How to Import a Franchise

Imported business models must be adapted to attract American consumers.

A franchise business is based around a specific concept, product or recipe. The United States has very low barriers to entering the market for entrepreneurs, making the U.S. the ideal soil to import a successful franchise idea. The technical procedure for establishing the business or incorporating in the US will be the easy part. Importers of franchise businesses must prepare to adapt the franchise to the U.S. market.

Instructions

1. Adapt the franchise business plan to suit American consumers. Change the name, brand or logo by abbreviating the name or modernizing the look if necessary. Eliminate any local or cultural references that Americans would not understand, such as references to local or cultural leaders from the country of franchise origin. Streamline and automate any back-office functions that could benefit from American technology, such as tracking paperwork.

2. Establish an initial location where a distinct market for the franchise concept exists. For example, set food imports near cities with large concentrations of immigrants from the country of franchise origin. Set fashion imports in cities known for fashionability, such as in New York or Los Angeles.

3. Register your company with the state secretary in the state where the business will be conducted. Register for state and local taxes.

4. Apply for an Employer Identification Number (EIN) from the Internal Revenue Service. You can apply online at IRS.gov. Since your franchise may be a master franchise in the U.S., you may be considered the sole proprietor or part of a partnership or joint venture depending on the terms of your contract with the main franchiser. Consult an attorney to be clear on how to self identify for EIN application.

5. Obtain state permits or licenses if necessary. Not all franchise concepts call for a permit or a license to be sold. However, since you may be importing products from the franchise's home country, you will need an import license for any trademarked or copyrighted items.

6. Market the product to the target audience. Consult a marketing agency for the best methods of reaching your audience, but you will definitely need a website, separate from the franchisor's site.

References

• Franchising World: The Challenges of Importing a Franchise Concept to America: "Re-planting" a Franchise in the United States Raises Challenges.
• Entrepreneur: Franchising Goes Global
• Business.gov: 10 Steps to Starting a Business
• Entrepreneur: How Do I Start A Franchise
• Entrepreneur: 4 Key Questions for Prospective Franchisees
• Inc.com: How to Start A Franchise

Resources

• Internal Revenue Service: Online EIN Application