Presentation on theme: "Are you Prepared for International Expansion? Prepared by Duncan Berry – Director of European Franchising – Cartridge World."— Presentation transcript:
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) Prepared by Duncan Berry – Director of European Franchising – Cartridge World Pros - 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 franchisorCons - 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
SUMMARY Financial Planning Market Analysis Adaptation of Business Model? Internal Resources Prepared by Duncan Berry – Director of European Franchising – Cartridge World
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