International Franchising

International franchises (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 domestic franchising does not always encounter.

Unlike franchising in your home country, international franchising usually involves selling the franchise rights to entire countries, or even groups of countries or 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.

For each target country/region, issues such as currency and exchange, consumer and market variations, language barriers, taxation, corporate laws, local customs, etc. all need to be addressed. Successful international franchising is a minefield for the inexperienced and is not to be embarked on lightly. But a successful overseas launch can mean a brand establishing itself as an international force to be reckoned with, and of course increases the value of the business substantially.

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