Franchising is no exception when it comes to the growing trend of globalization. No matter where you go, it’s likely you’ll find a familiar brand. Thinking about joining the trend? Read on.
WHY GO GLOBAL?
- When business people and tourists travel, a familiar franchise can be a comforting respite from the exotic local options.
- Web and multimedia marketing makes it possible to reach a global audience, boosting brand recognition worldwide.
- Some areas have reached a growth saturation point in the domestic market. That is, there’s a there’s a popular chain on every corner. If the company is still growing, they might cross borders to find more corners.
- Pioneer a new market. If you want franchise support while also embarking on an adventure of experimenting to help increase success, you might consider a big move.
Going international, without a doubt, is quite appealing. However, it’s not without challenges, so hold off on the plane reservations until you’ve assessed the outlook.
ARE YOU READY?
To answer this question, the following need to be looked into;
1. Existence of a ready market in destination country
Is there a ready market for my product in my preferred destination? How big is this market? How readily will they accept my product? How stiff is the competition, if any.
To answer this question, a lot of research will need to be conducted. Preferably, visit the destination for a more up close and personal review.
2. Assess your company
Does my company have the financial and structural capability to deal with international franchising? If the company can break ground elsewhere without faltering in the domestic market, then it may be okay to go global.
3. Market compatibility
Does the destination market work the same way as the domestic one? Are there unique legal, infrastructural, geographical, or cultural considerations that may affect my business? Am I prepared to face those unique challenges?
4. Franchise Format
It is important to distinguish the kind of franchise you intend to use in your destination. This decision will be determined by the parent company, but you may have a couple of options. Ask about the anticipated benefits and challenges of opening different types of locations.
5. Strategic location
This will deal with the actual positioning of the franchise in the destination. Have I conducted research on the ideal positioning? It should be centralized in the target market to maximize productivity.
6. Market entry strategy
What is my plan to break into the market? Am I conversant with the leading marketing strategies in my destination? How will the franchise corporation support operations in my unique location?
Do you think your franchising dream might be on distant shores? If the answer is yes, contact us to learn more about opportunities to venture into franchising.
©2017 Kahala Franchising, L.L.C. All rights reserved. The information provided herein is for informational purposes only and is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise; nor is it directed to the residents of any particular jurisdiction within the U.S. or elsewhere. The following states currently regulate the offer and sale of franchises: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, and WI. If you are a resident of one of these states, or of a jurisdiction that has similar requirements, we will not offer you a franchise until we have completed the applicable registration or obtained the exemption from registration, and completed the applicable disclosure requirements. Regardless of what state you reside in, an offering can only be made by a franchise disclosure document.