Fast Casual: What Franchisors Need To Consider Before International Expansion

Domestic franchisors, whether running one location or 100 in the U.S., face a challenging journey in the quest to go international.

Expanding into a new country not only requires a strong business strategy but also involves a slew of legal steps and operations tasks from determining if the brand name is available to ensuring the new geographic site can support franchise requirements, according to Carl Zwisler, a principal at the legal firm Gray Plant Mooty. He and Attorney Jan Gilbert discussed international franchising during a panel session at last week's International Franchise Expo in New York City.

"The franchisor needs to have a global growth plan, establish a well-planned budget that encompasses everything from legal costs, local counsel, business registration to trademark registration as well as the travel back and forth in establishing the business," Zwisler said.

The lawyers said that a great deal of legal guidance is required in making an international move, especially if the language is different as translation costs regarding filings and contracts come into place.

"It's not just getting agreements but agreements in two languages that state the same thing," Zwisler said.