Micro-franchise Business Consultant, Feasibility Study & Approach Development - Jordan

Job Description

Micro-franchise Business Consultant, Feasibility Study & Approach Development - Jordan
Period of Performance: June 2017 – August 2017
Level of Effort: 50 Days

1. Project Background
The USAID Jordan Local Enterprise Support Project (USAID LENS) is a five-year project to encourage the long-term economic growth and development potential of underserved Jordanian communities. The project will help empower local communities to design and implement collaborative local economic development (LED) initiatives and will support the vitality and competitiveness of micro and small enterprises (MSEs) that are often at the heart of individual, family and community livelihood within vulnerable populations. USAID LENS’ core purpose is to support the vitality and competitiveness of micro and small enterprises, through building MSE capacity to enhance their productivity; the project will work directly with MSEs in targeted sectors to identify market-based opportunities for growth and development. In its inter-related activities, the project will work with public and private sector partners at the municipal, governorate and national levels to develop local environments conducive to investment and MSE growth.

2. Objectives
The 2011 General Economic Establishments Census revealed that micro, small and medium enterprises (MSMEs) represent 98% of all Jordanian enterprises, employing 70% of the total private sector labor force. 66% of these have less than 19 employees. More recently, the USAID LENS MSE Survey has revealed that approximately 50% of MSEs report a gross revenue of 1- 500 JOD per month, with over 70% unable to make any savings at all. Women-owned businesses are particular disadvantaged in their financial performance. Almost 95% of all MSEs have received little or no support in the management and day-to-day running of their business. As such, the majority of MSEs in Jordan struggle to make a basic livelihood, and are limited by a number economic barriers that prevent their sustainable growth.

USAID LENS is committed to supporting MSEs to develop their long-term independence and sustainability, through helping MSEs to better engage in the business market and strengthen their performance at the market level. As part of these efforts, the Project will assess the economic opportunities relating to the development of micro-franchising models in specific economic sectors. Micro-Franchising seeks to offer an option for employment by providing people without an entrepreneurial background a business blue-print through which they can improve their business’ marketing, standards and overall customer service. The micro-franchising model represents an opportunity for MSEs to become more widely recognized for their quality and capacity to serve a more diverse set of customers and expand into new markets.

From a socio-economic perspective, micro-franchises are often larger than traditional microenterprises, thus creating jobs and employment opportunities for Jordanians. To determine the potential of such a model, the Project is looking to hire an international consultant specialized in micro-franchising and franchising models.

The Consultant will work closely with USAID LENS to develop a feasibility study detailing the specific opportunities for the adoption of a micro-franchising model in Jordan. USAID LENS works in transportation, tourism, and food processing, as well as ICT as an enabler. However, this assignment is not limited to these sectors/subsectors and the consultant is to assist in identifying the sectors that have the greatest potential.

The consultant will collaborate with USAID LENS and key stakeholders to build a micro-franchising and/or franchising feasibility study that targets 1-3 economic sub-sectors, (illustrative examples include dry-cleaning, restaurants, mechanics or spare parts). Based on the work already done by USAID LENS and its stakeholders, the Consultant will draft a feasibility study that ties together international practices, case studies and successful international examples, and lead focus groups and conduct field-research to identify the potential of micro-franchising in Jordan. This will be supported and evidenced in a market-demand study. This study will be presented to the USAID Mission in Jordan as well as other stakeholders active in this endeavor.

The consultant, will work in developing the following:

• Market Analysis: Market Profile; Target Market and Characteristics; Market Potential and Demand; Analysis of Competition; Supply Analysis.
• Gap identification Micro-franchise Recommendations and Financial Analysis: (Start-up costs; Operating costs; Revenue projections; Sources of financing; including details on where microfinance institutions could integrate, and Profitability analysis.
• Market replication analysis/ Micro-franchise operating model: Feasibility of systematizing and replicating a component of its business model to scale, estimating the required budget/s and assuring sustainability.
• Risk assessment of the potential threats and weaknesses of each identified micro-franchising opportunity and proposed mitigation strategies to limit risk. Risks associated with the franchising model may include but are not limited to the following: 1) Legal risks: legal differences in various countries might exist especially when international investors are involved. It is important to confirm that standards and regulations that are related to the franchising model are acceptable across both franchisor and franchisee countries; 2) Operational risks: this includes the control over franchisees’ network, delivering up to standards (Brand risk and Quality Control) and network expansion.

The Consultant will consolidate information and devise/design a governorate specific operational model for micro-franchising model, structure, and budget for ‘Aggregator’ within the local context which will allow local institutions to adopt and build to scale in different sectors and sub-sectors, Further, the Consultant will advise on best practices for potential micro-franchising management structures, in the form of launch plans.

