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Branding Queries: Successful factors for Franchising

Brian from Malaysia asks, I am considering to expand my successful Hair Salon in Australia. What would you say are the factors worth considering to take my brand to an International Market.

We answered, Thanks for your question Brian,

Success of franchising as a means of entering foreign markets depends on a range of factors, including:

•    International franchising should be viewed as a long-term relationship between franchisor and franchisee, based on ongoing information sharing, support and training, with a focus on the quality, not quantity of franchisees, which will help in carrying forward your brand’s Image.

•    Cultivating the relationship with the franchisee so it can remain as cordial as possible. Much depends on the relationship status and if inadequate attention is lacking in this aspect, it can severely test a business’s franchising plan in the future (Sugars, 2003, pp 121-122). Remember your franchising partner is in control of your brand in his country.

•    A distinctive and protected trade identity. Making certain that the brand is recognised in the target marketplace  will help (Sugars, 2003, pp 121-122). Help and support your partner to market your brand in his local market to distinguish your brand from the competitors.

•    Comprehensive training programs and ongoing support for the franchisee is a must. This may help you implement a consistent service globally.

•    A comprehensive set of legal documents that clearly define the relationship between franchisor and franchisee. Consult, or set-up a team of, a Lawyer, Financial advisor (both with an experience in franchising) and franchise consultant to make sure that all the legal documents are in place before franchising the business. Hire an experienced franchise solicitor to generate the franchise agreement (Sugars, 2003, pp 121-122).

•    Understanding of competition and threat of local competition development. From my stay and research in Australia, I reckon you will face a lot of competition from several hair salon operating on low pricing strategy and discounted treatments.

•    Setting up of your company’s mission, vision and core values, and  then ensuring that the franchisee acts as a strategic partner in the company’s ongoing expansion and development is extremely essential too.
(Sherman, 2002, Sugars, 2003)

Sources:

Sherman, A.J. (2002) ‘Fast-Track Business Growth: Smart Strategies to Grow Without Getting Derailed’, Kiplinger Books, Washington.

Sugars, B. (2003). Successful Franchising, Action International Pty Ltd, Brisbane

3 Responses to Branding Queries: Successful factors for Franchising

  1. Pingback: Branding Queries: Successful factors for Franchising IM Consultant

  2. Ed Roach Reply

    September 22, 2009 at 2:02 pm

    Brian,

    I’d add to Meheer’s recommendations by suggesting that you look at the cultures of the countries you intend on bringing your hair salon into. Your brand values should be ones that cross all cultures. In order to build relationships, understanding cultures would be great way to begin your international journey.

    Ed

    • Meheer Reply

      September 23, 2009 at 12:39 am

      Brian,

      I wouldnt dare to disagree with ED. Infact I’d rather add his advice on to the above list. Ed has over 25 years of branding experience to his credit.

      You may also want to go through examples of other companies who committed errors while entering foreign markets for various reasons. http://communications.webalue.com/category/branding-mishaps/

      Thanks ED

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