FRANCHING ISLAMIC FINANCIAL SYSTEM? some thoughts....

ISSUE 1:

The most profitable businesses exhibiting success under franchise are those that have an excellent record of profitability and those that can replicate Islamic financial services and products successfully. Some thoughts on the success of franchising in Islamic financial system.

SOLUTION:

Franchising is a holistic culture of mutual cooperation towards noble cause of progress & prosperity in the spirit of corporate brotherhood for the socio-economic benefit of all, which is justified by the Qur’anic principle “…..help each other in righteousness and piety, but do not cooperate among you in sin and rancour….” (5:2).

Considering the contemporary phenomena in the rapid growth by 18% p.a. with global appreciation of the Islamic financial system, it may be the right time to enrich the franchising culture within the Islamic financial system for a common greater achievement by sharing the acceptable Shari’ah standard in terms of policies, system, talent, technologies, products, operation & culture.

Hence, with the dynamic slogan of “progress & prosperity in Islamic financial system for the common benefit of all by waiving the issue of one’s religion, race, culture, status, gender or nationality”, unjustifiable & unacceptable completion within the Islamic financial environment shall be avoided, which shall be replaced by justifiable cooperation with utmost wisdom, mutual respect, care, share & concern. This noble paradigm may successfully be facilitated by a Shari’ah compliance of Franchising culture among the Islamic financial industries across the world.

ISSUE 2:

Key franchising sectors in the Islamic finance and its future.

SOLUTION:

Prime franchising sectors in the Islamic financial engineering may include the followings:

(i) Policies & Guidelines.
(ii) System.
(iii) Talent.
(iv) Technologies.
(v) Products.
(vi) Operation.
(vii) Corporate Culture.

By the enrichment of the Shari’ah compliance of the franchising culture within the Islamic financial environment, may help the industrial growth of the Islamic financial system with greater significant results not only for the corporate players, but also for the customers including the innocent beneficiaries.

ISSUE 3:

The first step to franchising in acquainting regulators, operators, players, participants & customers with the Shari’ah principles.

SOLUTION:

There are ten components of the first step to franchising of Islamic finance in acquainting every involved one (be one regulator, decision maker, operator, player or customer with equal requirement from the respective counter part of the franchisor & the franchisee) with the basic relevant principles of Shari’ah, not only in mind but also in action, namely:

(i) Exclusive division (Shari’ah compliant / Islamic Finance).
(ii) Conceptual understanding of Shari’ah (Maqasid al-Shari’ah) affecting franchising of Islamic finance.
(iii) Regulatory frameworks (relevant Shari’ah rulings) governing franchising of Islamic finance.
(iv) Shari’ah approved Documentations (policies, guidelines, forms & procedures).
(v) Technical-know-how (with the Shari’ah standard) facilitating the franchise objective affecting Islamic finance.
(vi) Operational mechanisms (with Shari’ah compliance) for an effective management of franchise objective of Islamic finance.
(vii) Customers’ rights, obligations & behaviours as per approved by the Shari’ah principles in participating in, contributing to, cooperating with & benefiting from franchised Islamic financial operation.
(viii) Public awareness plan with franchising of Islamic financial system.
(ix) Establishment of a Shari’ah secretariat (Shari’ah compliance division with R & D). (x) Establishment of a Shari’ah council (for advising & decision making).