Franchising: can I take my brand oversea?

When should I seriously look at taking my brand overseas? Isn’t it only for well-established brands?

I have been asked these questions so many times, but the truth is… there are no set rules on this!

Sure, years ago it was only established brands contemplating this route, but the explosion in Food & Beverage industry and the internet has changed this drastically.

A strong internet and social media presence means a far wider reach for any business. This makes all sorts of markets all around the world now accessible and brands more easily recognisable, as well as adapting to local requirements.

UK restaurant brands – which is obviously my sector - are always in demand by oversea investors, particularly the Middle East.

However, the market is not what it was a few years ago: some of the dynamics have changed. If you have a business that you are franchising in the UK, then there is nothing stopping your from looking at expanding oversea. Trust me: it isn’t as complicated as it may first seem.

First things first:

The better your company digital footprint, the better for your franchising opportunities. Make sure your social media and website are up to date and active with fresh content.

Do not underestimate the reach of LinkedIn: connect with people in the sector you’re in, but also those that are active investors within the overseas markets that you are looking to break into.

Get yourself an experienced franchise consultant that specialises in overseas and has a good contact list within your chosen market. They will help you adapt your UK documentation and brochure to an international outlook.

There are various ways to franchise oversea. Single stores are unusual and not cost effective in most instances.

Here are a few options to consider:

-A partnership 

-A joint venture

-A development franchise

-A master franchise

These are great options and something that I will discuss in my podcast ‘The Franchise Entrepreneur’, which I will release in early February.

If we take the Middle East as an example, the market has changed: more localised brands have been established, especially places like Turkey that have been prepared to enter the market at much reduced fee structures and initial licence fees. This has had the effect of over provision within the market. The Dubai market is particularly affected.

It is very important that your fee structure recognises these localised market differences.

A few years ago investors were prepared to pay big initial upfront fees for the rights to brands, but now there is an understandable reluctance to pay these upfront fees. Instead, they are likely to commit to more of a pay as you go structure with minimal amounts down.

The great thing about overseas franchising is once the initial training and setup is done particularly with a Master Franchise agreement you get to sit back and let them take responsibility to grow your brand in the local market and if your cute with your negotiating your get a couple of all expenses paid trips a year thrown in!

All this and more will be discussed in my next podcast, so make sure you follow me to find out more on franchising overseas.