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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About The Author
Joel Bissitt
Joel has been an entrepreneur since the age of 19, now 33 years on he has experience of many different industries including retail, catering, health & fitness, technology and sport. Joel is our MD, the CEO of the Quality Franchise Association & has been a Franchisor twice himself. He is also founder of Franchise UK, the UK’s largest online franchise directory established in 2004 and owns other franchising publications including Franchiseek, an international franchise directory. Through these roles Joel has helped hundreds of franchise brands grow over the last 20+ years.