How to Grow Your Franchise Overseas

Franchise markets are strong internationally, which makes crossing borders to grow your brand and market share a tempting prospect. The consistent growth in employment rates, business rates and economic stability of the franchise industry means it’s becoming a promising area for secure future investment. The numbers tell a positive story:

• In the UK the contribution of the franchising industry to the economy grew nearly 50% between 2006 and 2016 [1]
• In the USA the International Franchise Association has predicted $36 billion dollar growth for the franchise industry throughout 2017
• In Canada according to the Canadian Franchise Association over 1 million Canadians, approximately 1 in 14 working Canadians, are employed directly or indirectly by the franchise industry [2]
• In Australia employment in the franchise sector continues to grow, and now stands at 461,000 people, out-performing overall employment growth rates [3]

Recent statistics show that international franchising is no longer just for famous food, retail and hospitality companies. In fact the IFA (International Franchise Association) estimates that one hundred companies begin their international expansion every year. 

There is scope to franchise in almost every sector. For example, Nutty Scientists is an educational business now running franchises in 40 countries. Founded in Europe in 1996, there are now franchisees in the USA, Canada and Australia and in 2017 it was ranked in the top 100 franchises by Franchise Gator.

Cast your net wider

Growing your franchise overseas is a fantastic opportunity to reach new audiences, either when a home market is becoming saturated or because it makes strategic sense to boost your market share internationally.

While there are huge benefits to going global with your brand, it takes planning to avoid cultural and legal pitfalls, as well as to ensure you retain control of your brand identity. Here are our pointers for heading towards international brand success:

Have clear brand guidelines

Your brand guide will set out rules for using your logo, typography and graphics, including specific Pantones, fonts and policies for their use.

Your franchisees will want and need to customise for their local audience. Your job is to provide a solid range of tools and templates they can use to maintain quality and consistency while not crushing local voice and messaging, as well as the franchisees’ creative enthusiasm.

Work with the right people

When franchising internationally, you will most likely be working with a master franchisee or a number of area franchisees. These people are hugely important. You’ll need to have a clear, open and honest relationship with them to ensure the success of your brand overseas.

While it’s important to be clear about your brand guidelines, research and listen too. Some words, slogans or colour palettes will not hit the mark overseas the way they do at home. Many big brands show savvy and flexibility in tailoring to local audiences.

For example, PepsiCo aren’t afraid to change the name of their brands across the globe. In the UK, you’ll find ‘Walkers’ crisps in the supermarkets, while they go by ‘Lay’s’ potato chips in the USA and ‘Smiths’ in Australia, as well as several other names in Asia and Central America. The packet colours change across borders too – salt and vinegar potato chips are in green bags in the UK and blue in the States. 

Tip: When looking to expand overseas conduct focus groups with locals, and show flexibility where it makes business sense.

Gain an understanding of what will resonate with your new, international audience, and adjust some of your branding guidelines to apply relevant cultural and social nuances.

Then make sure what’s agreed is absolutely clear and in writing through specific branding guidelines for that country or geographic area.

Establish solid QA protocols

You don’t want to be known as the brand with shoddy standards, whether it comes to printed marketing collateral, digital media or merchandise. It’s wise to be firm on this – remember that your franchisee is benefitting from operating under your brand, so it’s in their best interests to maintain standards for their own business profits, as well as for the brand’s global standing.

Work with your master or area franchisees to create a list of approved vendors for any design and printing involving your logo or trademarks.

It’s a great time to be exploring overseas franchising. Be sure to do it the right way to protect and grow your brand.

Rosie Niblock – Works at Proactive Marketing, a graphic design and print company based in the UK. They work with franchise groups and multi-site businesses to ensure brand conformity across the whole organisation through their web-to-print system.

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