such as:
1. National Master Franchising: we can study their model and apply their best practices to enhance our own country franchising model.
2. Regional Franchising: we can study this model and utilise it in countries where we operate under the franchising model to expand our reach in the franchised countries.
3. Courier Franchising: this is the most interesting franchising model where we see an opportunity to replicate in other regions where we operate, especially that this model supports our agile, asset-light business model.
To what extent was the fact that Fastway is a franchise a positive or negative factor in the company’s decision to purchase Fastway?
It was a very positive factor indeed. Both companies share the same synergies and we highly appreciate the fact that Fastway is built around business owners – ie, franchisees. We believe it’s a perfect match. We have been interested in the Australia/New Zealand markets for quite some time now and after completing the MailCall deal, we went after Fastway Couriers. We’re very happy with the result.
Thank you for talking to us.
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