Earlier this month the Coffee Club announced the opening of its first store in Egypt with plans to open a further 15 stores over the next 5 years.

If you are already running a successful franchise business in Australia, perhaps you may be thinking:  Should I expand my franchise overseas?

There are many benefits in expanding your franchise business internationally. International presence increases your overall brands strength, gives you access to a new audience of consumers and provides numerous invaluable experiences – from meeting new people, learning better ways to run your franchise and diversifying your products or services.

Today’s globalised nature of the business marketplace does mean international expansion is easier than it was in the past.  Of course, franchisors looking to internationally expand will face many unique challenges, such as language barriers, cultural differences, unforeseen costs and the difficulties of distance presented by running a business from another country.

We have listed 3 key considerations that you should consider when deciding to expand your franchise on a global scale.

Branding
Certain words, colours and symbols may not have the same connotations country to country. Differences in language and culture must be taken into account to your logo, colours, business name and product names. While this might seem obvious for franchises expanding into other countries that speak different languages, it should also be considered in countries that seem culturally similar.

Don’t assume your product names will translate directly. You should seek advice from a professional translator to ensure your product or business name doesn’t sound ridiculous, or worse, offensive within the country’s culture .

You should also ensure that your key messages used for recruiting franchisees are relevant and culturally appropriate.

Franchisee recruitment
Every franchisor would love to find reliable and passionate managers that take the worry out of everyday activities of running the franchise overseas, which is why you cannot go past the advantages of online.

Online marketing tactics are not affected by time differences, long distance telephone charges and the many other obstacles associated with distance. Websites, social media accounts and online business directories, such as FranchiseBusiness.com.au, are accessible around the world and are available 24/7.

If you are expanding into another English-speaking country, you should keep your website up to date in order to accommodate the other country. However, if you are expanding into a non-English-speaking country, then you will need to have your website translated. Translating your website will show your franchise business’s credibility and increases your brand’s awareness in the country.

Regulations
Many countries have regulations, which dictate the rules and restrictions in buying and selling franchises. Even countries that are located within a relatively small area, such as Europe, can have differing franchising laws.

Research is key. Consult the Franchise Council of Australia, as well as an official franchising body and/ or lawyer from the country you wish to expand into, in order to find out what you need to do when you start building your franchise business overseas.

Research all fees and costs that will be involved, for example, the cost of trademarking your brand in the country, any taxes you will be up for, the costs associated with setting up a store, hiring staff and marketing. The last thing you want is unexpected bills.

Others have paved the way and learnt from mistakes, so research extensively. If you have found that there is a good market for your product or service, then take the time to ensure your branding and franchisee recruitment are right and the costs add up.

It will be an uphill battle at first but do it right and you will set yourself and your franchise business for international success.

Need Help?
FranchiseBusiness.com.au has services to promote your business for sale in New Zealand and India with close working relationships with the Franchising Association of India (FAI) and the Franchising Association of New Zealand (FANZ).

For more expert advise you may also consider reviewing the Franchise Advice section on FranchiseBusiness.com.au.