If an expansion of the franchise system is planned, careful planning is required. In order for the project abroad to actually succeed, a good preliminary consideration is necessary. The right expansion concept is essential to ensure that internationalisation can succeed.
Among other things, the right method must also be chosen to approach internationalization:
The award of a master franchise licence:
In the course of this, a master franchisee is sought who will develop the country of choice locally with the help of so-called sub-franchisees. A master franchisee also comes from the country himself, knows the culture and is fluent in the language. As part of master franchising, the first step is to test the franchise concept in a pilot operation and, if necessary, adapt it to the needs of the country. If the system works, the concept can be developed and rolled out with the help of the sub-franchisees.
In this type of franchising, the franchisor grants direct licenses. The franchisor searches for suitable business partners in the target country without a third party like the master franchisee being involved. It is a fact that the path of internationalisation on this path can prove to be more complicated, as the franchisor himself bears the entire responsibility. It is therefore up to you to make the necessary adjustments for the other cultural context and then implement them yourself. In this case, therefore, you should be prepared to take on higher budgets and shoulder the risks on your own.