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Advisory 2011-03-25

Franchise Gateway to Global Success

If you are exploring new horizons for expanding your well established franchise business, then overseas markets can be a good option for growth. Read on to know the various ways to expand internationally...

By Ramanjit Kaur Feature Writer

Having your business established and expanded on nationwide scale, taking the business to overseas can prove to be highly profitable. Franchising has emerged as an excellent way for business expansion on foreign land as it provides an almost cost-free expansion given that the franchisor receives franchise fee and royalties from the franchisee. Knowing the market where you as a franchisor is planning to expand you can lay down a strong foundation as a franchisor or as a trade mark owner lays down the foundation for the making of a successful franchise. As Tony White, Director, The White Connection and Regional Manager, Gloria Jean’s Coffees, Australia says, “The best time to take the business abroad is only when the franchisor feels that he has reached the saturation point or close to the saturation point in his/her own market.”  This article will be a maneuver for those franchisors who aspire to venture overseas.

Zero-in on a Particular Country

When planning to take the flight of franchising abroad, it is always recommended to zero in on a particular country, or a set of countries you are eyeing to enter into. Acquire the knowledge of the local market, consumer behaviour patterns, and the various rules, regulations and laws applicable in the country and accordingly include the various details in your franchise agreements. Besides this, there are certain other factors too that must be taken into account while venturing overseas, which are: 

  • Initial investment in developing the franchise concept 
  • Franchise training and support
  • Language bars
  • Logistics and product costs
  • Competition from local players
  • Selection of suitable franchisees

Selection of Franchisees

Out of these, selection of suitable franchisees is of utmost importance and is a difficult task too when franchising overseas. Thus, it is recommended by the franchise experts to take the help of the brokers who are specialised in international franchise development. Their know-how of the market along with their established network can help you promote your franchise business effectively and efficiently. Besides this, here are certain other ways also that a franchisor can opt for identifying and searching the opposite market to mark your presence: 

  • Advertising
  • Searching online
  • Franchise and trade shows 
  • PR agencies and
  • Direct mails

Ways to Franchise

Once you are done with all the pre-requisites of expanding overseas, next step is to get familiar with the various ways to franchise your business. These are:

  • Unit franchise: It is the simplest way of franchising under which a franchisee is given with the various proprietary and intellectual property rights to run one franchise outlet.
  • Joint Ventures: It is an advantageous mode of expansion for the franchisor that allows him to participate in the equity admiration of the foreign entity while providing it with an ongoing revenue stream, generally based on gross sales.
  • Master franchise/ Area franchise: Under this setting, a franchisee is entitled with a particular geographical area, state or country to operate the franchise business. The franchisee also has the rights to sub franchise the business further within the same area, state or country.

In addition to all this, he laws and local regulations in the targeted country must be considered cautiously as they have a direct impact on the franchisor and the success of the franchise business. In countries like Indonesia, a franchisor needs to register his franchise business under a relevant authority before getting started with the franchise operations whereas in USA, UK, stringent disclosure documents are to be complied by the franchisors. In other words, franchisors must be aware of the franchise laws of the particular country he is planning to expand into and must abide the legalities that are followed there.

So, get ready to spread your wings across the globe and cover it under your brand umbrella.

