Under the tag of franchising you have different categories of businesses. There are photography, restaurant, plumbing, and other types of franchises. One category of franchising is international franchising. It is possible to own an international franchise. You may wish to own it in that country of origin or in your own country. If you own a franchise in a different country it is best to speak with a solicitor from that country, spend time researching the market in that country, and really consider what you are doing.

It is harder to run a business in another country than where you live. You are dependent on other people. Instead, you are better off considering bringing a business into the country where you live. In this case we are discussing bringing a foreign franchise into the UK. There is one imperative aspect you must do when looking at international franchising. This is to have professional advice at each step. There are also four things to consider with international franchising:

• Where will you start?


• Why have you decided on international franchising?


• Risks


• Costs

How will you find the international franchise you wish to bring in? Do you already have a company in mind? If you have a company in mind then you need to approach that company and ask to see their information. You should require evidence of their other successful franchises, the costs of that franchise, and then consider the next step. The next step would be market analysis in your country to see if the franchise is a viable option for your area and the UK.

The second question asks you to draw up a list of your reasons for going with an international company rather than a local franchise. What are the advantages/ disadvantages? What issues could hinder the franchise opportunity from working out?

There will be more risk with an international franchise, especially one that is not already in the UK. These risks could hinder your funding for the franchise. Banks want low risk business investments. If you can prove the international franchise is viable you may get a better loan, but probably not as good a loan product as a local franchise.

The costs need to be thoroughly examined. Have you received paperwork based on Euros or British Pounds? If it is in Euros what is the monetary difference? The costs may look great in Euros, but it might look worse once you have converted them. Also consider the percentage of revenue the franchisor may want. Based on a foreign company you might have to pay out more once the revenue has been converted to local currency.

These are just some of the important points you have to consider in international franchising. It can be a viable option depending on the opportunity you are interested in. With international franchising it is best to start out being familiar with the company, how it runs, and your own market. Always remember that what looks great on paper doesn’t mean reality follows the same path.