Before internationalize a brand, the franchisor needs to define markets of interest and a strategic plan for the entry of the mark in the international market.
After that, set the strategy to be applied to each market, as well as the company’s positioning and strategy of competition for each market. The company’s business plan should cover the first 5 years of operation in that country by setting Average Ticket, Billing average expected profitability of each store for owned and franchised stores.
Make a good Human Resource planning. Know of local labor laws, definition of suppliers and competition analysis, are very important.
Here’s a tip: Find out where they are installed its main competitors. They have already developed a supply chain that can easily be used by your company.
For those wishing to enter the Brazilian market:
– Brazil has great acceptance for international brands and positive economic indicators.
– The size of the economy and the size of cities favors the entry of new brands and the good results.
– Register the brand in Brazil.
– Register on the internet all the variations of the name brand (.com.br).
– Franchise contract to protect your brand and appropriated to Brazilian legislation. I suggest you contact a local lawer.
– Set a franchise fee for the exclusive territory (Master Franchisees), not exceeding three hundred thousand dollars. The franchisor must earn in Royalties and not in the franchise fee.
– In case of restaurants, assess local consumption to adjust your menu to the taste of Brazilian costumer.
– Open the second store only four months later to open the first store. After they the necessary adjustments for a good result are complete.
– Promote discounts on franchise fee (for franchised stores) 50% for the first 10 stores. Franchise fee low cost, facilitates the entry of brand marketing.
– Royalties on sales 5 % (sugestion only).
– The franchisor must not administer a fund for advertising. This fund is subject of much discussion and dissatisfaction Brazilian franchisees. However, the franchisee needs to invest between 2 and 3% by Local Store Marketing.
– Make a good financial evaluation of candidates for franchisees before signing the contract (I recomend).
– The representation of the company in Brazil should be lean in the beginning and grow with the company’s development in the country.
– Translate all manuals and adapting them to Brazilian legislation.
– Develop a completely training for the first store in the country.
– New stores should receive special attention in the first year of life.
– Prepare a local District Manager, who will be responsible for passing his experience to the franchisee and help it to manage your business, along with the maintenance of operational standards defining the franchise brand.
– The franchisee must be inserted in the company communications, even if the subject is not directly related to Brazil. A good integration of franchisees, generates commitment to the brand and facilitates business success.
Remember: The purpose of the franchise and be a successful business for the franchisee. The success of the brand in Brazil will be a consequence.
by 7ponto1 Franchising – São Paulo – Brazil