This story appears in the
March 2001 issue of
Entrepreneur.
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Ever dream of expanding your franchise into Egypt . . . Italy .
. . everywhere? Or maybe you're a franchisee who needs to
convince your franchisor the global marketplace is ripe for the
taking?
Until recently, the costs of taking a franchise international
were too high for many. Enter the Overseas Private Investment
Corporation (OPIC), a government agency helping U.S. companies
invest in the emerging markets of 140 countries.
"We're trying to help U.S. businesses, but by helping
them, we're also helping the development of [other]
countries," says Larry Spinelli, OPIC director of
communications.
OPIC provides companies with political risk insurance and
long-term loans. Insurance covers anything from damage sustained
during civil unrest to government seizure of assets. OPIC loans of
$250,000 to $200 million can be taken out to cover the cost of
expansion projects. Any franchisor with annual sales of less than
$250 million can apply.
To get started, Spinelli recommends first visiting www.opic.gov, where you can view the loan
application and find out what information OPIC needs.
Interested franchisors can also discuss expansion projects with
Abed Tarbush, a business development manager with OPIC
(202-336-8632). OPIC is glad to lend a hand to many of these
businesses. "Often big franchisors are in a situation to
provide financing for local franchisees, whereas the small-business
guys aren't always in a position to do that," Spinelli
explains. "Now OPIC can help them play that role. We're
very excited about that."
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