Successful local and overseas franchisors based in Singapore will now receive due recognition with the inaugural Franchising and Licensing Association (FLA) Awards launched yesterday.

The award will be handed out by the FLA in September, and it is the first of its kind to use a software evaluation system (provided by QLBS.com) to assess candidates based on the set criteria (provided by JAS Brands).

The candidates will be judged on five criteria: their franchise business strategy, their system of management and operations support and assistance to their franchisees, their marketing strategy, their franchise relations and their financial performance.

FLA said there are two award categories: the Franchisor of the Year Award and the Promising Franchisor Award.

Speaking at the launching of the award yesterday, Ron Sim, the FLA chairman, said that franchising has been gaining wider recognition as an effective strategy for expanding into the international markets.

There are more than 380 franchise concepts in Singapore – both local and foreign – with more than 3,000 franchisees.

Sales turnover of Singapore-based franchise chains (both local and foreign) is about US$2 billion.

Said Mr Sim: “According to the World Franchise Council findings, franchising has created sales turnover of US$1,500 billion in the US, US$164 billion in Japan and US$30 billion in China.

He said the data “indicates the vast potential of opportunities for Singapore to increase its franchising activities to draw closer to international figures.”

The founder and CEO of healthcare products retailer Osim, Mr Sim himself is a great believer in the franchise model.

About 40 per cent of Osim's 400 outlets around the world are managed by Osim's franchisees.