Cultural Differences: route to gain the best of international franchising

In the scenario of globalization and privatization, Global trade is driving the world economy by creating jobs and improving living standards in every country. They are thus strengthening the economy of India. Partners, allies and franchisees are supporting partners for such economy growth. They help impose new safeguards with regard to importing, exporting and best business practices. Read more

By Franchise India | March 12, 2012

International franchising requires proper analysis of the entire framework for it. Otherwise it can prove out to be tedious for any franchise company. Firstly, evaluation of the factors like the amount of time, effort, risk and legal proceedings related to selling a franchise internationally must be done properly by an organization. It should necessarily outweigh the benefits of franchising internationally. Secondly, the fitness of the product in the international markets should be analyzed

in a manner that it substantiates sales. Each unique culture should play a huge part in the evaluation process as well.

Existence of franchise regulations in many countries makes it more intricate. Australia, Brazil, China, France, Indonesia, Italy, Japan, Malaysia, Mexico, Russia, South Korea, Spain and Venezuela have their own specific regulations. In such cases, it would be unwise to decide to sell a franchise in a foreign country because the company has a great lead from that particular country. Rather it should be started by targeting a particular country or group of similar countries. The reason for the same is that each and every country does not offer similar platform for franchising operations. Sometimes penetrating into the market of a particular country becomes very difficult as compared to the other. Each has very distinct styles, language, regulations, working hours, cultural differences, currency differences and tax variations as well.

For the effective and efficient international franchising, one thing which should be followed by most of the franchise companies is to bend and change to the cultural experiences of each individual country. Each country’s culture rules with their own commonalities and thus in order to succeed- the franchises must adjust for the sales volume and personalization of the retail items.


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