Master Franchising
The fundamental principle involved in international franchising is a partnership between a company with international aspirations for its brand, and an individual or organisation in a target country which is better equipped, both culturally and logistically, to handle its own market. The Master Franchise combines a license (transferral of intellectual property rights), exclusive distribution agreement (for the franchisor's services and products), plus a commitment by the franchisor to provide initial and ongoing training and support to the Master Franchisee and its staff.
This international partnership model makes market penetration faster and smoother by utilising on-site expertise, contacts, language skills and local knowledge - all provided by the Master Franchisee, who is in an excellent position to help, guide and consolidate the franchisor's move into the target country.
North American franchisors have been particularly successful at adapting their extensive franchising experience to boosting exports, especially in the key entry technique of selling Master Franchises. In a recent survey of US franchises conducted by the Rosenberg International Center of Franchising and the International Franchise Association Educational Foundation, Europe was identified by US franchisors as a top expansion target, after neighbouring Canada, with 15 per cent planning to establish operations in the region over the next three years. However, the survey also found that only about 10 per cent of franchisors participate in overseas trade exhibits and trade missions.
Therefore, investors serious about assessing the international franchise opportunities available from the US, and indeed other countries, are better served by surveying franchise media such as European Franchising and its website: www.european-franchising.net. European Franchising presents a host of expansionary brands from the Retail, Service and Food, Beverage & Hospitality sectors which are seeking to grant National and Regional Master Franchise brands, and additionally provides commentary and advice from experienced industry experts.
Stuart Anderson, Editor
Email comments and queries to stuarta@fdsltd.com
This international partnership model makes market penetration faster and smoother by utilising on-site expertise, contacts, language skills and local knowledge - all provided by the Master Franchisee, who is in an excellent position to help, guide and consolidate the franchisor's move into the target country.
North American franchisors have been particularly successful at adapting their extensive franchising experience to boosting exports, especially in the key entry technique of selling Master Franchises. In a recent survey of US franchises conducted by the Rosenberg International Center of Franchising and the International Franchise Association Educational Foundation, Europe was identified by US franchisors as a top expansion target, after neighbouring Canada, with 15 per cent planning to establish operations in the region over the next three years. However, the survey also found that only about 10 per cent of franchisors participate in overseas trade exhibits and trade missions.
Therefore, investors serious about assessing the international franchise opportunities available from the US, and indeed other countries, are better served by surveying franchise media such as European Franchising and its website: www.european-franchising.net. European Franchising presents a host of expansionary brands from the Retail, Service and Food, Beverage & Hospitality sectors which are seeking to grant National and Regional Master Franchise brands, and additionally provides commentary and advice from experienced industry experts.
Stuart Anderson, Editor
Email comments and queries to stuarta@fdsltd.com
