Six 'Cs' for international franchise expansion
Written on the 26 July 2013 by Griffith University
With many franchises looking to expand their franchises internationally we thought it was time to revisit Asiawide Franchise Consultants CEO Albert Kong's six key considerations when planning international expansion.
The six 'C's of going international outline some key considerations which need to be addressed in the international expansion planning process.
Key International Expansion Consideration #1: Country conditions
For most companies, going to the troubled areas in Nigeria would be unwise due to the religious clashes there.
The social environment is also important a premier home/housing cleaning service franchise may have difficulty doing business in a nation where labor is very cheap, etc.
Key International Expansion Consideration #2: Contract / Regulations
For example, in Indonesia, the court will recognise the contract in the Indonesian language and not English; and in Vietnam, all franchise systems have to be registered with the Ministry of Industry and Trade (MOIT).
Key International Expansion Consideration #3: Consumers
For example, Koreans transact a lot through the internet, so is your product or service easily available via cyberspace? Will it infringe on your franchisees' territories?
Key International Expansion Consideration #4: Corner/Real Estate
Key International Expansion Consideration #5: Communications and Logistics
Key International Expansion Consideration #6: Candidate's (franchisee's) commitment /character/capital available
Note: The above is not an exhaustive list. Asiawide Franchise Consultants can run a 2-day workshop on "How to evaluate a franchise" for international expansion.
(The Asia-Pacific Centre for Franchising Excellence is also developing a number of resources to assist franchisors identify the best countries for their international expansion, and Austrade provides a range of resources on international expansion for Australian Franchisors, and also international franchisors looking to expand their operations in Australia).
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