In the weeks following September 11, threats of war and
recession were weighing heavy on the world. But while belts were
tightening and employees were being laid off, Arie van der
Spek's phone was ringing. People wanted to find out how to join
his franchise. "More people are calling us up, interested in
documentation or preliminary conversation," says van der Spek,
senior vice president and chief quality officer for operations in
Africa, Europe and the Middle East at Holiday Inn's parent
company, Six Continents PLC.
Many of the people calling van der Spek's office were hotel
owners interested in converting to Holiday Inn, one of the
company's brands. "Some are pretty nervous, because they
are unbranded, do not belong to an international hotel group and
are now looking for affiliation," he says. "I'm
actually reallocating some resources to see if we can
benefit."
When the United States was involved in the Gulf War, van der
Spek saw a similar spike in interest. "At that time, we were
opening around 55 hotels a year [in Africa, Europe and the Middle
East], up from around 35 hotels a year," he says. "So
that was clearly a major success for us."
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The popularity of franchising internationally makes sense. As
the world gets smaller, local brands become globally recognizable.
"People come to the U.S. on vacation, see something they like
and want to take it back to their country," explains Marcel
Portmann, vice president of emerging markets and global development
for the International Franchise Assocation.
Meanwhile, saturated local markets are forcing U.S. companies to
expand elsewhere. "It's a good time [for franchises] to
expand internationally," says Portmann, "especially if
they're facing a very saturated or competitive market here in
the United States."
If American companies are, in fact, continuing to expand
internationally, how does that benefit global entrepreneurs
interested in buying a franchise? "The consumer perception
gives the international franchisee a better base to start with, as
many American brands enjoy universal brand recognition," says
Bob Kendzior, vice president of international marketing and retail
concepts for Allied Domecq Quick Service Restaurants, franchisor of
Baskin-Robbins, Dunkin' Donuts and Togo's. "Any
international franchisee who chooses to import one of those brands
will usually find it to be a better start-up opportunity than a
homegrown brand."
Van der Spek agrees that U.S. franchises offer many advantages.
"Since there's hardly any experience of franchising
outside the Americas," he says.
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