5 Reasons To Explore A Franchise Opportunity In Singapore

Investing in a franchise can be a great way to build your own business. But your franchise business does not operate in a vacuum. You also need a favourable ecosystem that offers you security, stable political infrastructure and an ecosystem to help you succeed and thrive. Singapore, arguably as the most advanced economy in Southeast Asia, offers just that and lots more. 

Related: Why Multi-unit Franchising Is A Smart Investment In 2022

Is Taking Up A Franchise In Singapore A Good Idea?

The answer is a big resounding Yes!

If you are looking to invest in a franchise opportunity in Southeast Asia or the Asia Pacific, then Singapore stands out from the rest. There’s a reason why many multinational franchisors have agreed to set up base in the beautiful country of Singapore.

Singapore consistently tops all major global benchmark studies, including World Bank’s Ease of Doing Business and Global Start-up Ecosystem Index report. Coupled with having the best business environment in the world, Singapore is a natural launchpad and international hub for franchise businesses looking for global success.

Here, we’ll dive deep into the key benefits of exploring a franchise opportunity in Singapore and the three high ROI trending franchise opportunities in Singapore within popular categories such as food & beverage, wellness and even childcare.

1. Pro-Business Environment

Singapore has a thriving startup ecosystem and is ranked one of the most developed ecosystems by global standards for the ease of doing business. A vibrant commercial hub, Singapore ranks as the 18th overall global startup ecosystem as per Startup Genome’s Global Startup Ecosystem Report 2022. The pro-business environment helps foster entrepreneurship and investment, making it a hub for emerging franchises and startups.

A key driver has been the fact that the Singapore government has been at the forefront of supporting the franchising industry and startups and encouraging them.

Singapore's government is also committed to progressive tax structures and offers one of the most attractive corporate tax structures in the world. The Singapore government too provides various initiatives to protect startup interests which have proven to be conducive to achieving success in the extremely competitive franchising industry.

According to the recent StartupBlink's Startup Ecosystem Index 2022, Singapore has a top-ranked ecosystem for start-ups in the Asia-Pacific region. The republic ranked seventh out of 100 in the world. The report is considered to be the world’s most comprehensive startup ecosystem ranking ranks countries based on their country’s favourable tax legislation, ease of doing business, well-developed infrastructure and strategic location.

Franchising and Licensing Association (FLA) Singapore also promotes various initiatives such as the Franchise Competency Framework, which makes it easier for small and medium-sized enterprises to expand and run franchises overseas. Additionally, the Singapore government supports various programs and a growing number of startup accelerators to foster a startup ecosystem that offer access to financial aid and business loans including programs under Enterprise Singapore and its Startup SG initiative.

2. Well-established Franchising Industry

Today in 2022, the Retail sector accounts for 1.4 per cent of Singapore’s Gross Domestic Product. It comprises 15,860 enterprises and employs 116,000 people – 50 per cent of whom work in departmental stores, supermarkets, and fashion sub-sectors.

With Singapore boasting one of the highest internet penetration rates in the world, resourceful and innovative retailers have seized the opportunity to identify new growth and re-invent their business model and expansion. Mature franchising sectors such as the Food & Beverage (F&B) and Education sector as well as emerging sectors like the wellness and health & fitness industry too promise immense potential for growth and franchises that can innovate in line with the market trends and expectations will stand out. 

Secondly, with recent reports revealing that online shopping across the SEA market has shifted to mobile, the shift in focus from the traditional brick-and-mortar store to the online marketplace will likely make the retail industry landscape more competitive. This trend also acts as impetus and presents exciting franchise opportunities in Singapore for local and international businesses to grow their customer base and operations.

3. Open Economy

Being an open economy, Singapore has always been an attractive market for franchisors. Investing in Singapore gives you huge earning potential and access to the low headline tax rate, generous tax exemption and incentives, world-class infrastructure and modern amenities. These help franchisors greatly reduce tax expenses. As one of the world's most open economies, Singapore's GDP has been growing at a healthy rate averaging 7.7%. Singapore’s small size and lack of natural resources mean that it has to import even the most basic daily requirements such as food, water and raw materials and produce goods for export to pay for them.

