Achieve international expansion with
How2Franchise
Franchising is not only a methodology that
can help you expand your business
nationwide, but worldwide as well. At
How2franchise we have a number of methods
your business can use to develop
international operations and build a global
brand, we at How2franchise have been
assisting brands to do this for over two
decades.
Master,
Regional, Area Development Franchising
A number of different structures have been
developed to deal with the difficulties in
overseeing international franchise networks,
the simplest being Master Franchising. In
this situation the franchisor awards a
Master Franchise to a suitable indigenous
individual or organisation in the target
country, often in return for a significant
investment. The Master Franchisee secures
exclusive rights to develop that country
under the franchisor's brand, trading style
and system either by establishing a
sub-franchised network, Master
Franchisee-owned outlets or a mixture of the
two.
IIn some countries (such as the USA) one
Master Franchisee may not be able to manage
the entire territory. The Regional
Franchising approach divides the target
country into regions, for example dividing
the USA into states, which are treated as
mini Master Franchises. These Regional
Franchisees must cooperate on national
initiatives such as marketing.
In some companies or industries where
sub-franchising is not permitted and the
franchisee must own all new outlets opened,
a whole country may not be the most
efficient size of license and the territory
is divided, much like in Regional
Franchising. Where no sub-franchising is
taking place, this practice is usually
called Area Development Franchising.