International franchising involves far more than American-based monoliths such as Coca-Cola peddling soda pop through franchisees in 200 nations, or KFC selling meals in 80 countries, or General Motors establishing "master franchise" arrangements in 192 nations.
Most of the international franchises show on a smaller percentage, with countries in the global economy exporting as well as importing.
The International Franchise Association reports that the U.S.-based Arthur Andersen accounting firm, surveyed national franchise associations in 39 countries. These associations were asked to name the number of parent companies and local stores in each country, their country's total domestic retail volume, and the percentage of the volume that involved franchising.
"The survey found that growth potential for franchising worldwide is increasing at a very fast past. The global market is far from saturated," said Leonard Swartz who, at the time of the survey , was Arthur Andersen's worldwide managing director of franchise services.
The franchising giants have their special niches. For example, Coca-Cola sends a syrup concentrate to franchise bottlers because it cannot ship such high volumes of whole bottles and cans. Kentucky Fried Chicken still relies on its secret herb recipe for franchises across the globe. General Motors has franchises that deal not only in vehicle sales, but also in vehicle financing and in real estate.
A large share of the market are dominated by big companies such as Yum! Brands Inc which owns KFC, Taco Bell, Pizza Hut, Long John Silver's and A&W. So, if you see these fast-food franchise brands always grouped together, now you know why.
It is important to state that the main economic engines in times of growth and recession are always small businesses, including small franchises. Thankfully, people want more than sodas , fast food and motor vehicles.
For example, there is an increasing demand for improved education.Bette Fedder, an America teacher, developed a drawing school in her own home. She then grouped a curriculum and began to recruit potential franchise operators. Young Rembrants now has franchises all across the United States and now in South Korea, with plans to expand on an international level. Other tutoring companies have franchises that focus on helping students with overall general education, writing essays, science and math.
The global economy may be rooted in the World Wide Web, but it also means that more packages than ever are shipped internationally. The big boys such as UPS may dominate, but there also are smaller companies involved. P.A.S.S. Shipping and Handling has 800 franchise stores around the world.
The costs and benefits of becoming a franchisee. You have to pay a one-time upfront franchise fee to the franchisor -- anything from $50,000 to open a known pizza parlor to $800,000 for a hotel franchise. You may also have an arrangement that involves a royalty contribution as a percentage of monthly gross sales, and an advertising contribution to the parent company.
Once you're a franchise owner, you have to keep in mind that all a franchisor wants is for you to succeed. If you do well, they do well. Once you qualify, you will receive plenty of support and advice. There are some exceptions, especially in the international market, but most franchisors want their franchises to be similar from one location to another so that customers know what to expect.
If you are seeking a franchising opportunity, do not be overly persuaded by companies that describe themselves as "fast growing" or "hot" or "on fire." Growth indeed can indicate that a company is moving toward success, but sometimes the pace of growth is too speedy and the company overextends with too many new franchises at once. A company with consistent and steady growth is your best franchise bet.
A sampling of other international franchising opportunities includes computer technology, cleaning products and services, home health care, home improvement, health and beauty, sports and recreation, travel and hotel. Those are just a few.
Most of the international franchises show on a smaller percentage, with countries in the global economy exporting as well as importing.
The International Franchise Association reports that the U.S.-based Arthur Andersen accounting firm, surveyed national franchise associations in 39 countries. These associations were asked to name the number of parent companies and local stores in each country, their country's total domestic retail volume, and the percentage of the volume that involved franchising.
"The survey found that growth potential for franchising worldwide is increasing at a very fast past. The global market is far from saturated," said Leonard Swartz who, at the time of the survey , was Arthur Andersen's worldwide managing director of franchise services.
The franchising giants have their special niches. For example, Coca-Cola sends a syrup concentrate to franchise bottlers because it cannot ship such high volumes of whole bottles and cans. Kentucky Fried Chicken still relies on its secret herb recipe for franchises across the globe. General Motors has franchises that deal not only in vehicle sales, but also in vehicle financing and in real estate.
A large share of the market are dominated by big companies such as Yum! Brands Inc which owns KFC, Taco Bell, Pizza Hut, Long John Silver's and A&W. So, if you see these fast-food franchise brands always grouped together, now you know why.
It is important to state that the main economic engines in times of growth and recession are always small businesses, including small franchises. Thankfully, people want more than sodas , fast food and motor vehicles.
For example, there is an increasing demand for improved education.Bette Fedder, an America teacher, developed a drawing school in her own home. She then grouped a curriculum and began to recruit potential franchise operators. Young Rembrants now has franchises all across the United States and now in South Korea, with plans to expand on an international level. Other tutoring companies have franchises that focus on helping students with overall general education, writing essays, science and math.
The global economy may be rooted in the World Wide Web, but it also means that more packages than ever are shipped internationally. The big boys such as UPS may dominate, but there also are smaller companies involved. P.A.S.S. Shipping and Handling has 800 franchise stores around the world.
The costs and benefits of becoming a franchisee. You have to pay a one-time upfront franchise fee to the franchisor -- anything from $50,000 to open a known pizza parlor to $800,000 for a hotel franchise. You may also have an arrangement that involves a royalty contribution as a percentage of monthly gross sales, and an advertising contribution to the parent company.
Once you're a franchise owner, you have to keep in mind that all a franchisor wants is for you to succeed. If you do well, they do well. Once you qualify, you will receive plenty of support and advice. There are some exceptions, especially in the international market, but most franchisors want their franchises to be similar from one location to another so that customers know what to expect.
If you are seeking a franchising opportunity, do not be overly persuaded by companies that describe themselves as "fast growing" or "hot" or "on fire." Growth indeed can indicate that a company is moving toward success, but sometimes the pace of growth is too speedy and the company overextends with too many new franchises at once. A company with consistent and steady growth is your best franchise bet.
A sampling of other international franchising opportunities includes computer technology, cleaning products and services, home health care, home improvement, health and beauty, sports and recreation, travel and hotel. Those are just a few.
About the Author:
Ariel Dess specializes in assisting companies successfully import and export with Latin America. To browse to his valuable resources, tips and links, click here distributor
0 comments:
Post a Comment