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International franchising

What is International franchising

  • A system based on the licensing of the right to duplicate a successful business format in foreign markets. The franchisor grants to the franchisee the exclusive power to distribute its products or services in establishments which are equivalently equipped and furnished, as well as the right to use Intellectual Property Rights (commercial signs, brands, trademarks etc.).

The idea of tapping into new global markets is financially appealing to any ambitious business owner.

For investors, the thought of being the sole owner of a string of successful franchises in your country is enticing. McDonald’s, Marriot, Hertz and Century 21 are but just a few everyday names that have leveraged international franchising to their great success.

International franchising, otherwise known as international licensing allows stand-out companies to enter new territories by using their brand and intellectual property (trademark and know-how) in return for royalties and product sales.

This form of strategic partnership encourages businesses to grow internationally with low-risk incentives. For the franchisor, it requires very little up-front investment as it's the franchisee who will have to satisfy the financial requirements in return for the keys to the company. In exchange the franchisee gains unprecedented access to an established brand, with the added benefit of proven know-how. Of course, there are no guarantees when it comes to new businesses. However, having the ongoing support of the franchise headquarters in your back pocket is a handy bonus. At the end of the day, it's in both parties’ best interest for the franchisee to succeed.

  • This form of strategic partnership encourages businesses to grow internationally with low-risk incentives. For the franchisor, it requires very little up-front investment as it's the franchisee who will have to satisfy the financial requirements in return for the keys to the company. In exchange the franchisee gains unprecedented access to an established brand, with the added benefit of proven know-how. Of course, there are no guarantees when it comes to new businesses. However, having the ongoing support of the franchise headquarters in your back pocket is a handy bonus. At the end of the day, it's in both parties’ best interest for the franchisee to succeed.

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