The low tariff regime, extensive 27 free trade agreements and the fact that total trade exceeds 300% of gross domestic product and in many ways fosters collaboration that drives growth. The pro-business approach offers many benefits for exporters and investors such as like tariff concessions, preferential access to certain sectors, faster entry into markets and Intellectual Property protection.

The popularity of franchising and licensing continues to rise as more businesses adopt this model to expand their operations in foreign markets and entrepreneurs venture into local markets.

4. Strategic Location As An Asian Hub

In addition to being a global financial hub, offering well-developed infrastructure, efficient administration, and low taxes, Singapore’s strategic location is one of the major reasons why it is a top contender as an ideal gateway for businesses trying to access the world’s fastest-growing consumer markets such as China, as well as other Asian markets.

The country’s multi-ethnic society also makes it an ideal location for foreign franchisors to test their concepts and use the reaction to gauge the acceptance of their franchise in Asia. Singapore serves as a regional showcase and even distribution centre for franchisors willing to explore the Asian market.

5. Highly-skilled Local Talent Pool

A strong pool of Singaporean talent is another key factor that continues to draw international businesses to Singapore. Singapore topped the World Bank’s Human Capital Index which measures which countries are best in mobilizing the economic and professional potential of their citizens. Consistent efforts by the government, education institutions, industry and labour movement to train the local workforce have ensured that Singapore is able to respond swiftly to the changing global economic landscape and opportunities and has a rich talent pool.

Singapore is leading the way in addressing the existing skills gap with two approaches having shown promising success: the reskilling of our existing workforce and the reshaping of the current educational curriculum. Additionally, Singapore also supports SMEs within the retail industry through key initiatives to help make going digital simple for local SMEs in the retail industry and eventually help create a pipeline of talent to support the retail sector's growth. These include the Retail Industry Transformation Map (ITM) and Retail Industry Digital Plan (IDP).

Such initiatives have helped equip Singaporeans with skills to develop a future-ready workforce as well as help foster a comprehensive ecosystem for skill development. Recently, the Singapore government also announced the Food Service Industry Transformation Map 2025 to help the food services sector that battled waves of disruption due to the COVID-19 pandemic. These initiatives aim to further develop and implement talent development programmes to support the growing demand for emerging job roles and skills.

Trending Franchise Opportunities In Singapore

Across the franchising landscape in Singapore, while the F&B sector has always been strong, the education sector has shown consistent momentum and the wellness, health and fitness sector have attracted immense attention from potential franchisees and investors. Let’s walk through some of the emerging top franchise opportunities in Singapore among each of the major sectors.

F&B Franchise Opportunity: Gloria Jean's Coffees

Gloria Jean’s Coffees is a global success story serving quality gourmet coffee to over 35 million customers each year, in over 686 coffee houses in over 40 countries. Gloria Jean’s Coffees is about one simple thing, making the best coffee possible. It’s about all elements coming together perfectly to ensure quality, consistency and speed for every cup of coffee made.

Learn more about the Gloria Jean's Coffees franchise opportunity at Franchise Feature - Gloria Jean's Coffees.

Fitness & Beauty Franchise Opportunity: Fight Zone

Fight Zone is a high-intensity, quick training concept that utilises functional fitness with a combination of Muay Thai techniques. Their innovative approach to the 30-minute conveyor belt system with heart rate-monitored workouts keeps members engaged and motivated with guaranteed results. With no class times and workouts changing daily, they serve to challenge and empower the minds, bodies and souls of each individual to express themselves through fitness as a complement to their daily schedule.

Learn more about the Fight Zone franchise opportunity at Franchise Feature - Fight Zone.

Child Education Franchise Opportunity: Red SchoolHouse

Founded in 2004, Red SchoolHouse is a multi-award winning preschool chain and has always been focused on educating young minds. With centres in both the local Singapore territory and overseas markets, Red SchoolHouse is backed by a passionate and business-savvy team that understands the needs of the franchisees & parents.

Learn more about the Red SchoolHouse franchise opportunity at Franchise Feature - Red SchoolHouse.