how to franchise overseas
TRANSCRIPT
International success through Franchising
Euan FraserAMO Consulting
Companies AMO has Helped:
Agenda
We’ll look at:
• What types of opportunity are there?• What does a franchisor look for?• How to approach a franchisor
Investment franchise eg. Hotels
high capital investment franchisee not involved employ management team
Types of Franchise:
Types of Franchise:
Management franchise eg. Fast Food
franchisee employs a staff uses management skills controls the running of the business
Types of Franchise:
Executive franchise eg Advice
white collar work uses skills and intellectual property commonly used in b2b
Types of Franchise:
Retail franchises:
high cost/high yield sells a known brand high profile sites
What makes a good partner?
• Business experience• Experienced management team• Strong financial position• Local market knowledge• Brand sympathy• Physical resources
Preparing the Way
• Prepare your business
• Carefully research the partners
• Develop a profile of your business
• Provide a profile of the market in Nigeria
• Secure sufficient investment to grow
Recruitment Process• Make contact and offer to visit HQ• Present you credentials• Explain the potential of opening in Nigeria• Host a research visit• Negotiate Heads of Terms• Develop a business plan for the opportunity• Agree a deal
International Partnerships:Franchising Partnerships:
Quality control/standards maintenance
Low High
Low
High
Income / Brand growth
Distributors
Owned
Master Franchising
Concessions/Licensing
Area Developer
Working Together
The Franchisor should:• Dedicated international team at HQ• Provide access to a Franchise Manager• Build strong relationships with Brand Partners• Build the Brand together through strong
support
Tips for success
• Know your market & competitors• Seek advice from an experienced franchise
consultant• Prove the concept via a pilot operation first• Be sure the brand will stand the test of time• Choose your partner carefully• Don’t under estimate investment required • Ensure strong franchisor support
infrastructure & ethos
Euan Fraser74 Kirk Street
StrathavenUK
ML10 6BA
+44-1357-523308e.mail: [email protected]
www.amoconsulting.com