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International Franchising

Insights from Nick Carnes

Thinking of taking your business overseas? Even the most experienced entrepreneurs can often be blinded by the allure of international markets. Nick Carnes, Founder and Managing Partner of PartnerWise Franchise, sheds light on the complex but rewarding business of international franchising, and for those considering expanding their franchise further.

Launching international expansion is not just a test of a brand’s global appeal but a rigorous assessment of its operational backbone. Growth at the international level requires a substantial investment of time, effort, resources and planning. It is important to determine whether the move is motivated by vanity or strategic judgment. Is your home market fully capitalised? Is your business operationally and financially strong enough to bear international expansion?

Below are the most important considerations for franchises considering the leap overseas:

Operational readiness: Determine whether your current system from supply chain to support system can handle additional stress or needs to change. What could distractions mean for your business in the long run?

Impact on current franchisees: Consider how the expansion may affect existing franchisees and their business metrics.

Economic implications: Compare your international earning potential and profitability to your UK operations depending on how you enter the market.

Market research: Conduct thorough research to ensure your brand resonates in new markets by understanding competitors and cultural nuances.

Choosing the right partner: Screen potential partners carefully to understand their motivations and capabilities. Remember to factor in international travel for the approval process and taking into consideration that not all will become a franchisee.

Local compliance and legality: Ensuring any tech can be replicated and supported overseas and if there is any GDPR implications involved. Some countries may also require a JV if a local resident is required as a part business owner. You may also need to produce Franchise Disclosure Documents as you will most likely be entering a regulated market.

Local laws: If you are using English law, all agreements will need to be checked to ensure no local laws are breached, partnering with a local lawyer is best practise here.

Trademark protection: Secure your trademarks prior to expansion to safeguard your brand.

Along with the above key considerations you will need to consider other aspects such as time zones, local laws, currency and supply chain availability.

If you would like to find out more about international franchising please feel free to email Nick direct: [email protected]