FranMENA

Our Experience

Market Knowledge

Between internal and external investigation, a franchisor should commit to gaining the clearest possible perspective about potential market opportunities before an expansion strategy can take shape.

Part of our knowledge involves gaining an understanding of the franchise "climate" in the targeted market (e.g., licensee's ability to sub-franchise, recognition by the legal system, the general feelings toward franchising, size of the middle class, degree to which other franchisors have been successful in the market, etc.).

Providing Support for Franchisees

The efficiency of providing support to franchisees is often a complex issue. Factors that will influence support needs and costs include the structure of the offer (area development, master franchise, or direct franchising), complexity of the business, the relative strength and resources of the franchisee, as well as factors such as language, legal differences, consumer differences, time zone differences, distance, and supply chain. Prior to expanding into international markets, the wise franchisor will first develop a comprehensive business plan that will cover these issues as well as develop a plan for staffing.

Understanding the Cultural Differences

Naturally, if concepts are destined to succeed in a new market, franchisors must give thought to adaptability. Just because a system performs well domestically doesn’t necessarily mean that consumers abroad will respond to it in a similar way. Language, local/regional customs, preferences, and even religious beliefs (dietary or alcohol restrictions, Muslim markets, need to plan around religious holidays or prayer time, mandated benefits or vacations in some countries, need to import labor, etc.) tend to shape the perspective from which target consumers will receive the brand. Thus, a solid understanding of local ideologies and expectations can help a franchisor modify its concept for a global public.

Forecasting Potential Profitability

Once a franchisor has a good idea of how the concept might need to be adapted, they should develop a financial feasibility model to determine whether the model is likely to be profitable enough to create a “win-win” for the franchisee and the franchisor.
Understanding the Power, Politics, and Economy of the new markets
A keen eye for the external factors that are shaping the current business climate in a country can be critical to forecasting success abroad. A country’s government structure, expressions of autonomy, respect for the rule of law, and political history can be indicative of its overall stability.

Understanding the Legal Climate

Considering the amount of time and resources an international expansion plan demands, it is in franchisors’ best interest to investigate the legal standards of the target market. What legislation is currently impacting the local business environment? In addition to franchise laws, the franchisor will need to be cognizant of laws regarding registration, disclosure, anti-trust, tying, anti-competitive measures, protection of trademarks and intellectual property, enforceability of in-term and post-term noncompetition clauses, repatriation of profits, import restrictions, taxation, and other relevant law.

Our Experience

• Grew small, unknown, and local brands into large, globally-known, and valuable restaurant chains multiple times. Helped franchisors go regional, national, international, and public on the stock exchange.

• Help franchisors structure franchise programs to suit the target market legal and business environment.

• Help franchisors understand how to sell franchises without making unlawful financial performance representations and without inadvertently offering franchises in states which require franchise registrations.

• Prepare and negotiate all forms of franchise agreements, obtain franchise registrations, and negotiate standard lease agreements with landlords.

• Register and protect trademarks and domain names and advise about the protection of trade secrets

• Introduce franchisors to U.S. based professional service providers who can facilitate the introduction of a franchise concept into the U.S.

• Establish business entities, raise capital, and tax planning Representative Matters (Our network of legal and accounting advisors).