The franchises or foreign brands that want to land in Colombia through a key ally such as a Master Franchisee, a multi-Franchisee or a Franchisee in Colombia, must take into consideration the Latin American culture and specifically the Colombian one. To be successful, they will need to try to identify and select the candidate they are looking for, with the right experience and capabilities, and therefore the sustainability of their franchise or license network in Colombia.

Below: the PROS (what to do) for licensors to do business in Colombia applying best practices:

1º. Provide the franchisee/ licensee with all the commercial, financial and business information so that they can analyze it and have a comprehensive knowledge of the operation, the operation of the business and the possible financial results before acquiring the franchise or license, and also during the operation of the same. It is important they have enough elements when selecting and buying the franchise to use the trademark to create it in Colombia.

2º. The foreign licensor/franchisor must analyze the Latin American market, and especially the Colombian market, in order to customize and adapt its products or services to the needs of the market, considering the characteristics of the Colombian population and its idiosyncrasies.

3º. In Colombia, trust is very important, so a good practice is to dialogue with potential franchisees/licensees about the franchise/license in a close and trusting way, generating a deeper personal relationship.

4º. Gifts are well received by Colombians; no matter the value of these, Colombians take into consideration a gift for the detail involved in buying it and giving it to them. It looks good to bring a gift to each of the licensees/franchisees with whom you are going to negotiate the franchise/license.

5º. A good practice to close negotiations is to always keep in mind that for Colombians the agreement depends on the personal relationship, a trusted bond that has been built between both parties. Colombia is a culture familiar with uncertainty, so the agreement between the parties is considered a personal commitment.

6º It is important to consider that haggling is common when doing business in Colombia and that an eventual and lasting profit will always be on the minds of Colombians when they are closing any negotiation.

Below, the CONS (what not to do) in best business practice in Colombia:

1º Being arrogant. Colombians value the knowledge of those who come from foreign markets, but they also want to feel equal. It is important to keep in mind that you must be as helpful, friendly and open as Colombians are.

2º It is advisable not to ‘despair’ if the Colombians are not precise in solving each of the points of the negotiation. This is a process that can take a long time to resolve, but it will continue during the negotiation.

In Colombian culture, not every aspect is usually specified, it is more of a global negotiation to start with.

Russia may win in terms of sheer land mass, but when it comes to franchising potential, the country’s story gets a little more complicated

Politically, socially, and financially, Russia is often viewed as a literal world apart

from what we’ve come to understand as western culture. This could be due to the fact that Russian culture and news isn’t widely publicized in the West, which extends to the current positioning of its burgeoning franchise industry.

You may be surprised, then, to learn that past its mysterious exterior, the Russian franchise industry isn’t just similar to

what can be found in the West; it arguably borrows many lessons and best practices from the market, too.

A business behemoth

Before we dive deep into what franchisors and entrepreneurs can expect from Russia’s business landscape, it’s important to understand what kind of country we’re dealing with in the first place.

Russia is almost double the size of the U.S., and covers a whopping 17 million square kilometers, making it the largest country in the world. Russia is so large, in fact, that its surface area makes up one-eighth of the earth’s total. Across that vast expanse are around 144.5 million people, situated in several key cities around the country. The capital, Moscow, is home to roughly 12.7 million residents, and is often regarded as one of the main franchise markets within Russia.

To ignore Russia’s other large cities would be a mistake, however, and these include St. Petersburg (with around 5.5 million inhabitants), Novosibirsk (1.66 million), and Nizhniy Novogorod (1.25 million). In total, Russia has 12 cities with over one million inhabitants, and a further 201 smaller cities that contain between 100,000 and one million people. As expected from a country so large, the on-paper opportunity for franchisors in Russia stretches as far as the eye can see – and then some. Russia’s franchise industry was first established in the early 1990s, following the collapse of the Soviet Union.

“You may be in demand and trendy in somewhere like the U.K., but because nobody knows you in Russia, it’s all about providing value”

Despite the past decade seeing considerable instability in the Russian economy, the country’s franchise industry is estimated to be worth around $7.5bn, and consists of roughly 1,450 different franchise brands; with more than 50,000 individual franchisees operating in Russia. 65 per cent of brands within the country are of Russian origin, and of the remaining 35 per cent, nearly half of that figure is comprised of U.S. organizations.

