Find a Franchise
Franchise Advice

 

"International Growth – Why Bother?" DC Strategy

International growth is an agenda item for board meetings of a growing number of franchise systems. At present, the international revenue for most franchise groups is very low, reflecting their early stage of development, and in many cases, the unsuccessful international results being achieved.

Any successful international growth strategy is a planned and detailed process as groups such as Boost Juice, PoolWerx, Gloria Jeans, Cartridge World, and Pack & Send would attest. In DC Strategy's opinion, many aspiring international franchisors are not addressing key issues, leading to poor results. These issues include:
  • The undercapitalisation of head office
  • Adopting a reactive rather than proactive approach
  • A lack of development of the international business model
  • Preparation of legal documentation based on a transition of Australian legal arrangements rather than the development of an international franchise strategy
  • A poor understanding of the target country and region
  • Insufficient consideration of the impact on the core business

With Australia representing less than 2% of the world economy the opportunity is obvious. For the uninformed, success in Australia can lead to the assumption that the franchise system is in good shape, a master franchise model is the best strategy, and developing legal agreements is the final key step before finding a person to sign. This is a stereotype that is difficult to break down, with the unfortunate consequence of the loss of potential value and numerous issues being created for another day. Given the opportunity, it only seems fair to develop a foundation for international that is proportional to the opportunity.

Contact Adrian McFedries at adrian.mcfedries@dcstrategy.com

DC Strategy is the region’s premier franchising specialist with an experienced and respected team of specialist franchise consultants and specialist franchise solicitors. As market leader our extensive practical experience ensures our clients have access to the latest franchising know how, outcomes, trends and developments to grow a better and more valuable business.

15-May-2008

Contact DC Strategy :
(all fields are mandatory)


Store my details for future Quick requests
Keep me informed of other related opportunities


More DC Strategy franchise articles

  • Targeting the masses – clever marketing or just spam? (27-Aug-2008)
    ...As electronic marketing increasingly supersedes traditional communication methods, businesses must be wary of the line between marketing and spam – or face substantial fines.The Spam Act 2003 imposes strict parameters on commercial use of email...
  • Recent Developments in NSW Real Estate law (27-Aug-2008)
    ...The Office of Fair Trading NSW (OFT) recently released a report on the level of regulation in the real estate industry to address the key issue of consumer vulnerability.  What are the implications of this report for business, consumers and...
  • The Other Sleeping Giant... Franchising in India (27-Aug-2008)
    ...No longer just the domain of street bazaars and roadside vendors, India provides seemingly limitless growth potential for franchisors. With many of the world’s premier brands competing to secure their share of the emerging Indian middle class,...
  • Motivation by Remuneration (27-Aug-2008)
    ...Motivating employees and influencing performance through incentives or profit share is increasingly common but frequently ineffective - not because incentives are a bad idea, but usually because businesses choose incentives which reward the wrong...
  • Remuneration Incentives – Simple but Ineffective (27-Aug-2008)
    ...The concept of skin in the game or variable pay structures is an area of business that is experiencing a renewed focus in response to the near full employment status of the Australian market and the increasing pressure on the fixed costs of...

More Legal Services articles

  • Good news for Franchisors (27-Aug-2008)
    ...The High Court has finally handed down its much anticipated decision in Master Education Services Pty Ltd v Ketchell. The Court unanimously decided that technical non compliance with the Franchising Code will not necessarily render a franchise...
  • Targeting the masses – clever marketing or just spam? (27-Aug-2008)
    ...As electronic marketing increasingly supersedes traditional communication methods, businesses must be wary of the line between marketing and spam – or face substantial fines.The Spam Act 2003 imposes strict parameters on commercial use of email...
  • Recent Developments in NSW Real Estate law (27-Aug-2008)
    ...The Office of Fair Trading NSW (OFT) recently released a report on the level of regulation in the real estate industry to address the key issue of consumer vulnerability.  What are the implications of this report for business, consumers and...
  • FRANCHISING MATTERS @ M+K (19-Aug-2008)
    ...Celebrating 100 years, Macpherson Kelley Lawyers (M+K) now employs over 100 people and is experienced in all areas of commercial law. Operating in Melbourne and Dandenong, M+K's Franchise Lawyers assist a diverse client base in all aspects of...
  • FRANCHISING MATTERS @ M+K continued... (19-Aug-2008)
    ...STATE INQUIRIES INTO FRANCHISINGFollowing on from the federal government's inquiry into franchising (and the subsequent changes to the Code), both the South Australian and Western Australian governments commenced their own Inquiries into...
1145 franchises listed