08 Sep, 2017

International Franchise

There is an excellent thing about international franchise – it helps companies and brands get global footprint. Even simple sounding bakery brands got global fame through international franchise and they actually managed to maintain a certain degree of their home-grown authenticity. But before you hit the international franchise route, there’re some questions all small business managers should answer in the first place. Which market is right for the small business you are running? This is the first and foremost question to be answered by the business owner. You need to target the right territories and countries. You need to also figure out which ones can make the most sense? If you have already got queries from some interested parties (e.g. Magnolia’s intl. enthusiasts), you might have actually found a suitable location that is worth scouting. To tell the truth, the local interest remains a great indicator of where the concept will work. And do not forget to pay due attention to the leads that come from a country. To get success with international franchise opportunities, you need to dig deeper. You need to understand how an international supply chain is to be managed. When you have managed to determine where, your next job will be to examine the consumption levels of the products locally. Also try to find the potentials of the competitors. If there’s any competition within a country, this shows that there is demand. The second question is - who should be hired? If you are serious about going international, you’ll need one / two people in the domestic base who are 100% dedicated to the international expansion and operations. But it isn’t just the local team that requires a careful selection. You need full fledged support from the foreign team as well to succeed. Culturally, geographically as well as from a capital/finance perspective, it is more or less impossible to go global and comprehend the market correctly. You will need to find the right franchisee well aware of the local market. How can the brand be protected? This is the third question. No not allow the franchisee to spoil the brand image by delivering poor product or service. The fourth and final question is about how you can thoroughly customize your business to cater to the needs of the foreign market. Keeping all these things under consideration will help you succeed with your international franchise quest.