The universal appeal of the golden arches

Many of the franchises currently operating in Russia could be considered relatively young, with 45 per cent having been established in the market for less than five years.

There are of course some notable outliers of this trend; namely, the brand that arguably started it all: McDonald’s. Known as the first major success story for franchising within Russia, McDonald’s was introduced after a partnership between the Moscow city government and the brand, which saw the government take a 49 per cent stake in the Russian entity.

McDonald’s launch in January 1990 was something to behold, and saw more than 30,000 people queuing around the block from 4:30 am to get their first taste of American fast food.

Unlike other U.S. concepts that have come and gone since then, McDonald’s remains a popular investment choice in Russia and has seen exponential growth in the 30 years that it has operated.  Just  this year, in fact, the organization announced that it would open new locations in Russia’s far east in December 2020, in cities such as  Khabarovsk and Vladivostok for the first time. With these openings, McDonald’s hopes to launch its 800th site in Russia; showcasing a true success story of a foreign brand within the country.

But proven success in the U.S., and even a wider international market, doesn’t always guarantee prosperity in Russia. Square burger favorite, Wendy’s, encountered this in 2014 when it announced that it would be closing all eight of its Russian locations. This announcement came only four years after Wendy’s first entered Russia, and at the time, the brand planned to open 180 locations throughout the country.

With the announcement of these closures, a spokesperson for Wendy’s told Bloomberg that its Russian franchisee “has not expressed interest in growing Wendy’s business in Russia, nor have they shown that they have the resources to successfully operate the existing restaurants on a long-term basis.”

Gary Chaglasyan, the World Franchise Associates’ Russian representative, emphasizes the need for caution, and not letting the success stories of brands like McDonald’s cloud strategic thinking: “A brand could be huge in your country, but in Russia, nobody knows about it. You may be in demand and trendy in somewhere like the U.K., but because nobody knows you in Russia, it’s all about providing value. Brands should definitely think about promotions and marketing before entering the Russian market.”

Local success story

So what kind of approach works well in the Russian market? If Wendy’s struggled to gain a foothold half a decade ago, what could the brand have done differently today to instead prosper and develop throughout the region? The answer can be found in a local Russian pizza chain, which has used this past decade to exponentially grow; both within Russia, and in 13 countries around the world.

Franchise World Link Colombia will be present at FranquiShop, the franchise fair of Spanish origin, with a previous appointment format, will land in Colombia for the first time on April 23, 2020, after its success in 2019 in Guatemala and Panama.

With a past experience of 50 editions held in Spain, this fair is presented as a useful means for franchisors to make their brand known to suitable Master Franchisees (buyers of Master franchises) in Colombia.

Candidates / Investors interested in a master franchise, can schedule an appointment of 30 minutes, resulting in scheduling approximately 16 appointments on average by brand with potential investors.

However, the way in which potential master franchisees can obtain information about a franchise is not only through scheduled appointments, since they can pre-book and enter the venue where the fair is held at no cost and meet the exhibiting franchisors.

According to Adriana Rivera, Country Manager for Franchise World Link in Colombia, most people interested in buying a master franchise or a multifranchise in Colombia, try to attend the franchise events or investment events that take place in Colombia and that are usually in the cities of Bogotá, Medellín and Cali.

FRANCHISE WORLD LINK Colombia will be present at the Fair presenting to investors a variety of international master Franchise options through Franchise World Link network, that are wishing to enter Colombia.

This is the case for example, of the iconic Belgian chocolate brand Quetzal “Chocolate Bar”, or the case of the UK food chain German Doner Kebab “GDK” that has more than 250 franchisees in various countries of the world.

750 USD dollars is the value of the investment that will be charged for the companies / brands that attend the fair, while for those interested in buying a master franchise or seeing the available franchise offers, the entry to the fair is free of charge.

