The government is considering privilege packages for Thai franchises in a bid to promote them in the world market.
Deputy Commerce Minister Suvit Maesincee, who presided over the opening of the "Excellent Thai Franchise" event yesterday, said the franchise business still had a lot of potential growth given its easy access.
Thai franchises have a market value of about 200 billion baht or 9% of the country's retail business,
"As the government is committed to raising revenue from service shipments, franchising is one of the businesses that can enable Thailand to achieve the goal and support the economy," Mr Suvit said.
"Responsible authorities are studying the tax perks to support and promote the franchise business through the Board of Investment's privileges."
Mr Suvit said the proposed incentives would include credit guarantees and a reduction in corporate income tax.
Details of the new tax packages are expected to be finalised soon.
Apart from tax perks, the Commerce Ministry also plans to encourage Thai franchises to tap opportunities in key cities in China, India, the Middle East and Asean.
"From 2016 to 2018, we aim to promote no fewer than 300 Thai franchises and about 1,800 branches into the world market," Mr Suvit said. "This will create value to the economy worth about 6.3 billion baht."
Thailand has 1,519 franchise operators, with 38% in retail, 28% in food and beverages, 23% in the service sector, 6% in education and 5% in beauty and spas. About 1,200 are registered as juristic persons and the remainder as individuals.
Their combined registered capital is about 59.5 billion baht.
Sawad Mitaree, chairman of the Franchise & License Association, said of the total 300 members of the association, 100 were found to be ready and have potential for export expansion.
About 30 Thai franchises have established a presence in overseas markets, including Sukishi, Black Canyon, Chao Doi coffee and Smart Brain Institute.
Businesses seen as being particularly suitable for franchise expansion are food and beverages, spas, car care service and education.