Pip Wilkins, chief executive, bfa
The year of going global for franchises Whether you’re expanding beyond British shores or bringing an overseas franchise to the UK, the international opportunity is too big to pass up on Many entrepreneurs choose franchising as their model when they’re ready to expand. The structure, whereby local business owners can benefit from economies of scale as well as access a proven system, support and branding, is very appealing. In the UK, a number of successful brands from abroad have established themselves here through franchising, such as Home Instead Senior Care and McDonald’s, along with countless other familiar names on the high street. These businesses are boosting the British economy and creating jobs. Similarly, a lot of British companies like VIP Bin Cleaning and Water Babies chosen a franchising model when expanding into foreign markets. Even companies like Marks & Spencer that don’t franchise at home use franchising
you on a local level, as well as how easy it will be to meet with and support them before – and after – buying the franchise. It’s also worth looking into whether there could be any language barriers that might make collaboration harder. On a broader level, you should check that the overseas franchise team understands the UK market in terms of its culture, laws and demand patterns. You may find that you have an opportunity to look at becoming a master franchisee, which means model when venturing into overseas you’ll be acting as a franchisor for a territories. defined area. Some master franchisee When you’re exploring the contracts can even cover the entire possibility of taking on an country. Again you’ll international need to fully understand franchise, you You should make sure the commitments, need to do the overseas franchise structure, timescales thorough research team understands the and costs involved. on the company. UK market in terms of Finally, if a franchise If it’s only recently the culture, laws and hasn’t got any presence entered the UK demand patterns in the UK yet then market, this step you should look into is even more their reputation abroad and whether important. Communication with the they’re an accredited member of the franchisor and head office is key, so official franchise association in their if you’re dealing with an overseas home country. franchise you need to know if your Ultimately, there’s a huge number point of contact will be based in the of opportunities to bring an UK or abroad. This is important overseas franchise to the UK or use because if you’re dealing with a headfranchising to make your mark in office contact in another country, you another country. So here’s to a year of need to have a good understanding global growth for franchising. of how they might be able to support January 2017 | elitefranchise
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23/12/2016 15:18