For more information, please contact:

Adriana Rivera
Country Manager Colombia
Franchise World Link
Carrera 68C # 96-68.
Bogotá, Colombia.
Tel: + 57 3102722993
Tel: + 34 619 673 153
Skype: adriana_rivera

General overview

In Russia, franchising started in the early 90’s, primarily due to foreign companies. Straight after the collapse of the Soviet Union came such brands as” Kodak”,” Xerox”,” Baskin Robbins ” and others.
The first foreign franchise was the Baskin Robbins Corporation, which continues to actively work and develop today.

Foreign franchisors in their activities in Russia use two schemes. In the first case, the parent company is located abroad, and its special representative works in our country. According to this principle, the American company Subway Russia, which is headquartered in Nevada, sells its franchise. All decisions on granting a franchise are made by the American office, and royalties are transferred to the same checking account on a monthly basis. Russian subway franchisees also receive trade equipment and necessary materials from America.

In the second case, the foreign company sells to the Mastrer franchise of a Russian company. The owner of the Master franchise receives broad powers and responsibilities: he implements the franchise on the territory of Russia, conducts training for the staff of partner companies, controls their work and receives royalties from them. The owner of the Masrter franchise transfers a certain amount of payments to the franchisor. Such a scheme, for example, was chosen by Kodak, entrusting its network to the Russian LLC “Kodak“.

Currently, the Russian Federation occupies a leading position in the world
rating on the growth of the number of franchising companies. Many of them have become not just recognizable brands in the world, but has familiar attributes of reality: “”, “Pyaterochka“, “MegaFon“, “Pharmacy 36,6“, “FixPrice“, etc. If we talk about the structure of Russian franchising by industry, the most franchises account for trade in consumer goods and services.

It is noteworthy that franchises in Russia occupy 62% of the domestic franchise market, the average of about 45% are young companies working in this field for less than 5 years, which indicates a growing interest in this method of organizing business relations. The reason for this interest, oddly enough, was the crisis of 2014: business owners are looking for new ways to generate income. There is another reason: big players who have created their own networks over 10 to 20 years are tired of operating management, are ready to share their experience and build their own business model.

Today in Russia there are about 1450 franchise brands and more than 50,000 franchisees. Estimated market volume at $350-500 million – a big amount, but the United States, the birthplace of franchising, is still far away.

During the first four years of using the franchise business model (from 1995 to 1999), 42 franchising company appeared in Russia, that is, approximately 10 new franchises per year. By 2018 their number has increased more than 50 times.

Experts attribute the slowdown in market growth to a drop in the activity of foreign franchisors in Russia. The trend is that companies that entered the Russian market before 2015 are actively developing now, while new companies almost do not appear. Moreover, many franchisors began to make decisions about geographical expansion more carefully, they carefully choose partners and work exclusively on incoming calls.

Nevertheless, due to its availability in the context of the changing Russian economy, franchising continues to be one of the most promising business formats in Russia. The turnover of the franchise market in Russia occupies a significant share in the country’s GDP, for 2017 it amounted to more than 3.5%.

Russia is among the world leaders in terms of the pace of franchising development. In terms of the number of franchising points last year, Russia was ahead of Germany, showing a result of 74.6 thousand points.

The experience of 2008-2009 showed that the crisis only contributes to the development of franchising.
The study of ratings of popular and profitable franchises allows you to identify several trends in the franchise market:

– Increasing the importance of social networks and online communication. Traditional marketing is becoming less relevant, and consumers are increasingly using websites and social networks to interact with the company and its brand. Online communication is a tool for providing better customer service and a source of feedback.

– Growth in the number of multi-brand franchisees. Many franchisees have started buying several franchises at once, citing the fact that such actions help to improve cash flow in the long term.

– Increasing the number of franchises in the Health and Education categories. The results of sociological research show an increase in people’s attention to their well-being and achieving a high level of health and education.

– Increasing attention to customer focus. The goal of the entrepreneur is not only to create a popular product, but also a flexible solution adapted to a specific request. For example, there are business models in the market that allow a customer to create their own hamburger by adding ingredients and choosing the order in which they are served.

– Growing popularity of on-demand products and services. Consumer preferences change very quickly and are influenced by new market trends. An entrepreneur who effectively organizes his activities, analyzes the market dynamics, monitors current changes and offers clients the solutions they need.

