Building on local success- is your next move overseas?
Franchising is an excellent way to expand internationally. It is an affordable way of accelerating growth, achieving development goals more quickly and with far less risk. Franchising provides the widest entrepreneurial opportunities for you and your franchise partner overseas. The mutually beneficial relationship you build together makes this a unique way to do business internationally.
What is International Franchising?
International franchising is literally being in business overseas but not by yourself. You expand overseas using overseas franchisees that provide in-depth local knowledge and on-the-spot assistance. They combine knowledge and resources with entrepreneurial drive and spirit to form and unique business relationship with you in your chosen market.
The principle is simple. Instead of exporting direct or selling through overseas agents, you grant a license to others to sell your product or service. Your license entitles your overseas franchisee to trade under your trade mark/trade name and make use of an entire package from you, comprising all the elements necessary to establish the business overseas and to run it with continual assistance from you.
Overseas franchising offers clear advantages:
- It requires less investment so there is less risk
- You get immediate access to loyal local support
- Your tried and tested business ideas are used more widely
International Franchise Models
There are two main models when franchising internationally:
- Master Franchise: You appoint a single master franchisee for each country. The master franchisee will use their local knowledge to recruit, train and support unit franchisees within their country.
- Unit Franchise: The franchisor will recruit, train and support unit franchisees in each country.