What are the advantages of franchising your business internationally?

Many growing small businesses in the UK dream of growing a national brand, franchising a business has helped many achieve this over the years, but what about international expansion via franchising? Is this possible for a small business?

In a word yes. The beauty of franchising is that it can enable both rapid growth including international growth. Internationally most Franchisors ( the business that creates the franchise model ) grant what is called a Master Franchise Licence. This licence is different from a standard franchise agreement is as much that it grants rights for the Master Franchisee to operate as the Franchisior in the target country.

Each market will have differences, market trends, currency etc so thorough research by the prospective Master Franchisee and the Franchisor will be required before entering into a new international market. Once this is carried out usually it is prudent for the Master Franchisee to run it’s own franchise operation to test the market and modify the method according to local conditions. In addition to this franchise documentation such as the franchise operations manuals, franchise agreements and other legal and operational documentation will need to be changed to suit the local market and laws of that country.

Internationally franchising a business can lead to rapid global expansion of your brand, like anything in business it’s not without it’s risks but it is very achieveable even for a small business but you need the right advice before considering international expansion.

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