Benefits of International Franchising
Globalization is a driving force in the world economy. Countries like China, India, and Russia are particularly exciting because their exploding economies are producing millions of new consumers hungry for a higher standard of living. Many countries in South America and Africa are also eager to gain access to new products and new markets. More than 400 U.S. franchisors already do business internationally.
Growth in consumer spending abroad creates fertile opportunities for U.S. franchisors to expand internationally. Expanding internationally is a logical progression where a market exists internationally, or where the home market has become saturated. Foreign business operators may also approach U.S. franchisors with proposals to expand outside the U.S.
International franchising also allows a franchisor to build and enhance its brand as a global competitor, and to reduce its dependence on the U.S. market. Many international markets present growth opportunities that franchisors should develop in the interests of diversification, as well as growth of market share.
At The Johnson Franchise Law Firm, we help franchisors analyze the potential of international franchising. We also help them minimize the risks that accompany entering a new market. Rick Johnson has represented franchisors with franchise transactions in over 50 countries. He has a long record of successfully expanding U.S. franchises onto every continent.
Planning for international franchising
International franchises and franchising have become a popular method for companies to diversify into new markets. The U.S. franchisor uses the franchisee’s local market knowledge to expand into the new geographic area.
An American franchisor expanding abroad must address several concerns, such as:
- Determining the type of franchise to be offered: unit franchises, master franchises, area directorships, or some other collaborative arrangement
- Protecting trademarks and other intellectual property internationally
- Complying with the laws of the host country
- Drafting international franchise agreements and disclosures
- Creating manuals and training programs
- Accommodating the customs and cultures of the host country
Contact our franchise law firm
At The Johnson Franchise Law Firm, our focus is on franchise laws, including international franchises and franchising. With over 20 years of experience, franchise attorney Rick Johnson understands the complexities of international franchise law and can guide your company away from costly pitfalls. To take your business to the next level through international franchise development, please contact The Johnson Franchise Law Firm today.