Despite the political and economic problems going around the world, there are many opportunities to invest in the franchise world for this year and beyond. Before taking our conversation to the next level...
What is international franchising?
According to the Dictionary of the International Trade, international franchising is a system based on the licensing of the right to duplicate a successful business format in foreign markets. This gives the franchisee the power to distribute the brand's products and/ or services, having wider territories.
Even though this can raise more responsibilities and many expenses, having an international brand has much more opportunities in the markets. So in other words, the benefits of international franchising is that people are able to have a successful business format not only in its country of origin, but in others.
One of the benefit of this is that the franchisee will have a wider market, a more recognized brand and, if everything goes well, a great reputation. But remember what Warren Buffet said:
“It takes 20 years to build a reputation and five minutes to ruin it.” - Warren Buffet
Are international franchises good business to invest in?
Having an international franchise business may sound scary to some people, going big! Having eyes on me!
Many people believe that having the aim of becoming international is ambitious and that they will not give it a try because it involves having many responsibilities AND THAT IS OK!
Having an international franchise business is not for everyone and this article does not state that if a franchise is not international it will not work, this article focuses on stating the benefits of becoming international.
It is clear that yes, going outside one's country is a big step, but it offers many possibilities for a franchisee. Below you will find the top 3 reasons of why going international is a great opportunity
1. Wider Markets
Being in other countries increases the target market diversification, it involves having wider markets, more people to look at a franchise. People are not limited on being only at a certain location, but they can go big, go global.
2. Requires Less Risk
If the brand is well established, and has a successful business plan that shows profit, the risk is much lower than starting a business from scratch, this is due to the fact that the amount of money that will be invested is known and also, because it is a proven business, the risk is way lower. What I mean by this is that people have seen the franchise succeed, so instead of having two main things to prove:
1) That the business model works
2) That the franchisee is ready to run a franchise
the "only" thing the franchisee has to prove is that he/ she is able to run a business.
3. You become part of a Group
The main "relationship" of franchise is with the franchisee of course, but it is important to keep in mind that there is also another with a higher level. International franchising is about connecting with other business models and franchisors different places. Becoming part of an established international business network is one of the many advantages of being international.
The three points listed above are just some of the many benefits having an international franchise business has. After stating that, below you will find a list of some of the many international franchise business that will be worth investing on.
5 International franchise business that definitely worth your money this year:
On the table below, five successful business franchises are listed, as the title says, we suggest to take a look at them due to their success.
1. McDonald's:
The world’s largest franchise network with $89 billion in global sales. Despite increasing competition, it has held on to this spot every year since the rankings were first released in 2000. To put this size into context, it is larger than KFC, Subway and Burger King combined.
2. 7-Eleven:
Ranked as the world's second largest convenience store chain with some 55,000 stores in 16 countries!
3. KFC:
The world’s taste for KFC is insatiable and this giant serves more than 12 million customers each day in more than 115 countries.
4. Jeff
Yes, this brand was in the table above as well! In only 3 years, this Spanish startup has been able to have presence in over 30 countries and become a SUPER APP.
5. Hertz:
The world’s largest car rental business with approximately 9,000 locations in 147 countries and global sales of $14 billion!
The list above is just a list of some of the many international successful franchises. How to know if you have what it takes to be international?
Well, the most important quality anybody needs to achieve any goal attitude.
“Our greatest weakness lies in giving up.The most certain way to succeed is always to try just one more time.” - Thomas Edison
It is of high importance for you to know what you will going to do and knowing the territory you will be stepping into; but the thing I really want for you to take out of this article, is DO NOT RUSH!!
Take your time to analyze, to think, to get some answers from the outside and from the inside. Relax. And after doing all of this, you will make the right decision and you will succeed.
WELCOME TO THE GOOD GOOD LIFE!
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