Is my Franchise ready for International Expansion?
Nick Strong, MD - Select Your Franchise
For established franchisors with a well developed network the question can often arise “Well what next?”. When you have saturated your own country what then? The most apparent answer to the riddle is to look further afield, to other countries where franchising is already a recognised business method. However, it can seem a daunting task, dealing with possible language and culture conflicts and misunderstandings.
So when is the right time?
Plan Early
Before you even start to consider getting anything in motion, planning is crucial. Make sure you plan carefully to ensure you have a roadmap to assess your progress and keep you on track.
Don’t Chase leads
It’s a temptation if you get an impromtu lead from another country to go after it as a ready made entry into that market. Better to ensure you have your plans set out first and seek out an international business partner that suits the plan best rather than jumping on something that turns out to later be not what you expected.
Analyse Markets
Make time to do a proper analysis of the markets you are considering. Every country is different and some concepts work better in one country and not in another. Look for existing brands that are similar to yours and analyse their presence and success in the target country.
Specialist Assistance
It’s wise to talk to an international franchise consultant. They have the benefit of experience from dealing with exporting of a franchise concept to international markets and can therefore provide invaluable help and advice. Each country often has its own set of rules as to what is required to set up a franchise so its important to have someone on board that knows the market and regulations for the country you are thinking of entering.
Master Franchise into Europe – the London Gateway
Nick Strong
If you are considering new markets to expand into, the UK and mainland Europe is an obvious choice. With a history of stable economies and franchising success it represents one of the lower risk opportunities for growth.
There are of course differences across the region in areas such as language, culture, law and franchising practice, but a coordinated approach using our expertise and UK base as your European hub will help overcome these challenges.
THE CHALLENGE
International franchising is a high risk / high reward path to tread. A wrong move can have obvious financial consequences and cause long term damage to your brand. On the other hand, a well planned and executed strategy can bring great success. But where should you start?
THE FIRST STEP
London is a recognised gateway into the UK and all European markets. The International Franchising Centre provides a Gateway Fact Finding and Launch Workshop that prepares franchisors for the first step to a properly researched and planned European master franchising strategy. This intensive three day workshop brings together information from all of the relevant fields and will quickly help you decide if, where and how you might franchise into Europe.
The workshop is a combination of seminars, expert speakers and case studies designed to impart a lot of information to you in a short time. This means:
- You get the relevant facts from reliable sources on the ground
- You save time and money on long distance research
- You learn the “Must Do” things that increase the chances of success
- You learn the “Avoid At All Cost” pit falls that lead to expensive mistakes
- You will come away having developed the outline of a plan for European expansion
THE NEXT STEPS
Having done the workshop, whatever your timescales you will now have the information required to make informed decisions. We will remain your point of contact and can work with you in a number of ways to achieve your goals. And if for a period all you require is occasional conversations with us while you are deciding on your best course of action, fine. We’re here for you to talk to until you are ready to move.
Tags: franchise development, franchise growth, international business, International Franchising, nick strong
International Franchise Development Report
Nick Strong - Franchise recruitment advisor
One of the key proven ways for business to grow beyond its borders is via the master franchise route. However, franchise businesses looking to expand overseas should be aware that professional advice should be sought.
There are a number of levels that need to be addressed in preparation before direct action is taken. Best advice from in county professionals will help remove barriers to entry and expedite proven business models to deliver “public” goods and services profitably.
A new report describing franchising as an instrument of international development will be officially released December 8 in Washington, D.C. by Dalberg Global Development Advisors. The study, funded by a grant from the John Templeton Foundation, was conducted to explore successful franchise models in frontier markets and the factors critical to their success.
The report identifies that among the most promising, and neglected, enterprise models in frontier markets is franchising. In the developed world, it has been suggested that franchise business models are designed for exponential growth and offer lower failure rates, lower capital requirements for growth and structured business models that leverage entrepreneurial talent and consistency of product/service quality.
The International Franchising Centre helps franchise business develop in new markets and hold specialist expo events to prepare businesses for that purpose. Meet our specialist consultants at the ExCel International Franchise Exhibition in London and at the International Franchise Association Convention in San Antonio.
