International franchising (also known as Master Franchising or Master Licensing) can be an extremely efficient and profitable way of expanding a business overseas. But there are a whole range of issues to be considered, which don’t necessarily apply to domestic franchising.
Unlike franchising in your home country, international franchising usually involves selling the franchise rights to entire countries, regions or even continents. Furthermore there are various strategies that can be adopted that vary from business to business and from country to country.
Often different strategies must be used by the same franchisor in different countries. And for each target country/region, issues such as currency and exchange, consumer and market variations, language, taxation, corporate law, local customs, etc. all need to be addressed. Successful international franchising is a minefield for the inexperienced and shouldn’t be embarked on lightly.
That said, a successful master franchise or master licence operation can mean a brand being established as an international force relatively quickly and with minimal investment from the franchisor/licensor. Which of course increases the value of the business substantially.
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