According to the rating of Forbes, it has formed a list of the most profitable franchises for 2018.

As a rule, from the rating, one of the most expensive franchises-catering points. They have become much more in recent years, they occupy 35 -37% of franchising in Russia. This trend is clearly visible in the first group of the rating, where 5 out of 10 participants — restaurants, pizza’s, cafes. Opening a food franchise costs an entrepreneur an average of 10-15 million rubles.* And it does not matter whether it is a Russian brand like “IL Patio“, or an international one like Papa John’s. Revenue from one point-from 30 million rubles, but the payback period is about three years, and the profit is at the level of 10-12% per year.

The main franchises that are in this rating are also franchises for the provision of medical services. This is a direction that has managed to take about 3% of the market in a few years. The total number of points of the main players is about 2200, and most of them are franchised.

Another segment — retail franchises-includes clothing, furniture, FMCG and DIY stores.

Education and leisure for schoolchildren and preschoolers is another important area.

There are five such projects in the rating. And each of the groups has its own leaders. Thus, the opening of a bilingual kindergarten “Sun School” will require 7.5-10 million rubles. Among the franchises with average investments-the school of speed reading and intelligence development “IQ007“, the investment in the opening of the point is 1.4 million rubles. During the year, the company has almost doubled (to 418 points on the franchise), the average profit of one school — 11 million rubles. The payback period is six months, the profitability of the business at the level of 50%.

The profitability of children’s sports sections is even higher. The rating included two football schools for boys — “champion” and “Junior”. You can open a school with 500,000 rubles in your pocket. The franchisor promises a payback for
the same six months. The profitability of such a business is 80-90%, hence the furious dynamics of development. Their peculiarity is that they are growing within the regions, so they do not compete at the Federal level with each other.

Thus, more than 40% of world trade is carried out through franchising networks. A well-developed trading network is increasingly becoming an advantage in the competitive struggle in the market. The franchise business model has proved its effectiveness in Russia and continues to develop rapidly due to a significant degree of survival of franchise enterprises. According to forecasts of the Russian franchising Association, by 2025 in Russia will operate about 400 thousand points of sale of goods and services managed by franchisees. Today, experts count only about 40 thousand franchising points in the country.

Problems of franchising development in Russia

Recently, foreign companies have shown increasing interest in the Russian market, in terms of launching franchising enterprises in our country. At the same time, the development of franchising in Russia is not as fast as it is potentially possible, because there are a number of obstacles that cause this process to be delayed.

The main problems that hinder the development of franchising in our country can be classified as follows:

Economic problem

– Lack of economic prerequisites for development. Franchising is an economic tool. For its implementation, appropriate economic prerequisites are necessary, which in Russia have not been formed either at all or partially.
– Instability of the Russian economy. The last decade, in which the accelerated development of Russian franchising began, is characterized by a lack of stability in the economy, constant jumps in the development of the country’s economy, which leads to the same sharp fluctuations in demand for all types of goods, regular redistribution of property, which can not but hurt the franchisee.

– Lack of the majority of potential franchisees-the necessary start-up capital to enter the franchise system. Given that many of them are forced due to lack of their own funds to open their businesses in rented premises, the change of ownership has a negative impact on the work of both the franchisee and the franchise system as a whole.

– Difficulties in obtaining loans to create start-up capital. Franchising, as has been repeatedly noted, is based on the interaction of two types of independent entrepreneurs-the franchisor and the franchisee, each of which is an independent legal entity. Therefore, not only the franchisor, but also the franchisee should invest their starting capital in the development of the system.
If you consider that the franchisee must pay a one-time franchise fee (lump sum payment), the starting capital of the franchisee must be large enough.

Unfortunately, not all domestic entrepreneurs have such capital. Attempt to obtain start-up capital in the form of Bank credit also faces a number of challenges: the level of profitability of franchisees, taking into account all regular payments (royalty payments to the centralized advertising Fund and other fees), can lead to the fact that the repayment period is large enough, and given current rates of the loan, not impossible; the existing legal system further complicates lending to franchisees.

