Are you Prepared
for
International Expansion?
Prepared by Duncan Berry – Director of European Franchising – Cartridge World
What is needed to be able to franchise outside of your home market?
 Identification that concept is feasible in a ‘foreign’ market
 Appreciation of any ‘local’ regulations that may affect the business model
 Look inwards at your own support infrastructure and its ability to cope with additional
responsibility
 Strong Financial Planning
 Marketing plans that account for any ‘local’ nuances
 Realistic expansion targets that support the operating expenses for the business
 Willingness to adapt the model if market conditions require the right Attitude!
Prepared by Duncan Berry – Director of European Franchising – Cartridge World
When should you begin International Expansion?
 Once you can answer what it is that you are looking to achieve
 Is it likely to compliment or detract from your ultimate exit strategy?
 When you are ready! Not when a ‘hot’ prospect expresses serious interest
 Once a proven base in your existing market has been established
 Demonstrate the model works and is profitable
 Devote time to such expansion
-
Must fit in with long term development strategy
 Identification of suitable markets based on factors such as:
-
Economic viability for your concept
Understanding of franchise model within market
Ability for the Unit Franchise fee to be attainable
Will the Unit FF support the chosen development model?
Prepared by Duncan Berry – Director of European Franchising – Cartridge World
What franchise strategy should you use?
 Experience of CW has been in MF
- Granting an individual or company the right to develop the territory under a Licence
 Onus on finding the right partner – never easy
-
€500,000-1m net worth with access to €200,000 liquid capital
English speaking capability
Willingness to support the franchise network
Ability to ensure successful launch of pilot store
Previous Sales & Marketing background preferred
Attitude and approach consistent with not needing to ‘re-invent the wheel’
Willingness to take on a challenge
To develop agreed store numbers in the country
Prepared by Duncan Berry – Director of European Franchising – Cartridge World
What franchise strategy should you use? (cont)
Pro’s
-
Should ensure strong development
No industry experience required
Understanding of “local” marketing place and business protocol
Development implemented by resident nationals
Ability to build own infrastructure – not wholly reliant on franchisor
Cons
- Resist agreeing to large territories, leads to under development
- Avoid too many partners
- Ensure distance is no excuse for lack of communication
 Considering introduction of Area Development Agreements
 Preference to break down existing territories
Prepared by Duncan Berry – Director of European Franchising – Cartridge World
SUMMARY
 Financial Planning
 Market Analysis
 Adaptation of Business Model?
 Internal Resources
Prepared by Duncan Berry – Director of European Franchising – Cartridge World