GF_6.4

40 GLOBAL FRANCHISE | ISSUE 6.4 Why master franchising could be the perfect solution to your international growth Launching your brand overseas can be a huge step, but with these essential tips, you can avoid the hardship of unprepared expansion fter dedicating time and effort to creating a well- established, successful business in the United States, franchisors might start to think about other ways they can keep growing their brand. For some, the next step could be new product innovation, partnerships with other like-minded companies, or expanding to other countries. As CityWide Facility Solutions continues to hit major milestones, international franchising was the ultimate answer to the following question: how can CityWide spread a positive ripple beyond North America? To those brands that are ready to begin the journey towards international franchising, below are a few tips to help franchisors determine when is the right time and why they should choose master franchising. There is never a perfect formula Much like everything in life, there is no perfect formula to help determine when a brand is ready to begin franchising internationally. However, there are certainly a few aspects that should be in place before expanding. Franchisors need to have a trusted management team and the proper financial resources. One of the keyways to ensure this is to already be a dominant player within the industry you serve. It is a risk and much more of a monetary investment to begin expanding overseas when a brand has yet to establish itself in its industry. Potential franchisees in other countries will evaluate the success achieved in the home market to determine whether they want to invest in the opportunity. If a franchisor isn’t able to prove that prosperity, it will become very difficult to sell a franchise to individuals who are already unfamiliar with the brand. In the case of CityWide, there were several pieces in play that allowed for the launch of international franchising efforts. The economy is currently in the right place; the need for a single- source management company for various interior and exterior facility solutions is there; the corporate team is very capable of handling an initiative at this level; and the resources to execute on this long-standing dream are there. Ultimately, international franchising might not be the right path for everyone, but it is also hard to know if it is or isn’t when a brand doesn’t take the chance. A THE AUTHOR Jeff Oddo is the CEO and owner of City Wide Facility Solutions and City Wide Franchise, a leading management company in the building maintenance industry with nearly 70 franchise locations across the United States and Canada “Much like everything in life, there is no perfect formula to help determine when a brand is ready to begin franchising internationally” Benefits of master franchising One of the most crucial benefits master franchising provides is it allows the ownership group to be closer to the end user. This means the client or customer will be receiving the best service possible because the master franchisee has a deep understanding of the culture. It also gives an opportunity for individuals to spread and share the wealth and success of the brand themselves. For City Wide, this strategy fell in line with our longstanding philosophy of creating a positive ripple effect. As a franchisor, with master franchising, you allow other small business owners to live their entrepreneurship dreams, and support their own family, community, and local causes they believe in. Another important aspect is the master franchisee understands the legal and business aspects of their particular home country better than the franchisor. By partnering with the right individuals or company, it allows franchisors to maximize efficiencies and drive excess costs out of the system while giving the chance for both parties to focus on what they do best. The franchisor will provide the master franchisee with all the support they need and in turn, they can support their franchisees and clients/customers at a local level. It offers a win/win/ win situation for the franchisor, master franchisee, and client/ WORDS BY JEFF ODDO INS IGHT