– Lack of legal support for franchising in Russia. The most important problem, which is recognized by most experts, is the lack of an appropriate legal framework in the field of commercial concession, the rules of which are set out in Chapter No 54 of the Civil Code of the Russian Federation. There are several main weaknesses of the document, which reflects the main principles of the commercial concession.

The possibility of one of the parties to terminate the agreement by simply notifying the counterparty six months before the termination of the contract.
The need to register a franchise agreement by the body that registered the right holder, which is the franchisor.
The preservation of the contract of commercial concession in effect in that case if one of the parties changes.

Experts note that the development and implementation of the legislative act “on franchising” will help to resolve these contradictions and outline real prospects for development. Without certain laws, the franchise will not work in full force. In addition, there is a need for strong state support for projects related to the inflow of foreign investment

Social and psychological problems

– Lack of domestic experience and fear of failure in the subjects of the franchise system-the franchisor and franchisee.
– Fear of franchisees losing their independence and their own “face” of the entrepreneur and manager.
– Lack of due respect for intellectual property.

Educational problems

A special place among the problems of franchising is occupied by education as a mechanism for resolving social and psychological problems. This problem is caused by poor training of small businesses in the field of franchising. It is important to say that this problem is already being studied and the state is opening programs to inform and familiarize potential franchisees with this business model.
These problems need to be considered and analyzed in a complex, because they are all interconnected and strongly affect each other. For example, the economic problems of franchising are caused not only by the state of the economy, but also by the influence of other problems, primarily organizational and legal.

The absence of a legal framework significantly narrows the possibility of franchising development and, first of all, significantly complicates the possibility of lending to franchisees. The development of legal support for franchising requires again solving economic problems and additional costs for improving the legal framework. Socio-psychological problems are related to both economic and legal problems. Entering the franchise system, the franchisee has a number of concerns caused by both economic and legal aspects. First of all, he is afraid of bankruptcy, which may be caused by the actions of the franchisor. But it is the legal component that should reassure the franchisee: he is the owner of his company, a legal entity, which should be confirmed by the necessary legal procedures.

Summing up the analysis of the problems of franchising, we should once again say that there is a fairly wide opportunity for the development of franchising in Russia, but it is necessary to create certain conditions for its implementation.

  • First, it is necessary to create a regulatory system of acts to fully regulate franchising.
  • Second, to include a franchising development program in the government’s small business support program.
  • Third, create a system of tax incentives for franchisees, especially at the initial stage of development of the franchise network.

In addition, it is advisable to provide the possibility of applying a simplified accounting system to franchisees. It is also necessary to create and implement a network of training and consulting centers for franchising throughout Russia.

At the moment on the territory of Russia carry out the activity following a franchise centers:

-The Russian franchising Association;

-Russian Association for the development of small and medium-sized businesses;

-Federal Fund for support of small and medium-sized businesses;

-Moscow small business support Fund;

-Foundation for the development of science, technology and franchising.

– Franchise World Link

This shows that in our country, special attention is paid to the development of franchising.
Despite such difficulties, the franchising system is spreading steadily on the territory of Russia, and the pace of development of franchising in Russia is among the world leaders.

The growth of franchising models that work in the field of production franchising is noticeable. Legal norms regarding franchising activities are also slowly but surely brought into line with international standards.

Also, this model is the best fit for the Russian market, where competition and brand promotion play an important role. With the help of franchising, you can open obviously successful stores, restaurants, service centers, as well as many other things that are in demand not only in Russia, but also around the world. At the same time, not only a single point is developing, but the entire network as a whole, which allows you to leave only successful and competitive companies on the market

Franchising opportunities in Russia

Speaking about the prospects for the development of franchising, we can highlight the following features:

Development of franchising in the regions of the country

Although the Russian franchise market is characterized by an uneven distribution of business, as usually only after the introduction of their projects in the Moscow or St. Petersburg markets, businessmen begin to promote it in the regions. Nevertheless, the direction of development towards regional franchising has already been set. Experts recommend paying attention to the development of franchising in Nizhny Novgorod, Samara, Rostov-on-Don, Perm, Omsk, Vladivostok and other cities.

