GOING GLOBAL

1. Ask yourself why your franchise should expand across borders. Growing internationally tends to be more expensive, more complicated and yield a slower financial return than domestic growth. Maybe going global isn’t the right move.

2. Do not go international until you have the necessary resources and corporate buy-in. Will your support and training teams be able to do a good job working with franchisees in another country? Is your entire company committed to spending resources now to see a return over the long term?

3. Analyze markets and pick the right country. Franchisors that jump at the first international deal that presents itself tend to regret it.

4. Decide on the right development model. Franchisors growing internationally use a spectrum of international development models which all have their trade-offs. Choosing the right model can make the difference between success and failure.

5. Understand what you need in an international franchisee. It’s not just a matter of finding an investor; you need to find the right franchisee for your brand. Think about variables, like the franchisee’s experience and passion for your business. Don’t only focus on financials.

6. Identify the right strategies for finding franchisees. This will depend on your development model and resources. Approaches used by franchisors range from advertising and exhibiting at expos to networking at conferences and working with consultants and brokers.

7. Conduct due diligence before signing agreements with any international franchisee. It’s more difficult to keep tabs on international franchisees and if things go wrong, they are usually harder to fix. Outside of your home country, the reputation of your franchisees will become your reputation.

8. Understand the variables involved in opening in the new country and have a plan. Elements of localization to consider include everything from culture and tastes to laws, politics and supply chain.

9. Join IFA to make your company’s expansion safer and simpler through enhanced credibility, support, education, development resources and more. The IFA has represented and protected the interests of the franchise community since its inception in 1960.

10. Attend IFA’S convention, the premier event in franchising to learn what’s involved in depth, come up to speed on best practices, network with leaders in the franchise community and find expert help.

Robert Cresanti, president and CEO of the International Franchise Association (IFA), highlights strategic steps that MENA concepts must consider if planning to extend their reach further afield