3. Tasks
USAID LENS proposes to support MSEs in Irbid, Zarqa, Amman, Tafilah, Aqaba, and Karak in an effort to empower MSEs to successfully sustain a business by exposing them to new teachings, tools and business models techniques which are to be applied and adapted to the Jordanian context.

Exploring the micro-franchising model will aim to establish a chain of potential micro-franchises within sectors that show significant potential. The consultant will propose an array of micro-franchising models which will allow targeted MSEs to with little to no business experience to be succesfully integrated within the economy. The impact of this activity should contribute to USAID LENS key indicators, including supporting targeted MSEs to increase revenue, create jobs, and build linkages with other economic partners.

The Consultant will deliver a full, comprehensive analysis as to the potential of the adoption of a micro-franchsing model in Jordan. As part of this report, the Consultant will detail the following:

• Conduct a literature review of international best practices, existing, successful and failed efforts to incorporate micro-franchising models.
• Consolidate data and research conducted by USAID LENS, and hold focus groups in partnership with USAID LENS and key stakeholders to determine the supply and demand for companies relating to micro-franchising.
• Identify up to three sectors that could be suitable for a micro-franchising model and conduct a market-demand study that outlines the financial, operational and social feasibility of micro-franchising within these sectors. (Gap and opportunity identification)
• Propose a business model/s to follow and implement the proposed micro-franchising concept based on the identified opportunities.
• Characterise the MSEs/ entrepreneurs to be integrated within the concept.
• Produce a stakeholders list of potential key partners and institutions capable of developing, supporting and sustaining the micro-franchising model.
• Develop risk assessment based on research and focus groups relating to the issues that may arise affecting the success and sustainability of the micro-franchising concept.
• Develop a timeline and/or Gantt Chart detailing the anticipated approach and how the micro-franchising model can be effectively developed.
• Submit a comprehensive feasibility study with an implementation approach (including an operational model and examples of best practice) for Micro-franchising in Jordan.

4. Timing
The consultancy task will be carried out over a period of 50 days.

5. Deliverables
The selected consultant shall be responsible for preparing and submitting the following deliverables by the below due dates (Note: due dates will be updated once subcontract is finalized):

• Provide a detailed implementation plan for the task along with a Gantt chart (no less than one page, no more than 2 pages) - 5 working days after signing
• Provide literature review of existing research and international best practices (no less than 4 pages) - 10 working days
• Conduct Focus groups with a minimum of 20 MSEs per sector identified based on the literature review and information and consultation with USAID LENS and its stakeholders - 15 working days after signing
• Submit demand and supply analysis (no less than 5 pages, more than 10) - 30 working days after signing
• Submit risk assessment (no less than 2 pages, no more than 5) - 35 working days after signing
• First Draft of the Feasibility Study & Approach Development (minimum of 20 pages), including a clear section on the proposed governance model, structure, and budget for ‘Aggregator’ - 40 working days after signing
• Final Draft of Feasibility Study - 50 working days after signing (subject to USAID LENS approval)

6. Required Skills and Experience

• At least 10 years of experience in international development, franchising, business and financial management or similar fields.
• Demonstrated experience conducting feasibility studies and developing business plans.
• International experience in micro-franchising and franchising, with experience in international aid, foreign aid, development and in-country experience in emerging and developing economies.
• Excellent collaboration and organizational skills.
• Advanced degree in finance, business planning, economics, international development,
• Fluent in English and preferably Arabic (although not required)
• Experience in the Middle East a plus

8. Award Type and Selection Criteria
Payment will be based upon level of effort with reimbursement for related, budgeted expenses. This will include transportation expenses based on standard USAID LENS rates as well as per diem costs as relevant. Award will be based upon best value (a combination of qualifications and proposed daily rate).

9. Submission Requirements

The applicant should provide:

• Resume/CV, not exceeding two pages, containing, but not limited to: 1) Previous experience with similar activities; and 2) List of three references with contact information (name, company or organization, phone number, and email) who can independently verify past work.
• Confirmation of availability to perform the work during the anticipated period of performance indicated above.
• Cover letter with a statement describing the applicant’s capability to complete the assignment and proposed daily rate (1 page maximum)
• A proposed methodology and approach (2-page maximum)
• FHI 360 signed biodata form containing the justification for applicant’s proposed daily rate in USD and JOD (see attachment).

Submissions should be sent to LENS-consultant@jordanlens.org, with the subject line: Micro-franchise Business Consultant.

About the Organization

FHI 360 is a nonprofit human development organization dedicated to improving lives in lasting ways by advancing integrated, locally driven solutions. Our staff includes experts in health, education, nutrition, environment, economic development, civil society, gender, youth, research and technology — creating a unique mix of capabilities to address today's interrelated development challenges. FHI 360 serves more than 70 countries and all U.S. states and territories.

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