Morocco’s Franchise Sector Struggles Amid Economic Downturn and Job Cuts

The year 2021 should be crucial for all industry professionals. Following the reduction in the workforce of their clients and their activities, for all sectors, businesses are still unable to recover, despite the multiple initiatives taken by the state. The president of the Moroccan Franchise Federation (FMF), Mohamed El Fane, in a statement to MAP, commended the various public actors for their efforts engaged during this difficult situation experienced by franchise and organized retail players, especially with regard to the actions and initiatives of support taken by the Economic Monitoring Committee (CVE).

He did not fail to urge the players to make more efforts and tangible measures, like foreign countries, through subsidies for the coverage of fixed costs including rents and payroll, the abatement of tax commitments, as well as low-interest financing. Mr. El Fane estimated that it will be necessary to initiate a program of support and technical assistance for the review of business models for franchises and the integration of businesses into the digitization programs set up specifically for industrialists, to support the transformation and upgrading of franchises.

Regarding the restaurant sector, employing more than 1.2 million employees, the president pointed out that this sector is represented by more than 100,000 units of different sizes and specialties, having lost 50% of their turnover on average and incurred an additional debt rate of more than 50%. Due to this situation, several companies have had to close. Apart from a few sectors that are emerging, the franchise sector is sinking more and more. It therefore becomes urgent to put in place appropriate solutions to save the sector.