What To Know Before Investing In International Franchises

by | Apr 11, 2018 | Franchise Broker

Many people want to realize the dream of owning their own businesses. Some will try to start their own brand-new businesses, but many choose to go the franchise route, figuring they can get a head start on obtaining profit and reputation by going with an established brand and branching it out to a new area. Some even are willing to invest in international franchises, willing to bring a brand from another country into their own. This opportunity can be very exciting, but there are certain factors to consider before doing so; learn more about what needs to be evaluated below.

Evaluate the Brand to See if It’s a Good Fit

Like any franchise, a potential franchisee needs to evaluate the brand to see if it’s a good fit for him or her. The initial startup costs to obtain a franchise is something that must be considered. Like with domestic franchises, international franchises’ fees can be quite high, making this an opportunity that is not right for everyone. Also check to see if the franchisor is willing to provide a good deal of support for a franchisee, particularly if the business is not in that country yet.

Expect Initial Marketing Costs to be High

Additionally, being that international franchises may not be in a particular country yet, it is important for those entrepreneurs who are seeking to expand that brand into a new country to do some research on the ground first in regards to whether that local area will accept and shop at that brand. If they are not familiar with the brand, chances are high that business will be slow to start off, and it will be up to the franchisee to expand the brand’s reputation and image through good marketing, education, and word-of-mouth.

It is really the only way an international brand can gain an established foothold in a new country where most to all residents are unfamiliar with it. This can be done with international franchises, but only if the franchisee recognizes the need for extensive initial marketing and is willing to commit to it from the beginning.

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