What Franchisors Need to Know Prior to International Expansion

In an article published on Entrepreneur.com, iFranchise Group senior consultant, Emiliano Jöcker advises that franchisors should avoid rushing into international expansion, and that conducting thorough research and laying a solid foundation is crucial for successful growth in new markets.

He provides key considerations for franchisors before expanding their franchises internationally, including ensuring that the brand and concept are thoroughly developed, that intellectual property is registered and trademarked, that marketing materials and manuals are translated, and that local resources in the target market are identified to assist with launching and troubleshooting.

Franchisors seeking to expand into international markets should also engage with franchising and legal experts who specialize in international franchising and who are familiar with the targeted countries’ laws, regulations, and political and business climate. In fact, Jöcker notes, before embarking on an international program, these types of experts can help franchisors choose the best countries or regions for expansion.

Other factors to consider when expanding globally include:

• The political and economic climate in the target county.
• The country’s franchise regulations or laws.
• The ability to bring products into the country.
• The ability to bring funds out of the country.
• The partners and structure chosen to operate the brand in the country, i.e., selecting the right Master Franchisee.

Jöcker also discusses the most commonly targeted countries for U.S. franchisors’ expansion, the tools that can be leveraged to aid in the expansion efforts, as well as the importance of the “human touch” in business growth. In the end, he notes, successful expansion comes with hard work. This hard work should be supported by a team of experts, whether internal and external to the franchisor organization, to effectively implement an international expansion plan.