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International Expansion: Do the Opportunities Outweigh the Challenges?
A closer look into why brands decide to go international
As companies expand their brand internationally, they quickly learn that there are many hurdles that need to be overcome. One of the most humbling realizations is that one’s success at home does not necessarily translate into success abroad. While the world is getting smaller due to the global economy and increasing travel and communication, differences in cultural, legal, and local business practices seem to magnify as interactions increase.
Before embarking on an international franchise development program, companies need to make a thorough assessment of their domestic operations, their ability to support international operations, and their financial capability to fund a successful international expansion.
This leads us to asking the real question at hand – is it worth it?
According to JAN-PRO and Maid Right Vice President of Development Scott Thompson, it is absolutely worth the effort to go international. Now in 14 countries, JAN-PRO has been able to see great success with international expansion building strong systems in countries like Brazil, Mexico and Canada.
“When you grow your brand internationally you get a lot of different benefits,” said Thompson. “For example, we’re in Nigeria and it is a country, similar to many, that doesn’t have the right disinfecting processes in place. They use bleach and it’s not safe for people, but this creates a strong need for a concept like JAN-PRO to improve the quality of life for so many through our franchise system and technology that didn’t exist previously.”
Finding the right market and the need is key for growth domestically, and this sentiment is carried across international borders.
“For us, international development goes hand-in-hand with many other businesses expanding internationally,” said Thompson. “When brands like Coke or Ford need to build a new facility in a new country or a new state, we are able to fill their need. We’re able to create a hub for growth by selling countries at a time and we’re recruiting Country Masters to further develop those countries.”
It’s clear that service brands are a natural fit internationally, but what about a food brand? Not every brand can be a McDonald’s or Dominoes, so do other food brands succeed internationally?
Buffalo Wings & Rings, a family focused sports restaurant concept out of Cincinnati with 17 units internationally and 49 domestic, has seen great success. According to Chief Development Officer Philip Schram, one major reason they decided to develop internationally is to show proof of concept and fuel further development both here in the U.S and overseas.
“A lot of prospects are looking for proof of concept and the fact that Buffalo Wings & Rings is traveling well both overseas and domestically is fantastic proof,” said Schram. “For example, going in the Middle East there is a much different culture, so you have to be confident your brand translates well. The fact that we are proving that we can maintain steady growth both domestically and internationally is a great sign to investors.”
International development may not be easy and may not be for everyone, but it is clear that this strategy has major upsides throughout a franchise system.
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