Franchise systems globally expanding must understand the ins and outs of certain cultural landscapes to cement the success of the brand in new locales. Franchises reaching out to the rest of the globe must navigate various cultures to maximize potential success and create even more expansion opportunities. With this in mind, many franchises find that master franchising arrangements offer an advantage for global maneuvering. As an ongoing part of franchise industry success into 2013, multi-unit development of franchise locations, whether domestic or international, is a viable option that many franchisors find appealing to expand a brand in a region with the support of a primary investment party. Though multi-unit development alters the degree to which units can be monitored, the practical value of this arrangement is in its simplicity: dealing with one investment agreement that covers a broader area and multiple franchise locations, which is simpler from a lending perspective. Along with the investment agreement remains the responsibility of understanding international markets when franchisors choose to move around the globe. Franchises that expand globally at the right time with the support of a developer, one experienced with a certain market and the laws surrounding business development, often can create a sound business arrangement that will endure. Consider the following aspects of such an endeavor:
Importation Laws & Human Resources Laws
By working with a developer who is experienced dealing with the local agencies that oversee the handling, sending and receiving of goods, franchises moving to new countries benefit greatly. Understanding the legal landscape on a practical level concerning daily operation and any formalities required is vital. Understanding how the culture and legal establishments of the country in question deal with human resources is also imperative to avoid costly challenges and to maintain responsible international franchising standards.
Legal Matters Surrounding Opening Franchise Location
For franchisors anywhere, and especially expanding in areas of the world less familiar to them, gaining a detailed picture of what is required for a business to start trading and stay trading consistently from a legal perspective is important. This may involve registration processes and licenses to perform all aspects of opening the franchise in compliance with local authorities. The variation of laws and procedures may be great or small depending on the precise location of a prospective franchise.
Values & Customs of Region
Working with experienced developers often means access to knowledge that would otherwise require trial and error to acquire, which can take years to establish and benefit a business. By working with well-informed multi-unit management or master franchisees to assist with area development expansion, franchises can navigate how to locate the right location and manage the business in a way that is sensitive to cultural variation. This flexibility with a purpose, which requires precise planning and strategic development of the business over time, can in fact lead franchises and their developers to success in even supposedly challenging markets.