Aiding International Expansion through IFA’s Trade Mission Program

Creating a global brand is a dream of every entrepreneur when they open their first business. In the franchise industry, expansion into foreign markets can ultimately secure the future of a brand and allow a company to tap into revenue streams to help bolster development in the U.S.

However, laying a blueprint for international success is easier said than done, and making inroads with potential partners and investors overseas can be a daunting task for an emerging brand.

One way to begin testing the international waters or start making inroads in new international markets is the International Franchise Association’s trade mission program. Since the 1980’s, IFA has been organizing trips to put American franchise companies in touch with foreign contacts, learn the culture and economic landscape of new markets, promote the franchise model abroad, and help to facilitate growth. Franchise veteran Peter Holt spearheaded the initial trips, and since then, IFA has rolled out several trips per year.

"At the most elemental level, you get a lot of additional support and context with market exploration than you do with other approaches. Many franchisors have said this was the best use of their international development dollar,” said Josh Merin, CFE, Director of International Affairs for IFA.

IFA commissions three trade missions a year from the U.S. Commercial Service as a member benefit on a non-profit basis to help member companies expand internationally. Destinations are determined through the partnership and based on overlap between interest of IFA members and those of CS. Trips are typically planned between six months and a year out.

"Once we announce a mission, we post a page on the IFA site with all of the details and send an email blast out to IFA’s membership, and the U.S. Commercial Service sends one out as well,” said Merin. “Franchisors can fill out an application, and the US Commercial Service post makes the final decision."

According to Merin, a lot of the focus on the trade missions is helping franchisors find a franchisee for the country or region. Because developing a franchise brand is different and more complicated than finding a distributor to export goods, franchisors are often unable to get what they need on non-franchise trade missions.

Merin says finding the right match between a concept and market is important. "If we were mounting a trade mission to Saudi Arabia and we had a brand apply that is driven by liquor sales, that just doesn't make sense,” said Merin. “We have to think about the fit in a given market. There are some brands that just work more easily on an international scale. For example, pork focused concepts don't make sense in heavily Muslim markets."

There’s also an educational aspect to prepare brand representatives to do business.

"We usually start off missions with market briefings, and one of the things we discuss are the cultural considerations of doing business. We discuss safety if it's relevant, and try to set them up for success," said Merin.

Brands have been able to hammer out deals after, on, and even before the trip – such as Wing Zone who was connected to a potential international franchisee during a trip to Colombia, and ended up finalizing a deal before the mission officially started.