How to Franchise a Business Internationally

If you are a successful franchise owner who has watched your business grow from a local to a nationwide success, you may be thinking about taking your company global. Many franchisors have developed their businesses internationally, but if you are considering this venture, you'll need to learn the laws and global marketing techniques required to pull it off successfully.

Instructions

Difficulty: Challenging

Things You’ll Need:

• Franchise consultant
• Franchise attorney

1. Research the franchise opportunities that are available to you in different countries. Target each potential location individually, learning all you can about its franchise laws and investigating effective marketing techniques to connect with potential buyers.
2. Narrow your search by determining which countries may be a good match for your franchise. Things to consider include whether or not a country has a market for your products and services, the local competition that exists, the culture, the strength of the local economy and any legal barriers that might make franchising difficult.
3. Bring your choices to a professional consultant who can review your research and determine which countries look like the best matches for your franchise. You'll also want to discuss how you can market your franchise successfully to foreign investors.
4. Generate international interest in your franchise by attending trade and franchise shows, advertising on the Internet and utilizing other marketing techniques. Consider hiring a public relations consultant to attract interest in your business.
5. Contact the U.S. Chamber of Commerce and inquire about their Gold Key Matching Service (see Resources below). This program helps businesses secure international partners by researching the market, finding potential buyers and setting up in-person meetings between interested parties before a contract is signed.
6. Attend international trade missions, events where franchisors are introduced to business people throughout the world. These events can expose you to variety of qualified prospects in a small amount of time.

Tips & Warnings

• A professional franchise consultant can help you determine the pros and cons of franchising your business internationally. These consultants are helpful whether you've been in the franchise business for years, or you are just getting started.
• If you're seeking franchise consultants who are skilled in international franchising, contact the International Franchise Association for recommendations (see Resources below).
• Don't make a decision about franchising your business internationally until you learn about the process of going global. Speak with other international franchisors, discuss your options with a consultant and hire a franchise attorney who is highly skilled in international franchise laws. You want to make sure you conduct your business legally to protect your assets.