Since franchising is a method for the transfer of specific know-how from one enterprise to another, it lends itself well to international expansion. For franchisees this seems an obvious method of establishment a business, including export and echange de maison type of business.
Whether the activity in your country or is run by franchise or not, you can expand internationally with relatively little investment and without a large organization. While franchising is interesting from a recipient country’s point of view. It is a convenient and fast way to packed and ready to assimilate new dynamic business ideas and knowledge. Franchise companies are now among the first in the Baltic States and the former Eastern Europe.
Methods of establishment
When you go out into the world to start the business, you should carefully consider which strategy to choose.
Branches or subsidiaries
Joint venture
Master franchising
Direct franchising
Is your concept well enough?
Before you decide to export your business concept, you should ask yourself a few of conscience:
Is the business concept is really worth to export?
A franchise up abroad implies that there is someone there who is willing to pay. The business concept must in some way be unique, the product range on offer and demanded a total activity of such quality that it brings to the market something new. No one is willing to pay for something which it already is thirteen to the dozen.
Is the time right choice?
It may be more economical to take the time necessary to refine the business concept to completion, but to offer something that just is nearly finished.
Are we prepared?
A foreign establishment takes longer, requires more knowledge, costs more money and is more complicated than those establishments that were previously made at home. What can we do to not repeat the same mistakes as others before us? Take advice if you have any doubt.
Legal doctrine
When you venture beyond the borders of Sweden, one must be aware that there may be other rules to be observed. Although the EU is developing a Union, with reasonably uniform rules, we are still far from the target. In order not to miss any rules necessary to involve the law of the country to settle in, clearly. You should seek advice from someone who specializes in franchise law, so that the small important details will not be overshadowed.
Protect your identity
The most important measure – all categories – for those who intend to take their systems outside the Swedish borders, to protect their identity as much as possible. A lawyer by trade specialty can help with registering trademarks throughout the world. One should also keep in mind that even the brand will work in the country in which it intends to establish itself. Check therefore the brand to other languages.
Copyright – copyright
Manuals, which usually is the heart that is responsible for the circulatory system of a franchise system in Sweden has automatic copyright without any registration, provided the content is “originality.” Some other countries require that you clearly demonstrate in the material that you claim copyright. This is usually done by using the international symbol © for copyright.
Package Franchise
The package must include manuals and programs by which a single franchisee shall operate its business, knowledge and systems for the master’s activities are organized, and an agreement to pilot activities in one form or another is necessary for a new and untested market is many times proven.
Avoid the common mistakes
It is an often overlooked matter of course that one must first have ensured the survival of their own business, before thinking of also taking responsibility for others. Take others’ experiences. Do it right from the start. The most common mistakes are: misjudgment of the concept’s attractiveness, inadequate manpower, lack of finances, problems finding the right partner, underestimation of the need for information, insufficient preparation and too high expectations.
Now give not up for all the alleged problems. Development requires growth. Growth in franchising is achieved through expansion. Sweden is a small domestic market. The alternative markets are overseas. Franchising is a very suitable export method. EU membership to remove the practical obstacles.