If you aspire to run a business overseas, opening a franchise is one of the best options for turning this dream into a reality.
If you aspire to run a business overseas, opening a franchise is one of the best options for turning this dream into a reality. However, opening a franchise, particularly in an international location, is a step that will require a lot of careful planning and consideration. Any business undertaking is always going to be a big decision that can come with some huge risks, and opening a franchise is no different. You will need to ensure that you are ready to put in the work to properly prepare for your new venture, be committed to making it work, do your due diligence, and research carefully when it comes to choosing the right international franchise for you and getting started.
Where to go?
First of all, you will want to consider the country where you want to open your overseas franchise. Perhaps you already have a country in mind that you’d like to relocate to and are considering buying a franchise there to make an income. Or, you could be considering countries where a certain franchisor is doing exceptionally well with the idea of managing the franchise remotely. Whatever your goals, it’s important to think about how well you know the countries that you are considering. Will you need to learn a new language in order to successfully communicate with your franchisor and employees? If this is not something that you are able to do, then it’s worth considering an English-speaking country or finding a global franchisor with headquarters in the US.
Research your options
When it comes to opening an overseas franchise, there are certainly plenty of options that you could consider. A global company like McDonald’s or Starbucks, for example, might be an ideal choice for you if you want to open an overseas franchise with a brand that you are already familiar with. On the other hand, you could research local franchises in the area that you want to relocate to or start your new business in. Whichever decision you make, it’s important to carefully research the franchise option and learn more about how it runs to ensure that you are making the decision based on your individual needs and requirements.
Learn about business culture
Depending on where you decide to open your overseas franchise, there may be a very different business culture compared to what you are used to. Even if you have successfully opened a franchise with the same brand at home, do not expect things to be exactly the same overseas. Culture and the way that business is conducted can vary a lot from country to country, so it’s worth spending some time there first and getting familiar with everyday working life. Working as an employee for the franchise company that you are considering starting your own business with is always an ideal option for those who want to learn more about the inner workings of the brand - and it can be invaluable if you want to open a franchise in a country that you are not familiar with.
Work with a PEO
If you want to open an overseas franchise and manage it remotely, working with a global PEO or professional employer organization is an ideal option. A PEO can assist you with a wide range of complex business processes that will be essential for getting things up and running in your new franchise including finding and hiring the best local talent, managing payroll, providing employee benefits, and anything else that your franchisor does not offer assistance with. While most franchisees will get some assistance from the franchisor when it comes to aspects like employee training and marketing, an international PEO solution can be useful for stepping in and assisting with the areas that they do not cover. New Horizons Global Partners offer an international PEO solution that you can take advantage of to ensure that various aspects of your new overseas franchise run smoothly.
Consider other costs
Opening a franchise anywhere will always come with its own set of costs. After paying the franchise fee you will usually be required to purchase inventory, pay employees, and pay a fee for marketing to the franchise brand. These costs can vary depending on the franchisor brand and the location, so be sure to do your research before you sign the dotted line and make sure that you are happy with all the costs involved. Again, even if you have a franchise with this brand at home, do not assume that the costs are going to be the same overseas. Different salary expectations, target audiences, and preferred marketing styles in certain locations may have an effect on the amount that you will be required to pay.
Opening a franchise is an ideal way to start a business if you want a ready-made brand that’s already recognized in the area. Keep these tips in mind before you open a franchise overseas.