Maintaining Brand Identity While Adapting to International Markets

Expanding a franchise internationally is an exciting opportunity, but it comes with significant challenges. The key to success lies in maintaining your brand identity while being flexible enough to adapt to local markets, and to know which markets are a good fit for your brand. Having developed in 52 countries and visited 132 for consideration, I’ve seen firsthand how brands can thrive, or fail, when entering new territories. 

Before franchise brands go global there are some critical boxes to be checked.

Identifying the right market for expansion

Before moving into a new country, a thorough assessment is essential. Several factors determine whether a foreign market will work for your franchise:

• Financial viability: Can you legally and efficiently receive royalties from that country? Some nations have strict regulations on money transfers, making it difficult to receive earnings. If transferring funds is an issue, the market may not be sustainable.

• Legal considerations: Protecting your trademark is crucial. Every country has different laws regarding intellectual property, and securing brand trademarks should be a top priority before entering the market.

• Safety and security: If a country poses travel risks, it may not be worth expanding there. Franchise teams will spend significant time in the new market, so ensuring their safety is non-negotiable.

• Product acceptance and import restrictions: For food brands, does your menu align with local tastes? What are the import regulations? Many countries, like Canada and the UK, have strict rules on GMOs and food ingredients that could impact your supply chain if you can’t be flexible on ingredients and certain menu items.

Balancing brand identity with market adaptation

While a franchise’s core identity should remain intact, flexibility is necessary for success in international markets. Here are important considerations I have discovered in the restaurant industry:

• Menu adjustments: While keeping a core menu is important, localized items can enhance the brand’s appeal. For example, in the Philippines, I learned pasta is a must-have, while in the UK, coffee is an expectation. However, some items may need to be removed. For instance, at Captain D’s we will remove catfish and green beans from our UK menu because they do not resonate with local consumers.

• Alcohol considerations: In some countries, alcohol is integral to dining culture. A full bar or beer offerings may be necessary to meet customer expectations. If this is a non-starter for your brand, you may need to adjust your plans.

• Cultural sensitivity in design: You have put a lot of thought, creativity, and resources into the look and feel of the brand but understand the restaurant’s ambiance may need adjustments in another country. A brand known for its coastal vibe in the U.S. may need to tone down bright colors and kitschy characters in favor of more muted tones in certain markets to fit local aesthetics.

• Showing respect for local culture: While maintaining a U.S. brand presence, demonstrating appreciation for the host country’s customs and culture is key to gaining consumer trust and loyalty.

Having the right team

International success requires people who understand global markets, cultural nuances, and are willing to travel extensively. A successful domestic development executive is not necessarily suited for international expansion, so hiring experts with global experience is crucial.

Equally important is selecting the right master franchisee, someone who understands and will embrace your brand identity and help you adapt to the local culture. Here are a few other key priorities to keep in mind:

• Operational strength over financial backing: A potential franchisee may have money, but if they lack strong operational capabilities, the brand will struggle. A weak franchisee can damage your brand’s reputation and chances of succeeding in that country.

• Face-to-face time is key: Do not finalize a partnership without meeting in both the U.S. and their home country. Seeing their operations firsthand is invaluable. I have walked away from deals after discovering concerning issues that I only would have picked up on after spending time together in person.

International franchising is a rewarding but complex endeavor. Brands must strike a balance between staying true to their identity and adapting to new cultural and market conditions. With careful planning, strong legal and financial groundwork, and the right local partners, franchises can successfully navigate the global landscape and build a lasting international presence.

Hair Parra is the SVP of international operations and development with Captain D’s.