The global franchise market is in many markets as strong or even stronger than the U.S. franchise industry. Markets such as Eastern Europe, Canada, Australia, India all have thriving franchise markets. There is still something about the U.S. franchise market though that in many ways once a brand has been established in the U.S., it has in a way finally “made it” on the big stage.
The U.S. franchise market still is the biggest in the world and with an economy to support it, the U.S. franchise market generally presents the largest single market opportunity in the world. It makes sense to have the American franchise market as a target for growth as you scale your franchise model.
How do you franchise your business in the United States?
- Make sure your brand has been “Americanized”. U.S. franchise investors like international flavor, personality and character, but only to a point. Make sure your site, brand and messaging has been appropriately converted to the United States norms and positioned correctly for the U.S. consumer.
- Create a U.S. version of your consumer website and have someone familiar with American marketing build the message and presentation.
- Be flexible with your menu, service offerings and pricing structure so that your model is relevant for the U.S. franchise market.
- Be willing to bend on your first deals. The U.S. is a much more competitive franchise market than most countries and you’ll need to get some validation here before you can start selling consistently. We recommend offering a master franchise relationship, regionally that has been structured to create a compelling and exciting offer for the first U.S. franchise sales.
You need to establish a prototype in the American franchise market before you will be able to make much progress in the overall market. Why not give your first buyer a great deal instead of your brand having to take on the investment and time to open a company location in the U.S.? Many first time franchisors to the United States assume a master franchise will take on the country and handle responsibilities throughout the country. This isn’t realistic in most cases, the market is just too big and as a new U.S. franchise brand, you will be considered too new. Start organically and work with the first franchise much like an operating partner to help establish your footprint, then you can push harder and faster with the prototype in place.
For more information on how to franchise your business in the U.S., contact us: