Global Franchise 9.1

INS IGHT South Korean franchise group J S Holdings Group Ltd – owner of restaurant chain YORI – was exhibiting its self-service photobooth business Life4Cuts. The K-Pop-esque brand is rapidly expanding across Europe – having already opened booths in the U.K., it’s looking for more investors and is in the process of signing agreements in new markets, such as France. Irish food and beverage franchise, The Pantry, is also on the hunt for investors looking to take the successful café chain to the U.K. – following on from the gateway rhetoric. However, the investment opportunity here has enticed several investors in other markets such as the Middle East – a region that was also very much present at the event with brands including beauty business, N.Bar. WHY IS THE IFA SIGNIFICANT FOR GLOBAL BUSINESS? In 1960, American entrepreneur and founder of Dunkin’ Donuts established the International Franchise Association. At the time, it focused on the interests of U.S. businesses, particularly those looking to expand worldwide. While this global focus hasn’t changed, the organization has evolved to become more inclusive of businesses outside of the states. “Now, the organization has grown into an unstoppable global resource that advocates for and protects our members, their businesses, and the people they service around the world,” said Matthew Haller. This year was the first year the IFA was the exclusive title sponsor of the International Franchise Show. This move, according to Haller, was intended to further advance the future of franchising globally. However, the sponsorship has raised questions within the franchising community. What will this mean for various markets? Are we likely to see big hitters being ushered through to new markets more regularly? Could there be greater weight put behind calls for regulatory changes in regions outside North America? “As the world’s oldest and largest association representing franchising, the IFA is in the unique position to be the objective source of information for franchising at large, dedicated to helping the public, policy makers, and the entire franchising community with the resources and education they need to expand and strengthen franchising,” said Haller. It’s too early to tell what impact that the IFA’s greater involvement globally will have on the industry, but investors will be watching this space as the organization’s influence continues to manifest further afield. LEADING NATIONALLY AND GLOBALLY Taking the helm of national or global operations is the ultimate leadership test, especially when managing staff across various time zones, cultures, and locations. Tom Krouse, CEO at Donatos Pizzeria, doubled down on the importance of this for those looking to invest in multiple locations. “Leaders must learn how to focus their teams on the most critical strategic issues to ensure growth,” he advised. “Learning how to balance passion with the science of strategy is critical.” The CEO emphasized the need to combine soft skills with strategic tools designed to improve the chances of success for first time business owners, while outlining risk assessment, modelling, capitalization, and processes for scaling. “I hope visitors took away the importance of brand strategy, collaboration, humility, and perseverance as leadership characteristics required for national and global excellence,” he said. KEYNOTE SPOTLIGHT: FRANCHISING INTHE U.S. “CAN BE ADREAM OR ANIGHTMARE” Taking your franchise international requires a solid plan. DavidW. Oppenheim, shareholder at GreenbergTraurig, LLP, is the legal force behind some of the biggest brand’s entries into new markets. He outlines numerous franchise agreement models out there, but ultimately says his firm’s preferred method is area development agreements. Themodels he outlined were: Area development agreements Master franchise agreements Area representative agreements Unit franchise agreements Joint ventures Partnerships Company operations KEYNOTE SPOTLIGHT:WHATTOASKYOURSELF BEFORE COMMITTINGTOGLOBAL GIANTS Martin Hancock, managing partner atWorld Franchise Associates has worked with numerous international franchises in areas such as Malaysia and Dubai. He has seen first-hand what makes the best franchise partnerships as well as the realities of launching. He advised if you’re looking to bring an international brand to a newmarket (which will usually require you to open multiple locations) to ask yourself: Are you willing to put in the hard work? Are you willing to do some of the menial tasks? Will you enjoy running the business? Are you willing to follow the franchise system? Are you likely to be successful in managing a team? Can you afford the investment (an important consideration)? 52 GLOBAL FRANCHISE | ISSUE 9.1