International

An international presence can add prestige to a brand, instill pride in employees and franchisees, and add to a company's bottom line. For franchisors going international, selecting the right markets and franchisees will greatly improve their chances of success. If not carried out correctly, however, this can also be a costly drain on a company's time, energy, and money.

By now, bitcoin has become a household word. The idea of a digital, unregulated "cryptocurrency" elicits strong responses. Some have heralded bitcoin as revolutionary. Others, such as JPMorgan Chase CEO Jamie Dimon, denounced it as a "fraud." But in January of this year, Dimon walked that comment back, and declared, “The blockchain is real.” Why the change?

China is hot, as is much of Asia. So is Latin America. Hot for what? For expansion-minded U.S. franchise brands seeking growth opportunities. In a trend that accelerated with the onset of the Great Recession, U.S. franchisors have been looking overseas with greater focus for the past three-plus years.

As the American economy staggered in the last few years of the 21st century's first decade, many U.S.-based franchisors began to search for growth opportunities overseas, casting a serious eye at international expansion. And from overseas, foreign-based franchisors saw depressed U.S. real estate prices and increased availability of prime locations as an opportunity to penetrate the U.S. market and establish a beachhead with American consumers.

Spanish Franchise Association GM Eduardo Abadia talks about franchising in Spain. The Spanish franchise market is healthy, growing, and receptive to new brands. But Abadia says there are some key guidelines that franchise brands must consider when coming to Spain.

Thinking international? Here's how to choose the best countries for your brand

In 2015, I reported on the increasing use of technology in international franchising. Today, technology has become even more essential to the operation of franchised businesses around the world.

Europe is a ripe market for U.S. brands - if they know what they're doing.

When I first went to China in late 1982 there were no foreign brands operating in the country, and everyone wore Mao jackets and rode a bicycle. The term "middle-class consumer" did not apply. People shopped at government-owned stores and street vendors.

If you feel like a car doing a burnout in your current job and are dreaming of being your own boss, investing in an automotive franchise may be just the ticket.

After years of pursuing single-unit operators, Massage Envy is shifting to multi-unit recruitment

Going international? So are we! This past December, Franchise Update Media co-produced its first conference in Europe, partnering with the Best Franchisee of the World.

For U.S. franchisors, the domestic market can be highly competitive. From small businesses to large corporations, U.S. companies are turning their attention to markets abroad and the opportunity for growth overseas.

Now, more than ever, is the time for every franchisor to look at opportunities to expand its system outside the United States. A bold statement, especially coming from a lawyer who, for the past 27 years, has cautioned clients and employers against moving too quickly outside the U.S. when the brand hasn't yet been fully exploited within the U.S.

Taking a franchise brand international is, in a sense, the final frontier for growth. It's where many franchise brands that have begun - and been successful - in the U.S turn when they seek expansion. It's a strategy that often occurs in part because of growth that has saturated domestic markets and territories. Typically, larger more established franchise brands begin looking across borders for untapped markets and potential growth. It's an expansion strategy that's not new. But during the past couple of decades as franchising has continued to grow as a popular business model, the international growth strategy has been on the rise. International franchising can also provide opportunities for new and existing franchisees looking for expansion options. There are opportunities as near as Mexico and Canada and as far as the Middle East. In one sense, international franchising can be a relatively smooth and easy process. After all, the franchise concept is built around infrastructure, simplicity, replication, and streamlined operations. What works in one place generally works in another. And many international markets are wide open and untapped and offer enormous potential for franchisors - with the right products, services, and business culture.

The evolution of franchising over the past 20 years has, of course, affected franchise executive recruitment. Executives at all levels are better educated today than they were in 1987, more sophisticated in their outlook and approach. The shift from founders to professional management teams, the effect of the Internet, the entrance of private equity, and new compensation schemes, taken together, have had a profound effect on the search business.

What was happening in the franchisor community? The Italian legislature had proposed that no franchisor be allowed to offer franchises in Italy unless it had a history of operating at least two units in the country before it began franchising. Ultimately, Italy adopted a more flexible experience standard. Then China adopted a two-unit, one year of experience standard as a precondition for franchising there in its 2004 Franchise Measures.

For many years--like the ancient bones of "Lucy" discovered by Donald Johanson in 1974 and long thought to be mankind's first ancestor--Albert Singer, who founded the Singer Sewing Machine Company in 1851, has been credited with being the first franchisor in the United States. The designation was likely given because his was the most recognized name of the early pioneers that people still remembered.

When Linda Burzynski was offered the CEO slot at Liberty Fitness, the franchising veteran says she hesitated, in part because she didn't feel she was in the best shape, physically, to head up a health and fitness organization.