Betting Is A Game, Franchising A Business

When we consider foodservice, there are several drivers for a successful international development, such as expansion strategy, excellence in operations and monitored business plan.

Franchisors and franchisees must dig into these points very carefully to avoid any bad partnership. This paper is about investigating how to reduce risks and maximize success for both parties.

Franchising a Business is building a long-term partnership

• Co-development and cooperation (brand+operational system+assistance vs local market knowledge+resources)
• Monitored plan vs opportunistic expansion
• Limited capex for franchisor, but franchising has a cost. Supervision, training, travel costs are often underestimated

Winning franchise system for franchisor and franchisees has 3 pillars

• Shared ambition and trust: Clear understanding of the brand equity+clear success path and requirements+shared and confident business plan
• Fair value sharing between parties (balanced mutual P&Ls)
• Training and control: Excellence in operations is # 1 brand equity protection and this mindset must be shared between franchisor and franchisees. When you missed the target, the game is over

What does International Expansion mean for a franchisor?

Defining your LT International Strategy

• Where to go and why?

Analyze potential markets through demographics, purchasing power, competition, local supply.

• Market prioritization based on sales potential and RTM (local regulations/supply/skilled staff)
• Loop strategy…