Even with all the perks joining an American system brings, there
may be times, like during wars or political conflicts, where other
issues arise. How has America's war on terrorism affected the
momentum of international franchising? Many franchises are not
retrenching, but rather, making sure their global franchisees
identify themselves to customers as local. "These companies
are locally based. They carry the American brand, but they're a
local corporation with local employees, local owners, and
that's something that has to be reinforced these days,"
Portmann says.
This can be done through regional advertising and awareness
campaigns. "We've seen examples, especially in the Middle
East, where the owners of a particular American brand put a banner
outside their store saying, 'This store is owned by Mr.
So-and-So,' and put a picture in the restaurant of the owner
with his family," Portmann says.
Baskin-Robbins, for one, encourages franchisees to present
themselves as local entrepreneurs. "We like licensees to
communicate to the publice as clearly and as often as they can that
they are involved with their local community and they are, in fact,
local citizens who just happen to own a license for an American
brand," Kendzior says.
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Holiday Inn, on the other hand, does not feel the need to
distinguish its franchises as locally owned. Particularly in
Europe, customers "see the sign that says, 'This hotel is
owned and operated by...,' but they're not interested.
They're coming there more for the Holiday Inn brand," van
der Spek says.
Whether they know, or care, that a business is locally operated,
international customers have different needs than their American
counterparts. Franchisors are often willing to help franchisees
meet those needs by allowing them flexibility with product offering
and design. "Franchising has always been very open to the
adaptation of menus and services to the local culture,"
Portmann says.
The Athlete's Foot, an athletic footwear retailer, deals
with the needs of its customers in 50 countries. How does it manage
to be so successful in such a wide range of locations? "We
apply a cultural sensitivity and local knowledge to a particulart
market, to tailor a solution that is most beneficial for that
market," says CEO and president Robert Corliss. The company
uses those principles to guide its decisions in everything from
shipping costs to shoe sizing.
Even in an economic downturn, local entrepreneurs and U.S.
franchisors are seeing the benefits of international franchising.
But will the global expansion last? Insiders are confident that
we'll see sustained growth.
"It's hard to say exactly what's going to happen,
because [the effects of September 11] are all too fresh," says
van der Spek, "but my gut feeling and my experience tell me we
clearly will have more franchised hotels 18 months from now than we
anticipated."
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