Six Tips for Taking Your Franchise Global Is your goal world domination? Here's advice on how to make your business concept a success outside the U.S.

entrepreneur daily

"International expansion is not for the faint of heart," warns Mark Siebert, founder and CEO of franchise consulting firm iFranchise Group. "It's for companies who are really committed to it." Here, Siebert offers his advice on how to make your concept a success outside the U.S.

1. Make sure you have the resources to support international expansion. Leads from foreign countries can be tempting, but don't rush in. It requires time, effort, people and capital to successfully transition a domestic franchise to an international market.

2. Choose which international market to expand into. That's right--market, not markets. "Going into a foreign market is a significant endeavor," Siebert says. "Don't go into multiple markets at once. Choose one or two at most to focus on in the short term." There are a number of different factors to consider in choosing which markets to target, including time zones, language, laws, customs and competitors.

3. Decide on the structure for your international franchising. The two main options to consider are master franchising and area development. A master franchisee is granted the right to sell franchises in their area. This model works well in markets with large middle classes and a high acceptance of franchising, but it also requires you to train the person not only to be a franchisee but a franchisor. Alternately, area development deals offer a single operator the right to open multiple locations themselves. You'll also need to decide what types of franchise fees and royalties you'll charge, and what development schedules you'll require.

4. Find your master franchisee or area developer. "Don't just rely on random encounters over the internet," Siebert says. "Go to the market and seek out the best person." In your search for the candidates, you can get assistance through the Department of Commerce's Gold Key Matching Service, attend franchise trade shows and expos in your chosen market, or enlist the aid of a development company that specializes in helping businesses go international. And always do your due diligence before making a deal.

5. Adapt. If you want your franchise to succeed internationally, chances are you'll have to make some changes to your business model. Develop a prototype and figure out what those changes are. You might need to change the products or services you offer, adjust how you advertise, make adaptations to the equipment you use or even change the name your business goes by. Naked Pizza, for example, opened its first international location this year in Dubai, United Arab Emirates--under the name N_K_D Pizza, out of respect for the culture.

6. Expand. Once you've made all of the necessary adaptations to make your prototype a success, it's time for your journey into international franchising to really begin.

Editor's Pick

Related Topics

Social Media

With This LinkedIn Algorithm Change, Your Best Posts Could Reach New Readers for Years

It's one of many new features rolling out on the platform in 2024.

Travel

Save Big on Airfare with a Dollar Flight Club Subscription for Less Than $60

This discounted Dollar Flight Club subscription can turn dream trips into reality.

Living

The CEO of Catholic Prayer and Meditation App Hallow Says Founders Need to Be Part of Something Bigger Than Themselves

On this episode of "The CEO Series," learn about the soulful journey of Hallow's CEO and founder Alex Jones.

Growing a Business

5 AI Hacks You Need to Know About in 2024

Despite its vast potential, the key to leveraging AI effectively lies in balancing automation with human oversight to avoid pitfalls and ensure that creativity and decision-making remain human-driven.

Money & Finance

How to Know If Your Business Is Profitable This Very Second

It's important to periodically take stock of your business status, but don't wait until the end of the quarter or Tax Day to know. Too many decisions you need to make depend on your profitability. Here are things you should be doing regularly so that when you need to know where you stand, you know.

Side Hustle

20 Side Hustle Ideas for Summer 2024: Part One

Instead of spending money this summer, prepare now to make extra cash through the following side hustles while still enjoying your free time.