But first you need to conduct a “literacy campaign” to engage in training programs. Realizing the prospects for the development of franchising, the authorities intend to engage in active training of businessmen in the basics of this business. We intend to spend considerable sums of money for these purposes.

Expanding the boundaries of franchising

Franchising becomes a real tool for bringing the economy to the world market, but at the same time the condition that created the package offer. Franchise should mean not only permission to use the brand, but also a certain set of services that accompany the business. As an example, can serve a franchise for the production of aircraft “Bombardier”. The French sell not only service, but also airports and destinations.

Development of existing companies in a new direction on the terms of franchising

In this situation, it is not surprising that in the near future it will be possible to open branches of “Russian Post” by private companies on the terms of franchising. Innovations are provided by the draft law “on postal communication” will allow “Russian Post” automate delivery terminal networks, the franchising scheme of post offices is successfully used in European countries. The operator itself manages 10% – 20% of all branches, while the rest are open under contracts with chain stores and individual entrepreneurs.

Women’s participation in the franchise business

As you know, women are excellent leaders, and are able to maintain self-control even in the most stressful situations. Thanks to the emergence of such a business model as franchising, the number of women in the business sector has increased several times.
The appeal of franchising for women lies in its basic principles, which allow a polished entrepreneur to start his own business under the care and close supervision of an experienced partner who has a huge interest in the financial success of his precious franchisee (franchise owner).

The international Franchise Association has been conducting research and monitoring of the franchise market for more than a decade. According to statistics, over the past five years, the number of women who own a franchise has increased by 43%. Unfortunately, the main part of the growth is accounted for by foreign countries.

In Russia, the situation is somewhat different, since the process of emancipation of women is just beginning. However, positive changes are already visible to the naked eye.

For many women working in business, franchising is not only a great business model, but also an information platform that allows you to get the necessary data and support. This fact largely explains the popularity of franchising among women.

The discovery and isolation of new market niches for the development of franchising

According to a special study, the services sector will continue to specialize and identify new market niches. Services such as home renovation, interior design and implementation of design projects, lawn care, housing services, child care, parenting and education services, along with some types of business services will be the most preferred for the application of franchising. There are active processes of mergers and acquisitions, in which small networks are combined with each other, but eventually absorbed by the business giants.

Franchising as an incentive for innovation

Considering the requirements that are imposed on franchisees, we can say that they increase the personal capabilities of entrepreneurs, their professional knowledge, which in General contributes to the spread of innovation both within a particular franchise system and in it. On the other hand, the expansion of almost every major franchisor and, as a result, increased competition entail the need to develop and implement innovative business standards by local businessmen, who are forced to adapt to a new level of quality.

Many entrepreneurs, when there is competition in their region, are faced with the need to use innovative methods of work in order to further be able to develop their business projects.
In conclusion, it should be noted that, of course, there are a number of reasons that hinder the development of franchising in our country, but, despite all the identified problems, it remains the most reliable option for business organization in the market system. New trends that are emerging in the franchise market will help bring this form of business organization to a new level.

Franchising as a new way of organizing business in Russia

Currently, much attention is paid to helping small businesses to find new areas of development, as well as those who are still thinking about opening their own business. Many entrepreneurs claim that their business is not only a dream of independence from their superiors and the transition from salary to profit, but also the pleasure and pride of creating something unique. Sometimes, one idea is not enough to start a business, because, as you know, not all budding entrepreneurs, trying to start a business without any platform, were successful. In this regard, we can safely say that the choice of form for the development of your future business plays a very important role.

Today, one of the most popular forms of business organization are startups and franchises.

*Note current exchange rate on 13/01/2019 is 1USD=61,26RUB

Should you be interested to open a business in Russia we are here to serve your needs.

Vitaly Sorokin
Area Director Russian Federation
Franchise World Link
Moscow, Leninsky pr.85
Tel: +7(926)537-72-51
Skype: rainbowtrout7



Franchising in the United Kingdom is quite convenient as compared to different countries. United Kingdom offers a big platform for businessmen and companies to come and grow their organizations in the United Kingdom. Brands like McDonald’s, Dominos, Costa among many other brands and corporations have many franchises in the United Kingdom and the number of brands entering the UK is growing.

