Global Franchise Business 

The Pros and Cons of Investing in a Global Franchise Business 

Thursday 16th Dec 2021 |

Anyone seeking to invest in a global franchise business may be thinking that since the corporation is so large as to be global, profitability is almost guaranteed. 

On the whole, that may be the case. However, in order to determine whether or not a global franchise business is suitable for your area of the UK, there might be another question altogether. There are certainly a significant number of pros but are their any disadvantages? In trying to answer that question, you might want to consider the following information. 

Pro: Brand Awareness 

One of the main advantages of a global franchise business would be brand awareness. With a ready-made market, who could ask for more? There are probably few people around the globe who aren’t familiar with global enterprises like McDonalds, KFC, Dunkin’ Donuts, Burger King and even a curb store, 7 Eleven. If you are looking for a global franchise for sale, you might want to start with the listings by category on the Franchise Local website. This is where you will find a range of franchises for sale, some of which are internationally franchised businesses. The Franchise Local team also provide franchise seekers and franchise owners with a number of resources to help them thrive. 

Pro: Established Operating Procedures 

Another of the main benefits of a chain of franchises large enough to have gone global would be the strictly standardised operating procedures. Anyone who has ever started a business knows just how time consuming and frustrating it can be to establish standardised practices in both the front and back end of a business. Having all this done for you and waiting to be followed is an amazing advantage, making global franchises all the more appealing. 

Con: Limited Flexibility 

One of the main disadvantages of investing in a global franchise business is that you have limited flexibility in products or services you would like to offer within your market. For example, McDonalds has an established menu so you can’t very well create another menu item for sale. 

Potential Con: Royalties and Fees 

Unless a global concern is willing to negotiate royalties and monthly fees, the cost of running an international franchise may be beyond your reach. Whilst some international franchises are willing to negotiate fees, if not royalties, it may not make sense for the country in which you hope to operate. McDonalds, again as an example, is an American corporation. As such, their fees may be based on the economy of the United States. This may not be the case and is only used as a ‘possible’ scenario. 

With all that being said, if there isn’t a franchise location within your immediate marketing area, it may be a very good investment. However, you need to balance that with a ‘prediction’ of how popular those products or services might be where you plan to operate. Local customs may also interfere with what you intend to sell, so do take that into account as well. It all boils down to what you believe to be needed for a local franchise in your community. 

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