Most Read Contributor in United Arab Emirates, October Introduction Do you wish to establish an attractive business model to distribute goods and services globally? Does your company have a brand image in the market and hopes to expand? Do you have a unique trend and wish to generate profits?
Why Franchising Globalization of franchise Going Global By: Kerry Pipes 26, Reads Taking a franchise brand international is, in a sense, the Globalization of franchise frontier for growth. S turn when they seek expansion. Typically, larger more established franchise brands begin looking across borders for untapped markets and potential growth.
But during the past couple of decades as franchising has continued to grow as a popular business model, the international growth strategy has been on the rise.
International franchising can also provide opportunities for new and existing franchisees looking for expansion options. There are opportunities as near as Mexico and Canada and as far as the Middle East. In one sense, international franchising can be a relatively smooth and easy process.
After all, the franchise concept is built around infrastructure, simplicity, replication, and streamlined operations.
What works in one place generally works in another. And many international markets are wide open and untapped and offer enormous potential for franchisors - with the right products, services, and business culture.
Nevertheless, there are challenges for franchisors that seek expanding kingdoms in other lands - and often for the franchisees who operate the units. Franchisors look at key markers such as what kind of demand exists for their products and services in the new international market sthe initial cost of entry, sourcing supplies and related vendor issues, and whether or not it makes sense to open company and franchise units in these new territories.
Another significant factor affecting international expansion, laws often vary from country to country on small business operations and franchise licensing. It can be complicated and requires research.
Franchise representatives need to visit the countries they are considering moving into and devote time and resources to studying these cultures very carefully. One of the first questions to consider is time of entry. One school of thought says not to be the first to the market but a close second.
This way another franchisor, essentially, invests in the market research for all competitors. If the product or service flies, and the market is proved to be viable and economically attractive, then other brands, and concepts, can begin to move in. One of the most critical components of successful international franchise expansion is finding the right partners.
This is a key ingredient to long-term success and profitability for the franchise brand. Typically, a master franchisee model is employed. The franchisor contracts with a person or entity to help identify and provide services to franchisees in a specified territory anything from a whole country to a region to a city.
The master franchisee typically pays the franchisor a significant initial fee for the rights to develop the territory and then retains a portion of the initial fees and royalty fees paid over time by the individual franchisees in the territory.
The master franchisee is usually responsible for recruiting the individual franchisees and providing all training and support they need. That can include everything from basic training to all ongoing support. When correctly implemented, the master franchisee approach can result in more rapid system growth accompanied by less initial capital risk for the franchisor.
The qualified master franchisee can be the key to identifying and recruiting talented franchisees who fit the system and successfully execute the franchise concept.Globalization of Production Sourcing of goods and services from locations around the globe Benefits from national advantages in cost and quality of factors of production (labor.
capital). land. Franchise Agreement. uploaded by. Christine Bernadette Uson Cruz. C2C Franchise Kit. uploaded by. dreamzbooks. value chain. uploaded by. Sameh. If you've been thinking about buying a franchise -in the U.S. or any other country- consider this ranking of the top franchisors that are seeking international franchisees.
Franchise Direct has compiled its ranking of the Top Global Franchises. Browse the list below if you would like to learn more information about the world's most successful franchises.
Franchise Direct has compiled this list after examining franchise brands from around the world. The company granting a franchise is called the franchisor, and the person receiving the franchise is a franchisee.
The franchise relationship is governed by the franchise agreement, which outlines. Localization of Franchise Systems: Adapting Core Identities for the Global Marketplace. It is not easy but with research, diligence, creativity, and flexibility, it is possible to bring consistency and core identities to varied markets around the .
The franchising model has benefitted from the trend towards the globalization of markets henceforth; the new global panorama post adaption of franchise model is seen as an icon of western-based globalization.