Expanding business through the International Franchising model is the best way to increase the customer base and grow sales. But it is a complex process that has to be done perfectly to achieve success.
First, you will need to decide the Franchise Model you would like to follow. Master franchise and Regional franchise are the two most common models which are followed to expand globally.
In the Master Franchise model, the entrepreneur you choose will have all the rights to start and run several businesses in the specified country under your brand name. In simple terms, the master franchisee will be the Franchisor in that country.
The regional Franchise model is adopted when countries are too big for a single master franchisee to maintain all the units. Here the country will be divided into regions and each region will have a “mini-master franchise” who has all the power to several businesses under your brand name.
You need to decide which model is suitable for your business, do your research work, and talk to experts in global franchisingbefore you make a decision.
Legal Aspects Of Navigation:
Each country will have a specific franchise law, which you need to follow to set up a franchise business. Figure out all the laws and fully understand it, you might need to take help from an International franchise lawyer to make sure you are not making any mistakes.Here are a few factors you should know:
Disclosure law: In most countries, there are no disclosure rules for franchise business . But few countries have robust ones, which you need to abide by.
Competition law: Most of the International franchise Agreements are subjected to competition law. Get to know about it and familiarise yourself or get help from a legal advisor.
Choosing the right Country to expand: The most important and tricky part is choosing the country you want to do International franchising. You need to look at many aspects before you make a decision.
Choosing the Right Candidate To franchise
Next, you need to look at the franchisees. The candidate you choose to franchise will be the key point of success in International Franchising. He/She should have a good understanding of the local market and consumer spending habits. Your future business decision might also rely on the candidate you choose. You have to be even more careful in the Master franchise model because they’ll have more control once they’ve signed the franchise agreement.
Conduct several screening processes before you choose the candidate. They should be well capable of running your business in any circumstances. Make sure they have at most knowledge about the industry and field.
Build a Franchise Operation Manual.
The operational manual is a guide to succeed in Global franchising. Your franchisees will rely on it to guide them through the day-to-day running of their business. When you are expanding your business globally, it is important to maintain a clear manual so your franchisees will have enough knowledge to run the business successfully.
You will also need to have a proper:
All the information which is provided in the document will help franchisee grow better and it will also simplify the franchisor work.
Figure Out Marketing Plan
You need to have a Marketing plan to sell franchises in order to succeed in global franchise expansion. As a franchisor you need to know, where you can effectively advertise and what marketing message will reach the target audience. For this, you need to identify prospective franchisees and implement them in your concept. Marketing plans should cover all areas like public relations, social media, print advertising, direct mail, utilization of brokers, and other referral sources.
Marketing Plan should have:
As an international franchise consulting company, Francat.co.in has assisted a few brands to establish globally. Our services include development, necessary clearance, Legal assistance, and so on. If you are interested in taking your brand globally, we would be glad to assist you in every phase of franchising.