How to Recruit International Franchisees

Out of all the franchises in the world, 16% of brands have a global presence, with more franchisors focusing on international expansion every day. Although many franchises flourish overseas, finding the best international franchisee candidates can be one of the most time-consuming challenges brands face. Recruitment is a particularly important process, as international franchisees have to be chosen carefully due to the increased responsibility they have compared to domestic franchisees, like running the franchise locations by themselves and having limited access to corporate support.

1851 spoke with Leandro Gasparin, vice president of franchise operations at 3,100-plus unit multinational chain Popeyes, who detailed the brand’s process behind recruiting international franchisees.

How International Recruitment Differs From Domestic Recruitment

Typically, franchisors partner with a master franchisee overseas, whereas they only partner with local franchisees when developing domestically. A master franchisee is a resident of the country and understands the political and cultural standards in their country. They can either operate their own units or sub-franchise to qualified franchisees in the region. Master franchisees act as the international representor of the franchisor, providing support to franchisees on a local level.

“In most of our international markets, we have master franchise agreements with local partners,” said Gasparin. “While in the domestic market, we partner with several franchisees to develop the brand in the United States.”

Master franchising is not the only way for franchisors to expand internationally, however. Some franchisors simply monitor the performance of their international franchisees and provide them with support via virtual methods.

How Franchisors Find Qualified International Franchisee Candidates 

Distance makes international franchising difficult enough, but finding the perfect person (or group) to develop a brand overseas is an even more intimidating challenge. Not just anyone will do — franchisors should look for candidates who will build an international network, grow the brand name, uphold the brand’s standards and put their heart and soul into seeing the brand succeed.

But first, franchisors need to determine whom they are targeting for franchisee candidates from the very beginning, and then build from there. They should take a hard look at their brand’s concept and decide what kind of people or groups they want to bring on board, especially from an international perspective.

A well-financed international franchisee with access to real estate and local suppliers is a necessity for overseas success. Popeyes looks for those qualities in its international candidates, too, Gasparin says.

“We look for partners with local knowledge and financial capabilities,” he said. “So they can develop the brand in the market and provide great experiences to our guests.”

Because of the importance of these specific qualities, international franchise prospects may differ from candidates that franchisors typically look for in their domestic market.

What Franchisors Look For in International Candidates and Vice Versa

As with any good relationship, franchisors and potential franchisee candidates need to take the time to understand their partnership. You’re not going to go into business with someone without getting to know them first, right?

Both the franchisor and the international franchisee candidate should be looking for positive, mutual commitment to building the brand overseas. Franchisee candidates, whether a single person or a large multi-brand group, typically want to take a close look at the franchisor’s international development program. The franchisor is looking for candidates who demonstrate that they are adequately funded and skilled to develop the brand in their country.

“It’s very important to make sure that it’s the right fit,” said Gasparin. “That’s why Popeyes specifically looks for long-term partners with ambition and operations expertise to build the brand at a fast pace.”

Check out 1851’s top list of franchises that found success through international expansion.