dhir derawariya 20, Oct 2010 at 09:59 AM
dear sir i have experince in controlling of house hold appliances repairing staff ihave place also and fund for starting business thanks you your dhir
mitesh bhatt 21, Oct 2010 at 12:16 AM
Hi, I am mechanical engineer, My father is cevil Engineer. I have 400sqft space in posch recidential area at Vadodra(Gujarat).I am intrested for Home care franchise.Pl. give me more details for this.
mitesh bhatt 21, Oct 2010 at 12:38 AM
Hi, Repeiring things & Machines is my hoby from child hood.I want to convert my hoby in profeshinal. I see your proposal & I like it.. I am intrested for home care framchise. I am mechanical Engineer & firts repering is my hoby. So I perform well. Pl. give commercial details.
Gaurav Seth 21, Oct 2010 at 03:16 AM
Sirs, We are havinga space of 4000 sq. ft. available vacant on main road. Kindly send us your details of franchise for our city.
Geetanjali Roy 23, Oct 2010 at 06:58 AM
I have seen your proposal and am interested to know more in detail.please send the same.
Vikram Motwani 24, Oct 2010 at 02:39 AM
i am an NRI working in hotel industry for several years. I do not have direct technical expertise, however have been working in an environment which understands importance of Customer service and handling chores professionally. There is definitely huge market out there in the cities especially for professional companies offering to do household chores. Very keen to receive info on the franchise as i am contemplating to start such venture in Mumbai.
Vivek V 24, Oct 2010 at 03:30 AM
Hi, my name is Vivek. I'm into IT and Trading business. I've 3000sq.ft of self owned commercial space available in Kerala. I'm interested in Home Care Business and I would like to take up a Home Care Business Franchise. So I request you send more information about the Home Care Business Opportunity.
pritesh 28, Oct 2010 at 07:09 AM
hi,sir i am in trading business and intrested to know more about your franchise.So i request u send more ingormation about franchise.
Vijay Pantane 29, Oct 2010 at 09:41 PM
i am interested in a franchisee for homecare services. I have experience in a similar servicing field. this is required for Mumbai.
Divyesh 01, Nov 2010 at 06:35 AM
Dear Sir, I'm looking for franchies of your company. Kindly send all the detail for further communication. Regards,
simanchal sahu 05, Nov 2010 at 02:27 PM
Dear Sir,I am looking for franchise of your company.Kindly send all the detail for further communication.Regards.
Pritesh 12, Nov 2010 at 06:24 AM
Hello sir, I am interested for home care franchise.Kindly send all detail for further communication.I am waiting for your reply.
Rakesh patel 17, Nov 2010 at 09:11 AM
pl.send me your franchise all detail.i won't start in anand(gujarat)
sudhakar 03, Feb 2011 at 11:20 AM
Hi,similar I am doing the same. If u give the detail of this I feel can go deep in this, let me know the franchise detail
SHAH NEMCHAND 03, Feb 2011 at 11:06 PM
i want to know more about is work and my role.
sanjay parekh 03, Feb 2011 at 11:11 PM
Please send me franchise all detail.
Rafiq 04, Feb 2011 at 04:57 AM
Please provide details of franchise on my email. We are interested in Indore(M.P.) area Rgds, Rafiq
kuldeep vartak 04, Feb 2011 at 10:30 PM
need more details
C Vijay Reddy 04, Feb 2011 at 10:44 PM
Hello sir, I am interested for home care franchise.Kindly send all detail for further communication.I am waiting for your reply
MANVIR SINGH 05, Feb 2011 at 11:15 PM
please send me more details on the franchising,as would be keen on knowing more...
abhijeet 06, Feb 2011 at 08:43 AM
hi, I am Abhijeet, working in construction field. Pls send me the franchise details. thank you.
md khaleel 10, Feb 2011 at 05:32 AM
I have seen your proposal and am interested to know more in detail.please send the same.
INDERJIT SINGH BADESHA 12, Feb 2011 at 06:59 AM
it is realy very 2 deficult to find a well trained plumber,electrician,every time when i used to face the problem-----i used to say this sector has a lot of potential,why some one is not starting this.and now it is like you guys read my mind,gtreat.would to to jump aboard.
dewakar 16, Feb 2011 at 08:20 AM
pls tell me wheter u provide skilled persons for the franchisee
nitin agarwal 24, Jun 2011 at 08:49 PM
I hv gone through the content nd I m very much keen to know more about this concept. I m in a planning to buy a franchisee with low investment in a very short span of time. Kindly also provide me the contact number. Revert me ASAP.
vinay pandey 01, Dec 2012 at 02:22 PM
send me detail and contact
fitness gal 10, May 2015 at 03:14 AM
The smartest move Soulcycle made was staying a Premium Service and saying no to classpass. I have run studios for years. Classpass does not work for studios. Your membership will leave you for classpass once members learn they are paying double what the others in your classes are paying. Your user base will be very angry at you. Incremental revenue is the fantasy that classpass is selling. It does not work out that way. Members abandon studios for classpass. Your loyal user base will not be happy to learn that they are paying $25 and you just sold classes to classpass at $10. You will become a $10 an hour studio and will compete with every other $10 studio around you on a per class basis for users. You will be owned by classpass.\\r\\n2 articles against Classpass in the New York Times:\\r\\n
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