Expand My Business Via International Franchising
When it comes to expanding your business internationally, broadly speaking there are two options; to wholly own and fund the overseas expansion yourself, or to enter into some form of third party relationship where you are working with a partner – typically this means a franchising or licensing arrangement.
Each route to international business expansion has it’s merits, but there are clear and obvious differences between the two. Wholly owning an overseas business requires a much higher degree of management involvement, finance, commitment and you have to find and hire in local expertise. Your business is entirely exposed to the results of the venture – you benefit 100% from any profits that accrue, but similarly you are 100% responsible for start-up capital and any potential losses.
By contrast, when franchising a business internationally, your international franchise partner is relieving you of much of this responsibility. They are devoting management time, finance, commitment and providing the local expertise. They will run the risk of providing start-up capital and be responsible for the financial performance of the business. The cost to you of “Outsourcing” this effort and risk of your international development is that you will not receive 100% of the profits of a successful venture – but then neither have you put in the start-up capital or will you be responsible for potential losses.
Franchise My Business Internationally
Of course, when deciding whether to franchise a business internationally, your starting point is to clarify your business objectives. If one of your main objectives is to quickly expand your brand internationally, then using an international franchise strategy has real advantages. Because of the relatively low cost of franchising a business internationally, it is not unusual for businesses to attack a number of international markets at the same time and achieve rapid brand penetration on an international scale.
If you are wondering “how do I franchise my business internationally”, then the starting point is to contact us today and have a free, no obligation chat to one of our international franchise consultants.