International franchising can be lucrative if done right. However, it comes with risks but provided your global franchising strategy is well thought through, there’s no cause for alarm.
Developing an excellent international franchising strategy requires effort and dedication to succeed. You’ll need to know whether your products are in demand in the target market. That means hiring experts to perform various tasks on your behalfs, such as market research, workforce recruitment, and legal research.
International Franchising Explained
International franchising is a business model used by successful businesses to expand in other countries. This model works similarly to domestic franchising. A franchisee acquires the right to operate a business using the franchisor’s trademark, copying the franchisor’s style of operation, systems, and processes.
International franchising is based on the same concept, only that the franchisee is in a different country. The business model facilitates global expansion without physically opening new outlets overseas. Still, instead, the franchisor transfers the duty of opening and running a new outlet to a franchisee based in the target country. But how can you succeed in international franchising?
International Franchising Strategy
A successful international franchising strategy involves:
Recruiting a qualified franchisee is key to the success of your business. You can contact a franchising lawyer because they work with experts who can help with the initial establishment of new outlets in foreign countries or markets, including franchisee recruitment.
An ideal franchisee must have a proven track record in operating a business similar to yours and should be well connected in the target market, jurisdiction, or country. You can hire a recruitment bureau to help with the recruitment process and hopefully attract an ideal candidate.
Identifying the correct market will require extensive market research or a feasibility study. The market research will provide insights into product demand, and market competition, among others. You’ll be able to know whether the market is flooded or not and make an informed decision.
You must have a person who understands the law, particularly on franchising, in the target country to avoid run-ins with the law. The laws on employment, trademark, taxation, and more, in the target country might differ from what you’re used to–meaning you might need the help of a legal expert in the target country.
It’s essential to train the franchisee during the initial stages of establishing a franchise. The franchisee may be qualified but unfamiliar with your business style. Once you train the franchisee, they can train subsequent franchisees when the business grows and news outlets are opened later. Besides training, you must constantly check out the new franchisee to help if there are any challenges or support needs.
The international franchising strategy adopted is key to the success of your brand in the global market, and that’s why you should seek the help of a franchising expert if you’re considering expanding in the worldwide market.
