Department of Business Development Accelerates Franchise Sector Growth to Support 300 Billion Baht Market
Thailand's Department of Business Development is upgrading the franchise sector through standardized management practices and financial support to boost the 300 billion baht market, which grows 15-20% annually. The initiative aims to help f
The Department of Business Development is accelerating efforts to upgrade Thailand's franchise sector to support a growing 300 billion baht market. Poonpong Naiyanapakorn, director-general of the Department of Business Development under the Ministry of Commerce, stated that franchise business is a crucial mechanism for the nation's economy in creating employment, generating revenue, and distributing business opportunities to regional areas. Implementing systematic management standards in line with international benchmarks will build confidence between franchisors and franchisees and create a strong foundation for quality business growth.
The franchise sector is currently showing continuous growth with a combined market value exceeding 300 billion baht and an average annual expansion rate of 15-20%, reflecting the potential of a business model that expands systematically and generates income. On April 29, 2025, the department organized the "Elevating Business to DBD Franchise Standard" event under the concept of "Standard-Scale-Success" to upgrade Thai businesses through franchise systems as an efficient business expansion strategy. Expert franchisees were invited to share knowledge and development guidelines covering branch expansion and growth strategies, franchise model creation, franchise manual development, branding, finance and fee structures, online content creation, personnel development, and digital technology for franchises. A special panel discussion on "Standardize to Scale: Franchise Success Stories" was also held to inspire entrepreneurs to apply lessons to their own businesses.
The department also provided financial support through partnerships with financial institutions, including SME D Bank, which offered special credit privileges totaling 200 million baht to franchise businesses that passed the additional assessment from the DBD Franchise Standard program. An estimated 40 businesses are expected to pass the assessment this year. Additionally, the department partnered with Lotus to provide special commercial location privileges, with Lotus waiving initial fees for franchises selling products within their stores, enabling franchise businesses to start operations comprehensively.
Poonpong noted that franchise business plays an important role in the economy as a mechanism that creates jobs, generates income, and expands business opportunities. Franchising is therefore an investment option that reduces risk due to its proven management systems and business models. Elevating the potential of Thai franchise businesses to international standards will help them compete amid economic volatility. Combining business standards with access to capital will strengthen Thailand's franchise system and serve as a key driver for entrepreneurs to grow steadily in the long term.
Currently, 571 businesses have met the DBD Franchise Standard criteria, with food businesses comprising 257 establishments (45%), beverages 115 (20%), services 72 (13%), education 70 (12%), retail 33 (6%), and beauty and spa services 24 (4%).
