Next year’s IFA convention is set to take franchise professionals to New Orleans where the latest trends and networking opportunities will attract plenty of participants, not unlike what recently occurred in Las Vegas. With the industry buzzing after sharing and connecting over a few days specifically tailored to franchising, many franchise owners are considering what they will change to make their system even more efficient and profitable. This may involve how to expand and where.
Finding legitimate financial support through creditors has led many U.S. founded franchise companies into markets across the world where funding is accessible. The move to markets across the globe is a hot topic among franchisors, those already there and those contemplating the shift. For many brands, such a move makes perfect sense as international markets grow increasingly interested in brands from other countries that offer novelty particularly perhaps to younger generations seeking to visit a piece of the world beyond in their local area.
Franchise leaders looking to expand overseas must consider primarily how much research they are willing to perform and how prepared they are willing to become prior to any making any moves. The IFA convention shared a few key resources that franchisors can turn to for information and tips on how to make the move a responsible one. Strategic research is key.
Resources include Euromonitor, which covers industry and geography data invaluable to franchises spreading out across various countries. Additionally, International Council of Shopping Centers (ICSC) is a source that offers research materials and statistics as well as a variety of events that franchises can investigate to gain a greater awareness of different markets and expansion therein. The Central Intelligence Agency also offers information on international developments, shifts in public policy, and economic and social aspects of various global regions.
Establishing who to partner up with in another market and learning how to assess risks are both critical aspects of contemplating a move overseas, because only reliable and capable overseas partners will ensure successful expansion of a brand into new markets, which can involve a pioneering spirit. The ability to foresee risks and understand the local socioeconomic and political climate is essential as well, and franchisors cannot perform too much research in preparation for such a move.