08 Sep, 2017

Franchise Opportunities International

Franchise opportunities international As globalization plays an increasingly prominent role in the world economy, businesses are actively seeking to expand their operations abroad. The rise of franchise operations in countries such as China and India is sending a strong signal to long-established franchises and newly-established franchises alike that franchise opportunities international is here to stay. Fifteen years ago, relatively few franchisors were operating internationally, and the ones that had gone international were typically the very large ones. By early 2011, 32 percent of the franchise units operated by the top 200 franchisors in the United States were located outside of the U.S. That percentage represents a 33 percent jump in the number of international units operated by those franchisors over the previous 10 years. Where Franchising is Growing Internationally The U.S. Department of Commerce estimates that franchise opportunities international over 75 percent of the expected growth in the world's trade over the next two decades will come from developing countries, specifically emerging markets. Eighty percent of the world's population lives in these emerging markets, but they currently only combine for an estimated 25 percent of the world’s gross domestic product. Although they are becoming more financially-sound and developing a stronger middle class, these countries still haven’t been cultivated by a high number of franchisors. Consequently, hopeful entrepreneurs within these countries are generally eager to learn business principles through the methods and procedures franchisors have to offer. Items to be Considered When a franchise decides to expand into a different country, it is imperative that the franchisor take into consideration all aspects of the area they are targeting, including the economic, political and social climate. Important considerations include whether or not resources and capital are available to the target group of qualified potential franchisees, the possibility of supply-chain issues such as availability of fuel or other necessities required to run the franchise, and assessments of the political climate of the region. The future of this region, including the possibility of political instability or a rise in regulations that hamper franchise growth, must be taken into account as well. While common attributes of U.S. legal concepts are finding their way into more international contracts, it is still important for franchisors to heed the culture, and more specifically the business environment, of the market they are entering. There are many countries where people are likely to conduct franchise opportunities international on their personal relationships instead of relying on contractual obligations. This is especially true in Latin American countries as well as China.