UK Economy

Let’s take a look at the economy of United Kingdom. United Kingdom’s economy is the fifth largest economy in the world. Over the past few years the economy of United Kingdom is growing rapidly, Franchise Brands are playing a huge role in the economic growth. Let us not forget the tourism industry which plays a huge role in the economic growth of a country. The United Kingdom is the world’s 6th tourist destination with over 40 million tourists visiting the UK in 2018. All these industries are creating loads of jobs and boosting the economy of the United Kingdom. Another big market is the labor market. The labor market has been one of the strongest elements of the United Kingdom economy in recent years with employment rate at a record high. The employment rate for women and older workers has grown immensely. There is still further room for improvement but their economy is still really strong. GDP is valued at 2.828 trillion dollars as per the results of 2018.

Franchise Market Overview
According to 2013 British Franchise Industry Report, the franchise industry contributed $21.9 billion to the economy. In 2012 there were 930 franchise systems in the United Kingdom with 37,300 franchise units. Franchising operates in nearly all sectors and is highly diversified. The United Kingdom market is mature and sophisticated. To succeed here. To succeed here, a company should offer a concept that is truly unique and different from all the concepts available in the market.

Now that we have discussed the economy and brief history of the economy of the United Kingdom, let’s discuss what kind of opportunities Franchise World Link in the United Kingdom provides for franchising and growth of the businesses. Businesses that are looking to franchise their business in the United Kingdom will find out that the market is robust and friendly to franchise systems in general. There are a number of laws that govern the operations of franchises within the EU, but these laws are broad but generally do not constrain the competitive positions of the businesses. The United Kingdom has no specific laws governing franchising. There are an estimated 48,600 franchises in total in the United Kingdom. This figure shows how big the franchise market is in the United Kingdom. This can turn out to be an advantage for new entrants in the franchise business as there are a lot of opportunities to grow. But we have to keep the fact in mind that entering and succeeding such a huge market is not a piece of cake. Yes, there a lot of opportunities but to take those opportunities at the right time and succeeding is not easy. However, the companies that demonstrate a commitment to the market and perform adequate research into their industry will do well in the United Kingdom. Making the appropriate approach will reap highly rewarding results.

There are two main categories in franchising, one is Retail and the other is Service. When considering the opportunities in the United Kingdom market we have to keep in mind these two categories. Retail or Service. Retail franchises are hallmarked by their need for significant physical trading premises while Service franchises have a limited (if any) need for a physical location. The most common examples of Retail franchises include fast/fast casual food, restaurants, bars/pubs, and hotels. Examples of Service franchises include education, management, employment/training, professional and IT services, and domiciliary care. As they entail physical property with fixtures and fittings, Retail franchises require substantially more investment and thus carry higher risk. Property rents are high, and London property prices can be prohibitively so. Successful routes to market for incoming franchise systems include pilot locations, joint ventures, regional chain takeover, and partnership/colocation with an existing United Kingdom franchise.

United Kingdom lenders will not fund a system that is unproven in the United Kingdom market. To secure funding (typically 50%), lenders will require solid business plans, based on the results of a UK pilot or pilots. It is important to note that the market in London is substantially different from other United Kingdom cities. A pilot’s performance in London may not accurately indicate trends for the entire country. If a Retail franchise intends to trade outside of London, the pilot location(s) selected should reflect this. Service franchises, which have a limited physical property requirement, have a substantially lower cost of initial investment than Retail franchises. As such, Service franchises offer a higher probability of success and more opportunity for franchise systems. When seeking a United Kingdom master licensee, systems with a specific, targetable candidate profile will have a better chance of success. Franchises that have advertised in the United Kingdom national press have also experienced higher rates of success, as they have reached a larger potential candidate audience. Due to the high cost of recruiting unit franchisees, high cost master franchise licenses are likely to fail. The conversion rate for unit inquiries to investment ranges from 1 in 50 to 1 in 200. To support and encourage master franchisees, an emerging trend in the market is to spread the initial franchise fee over several years or as each unit is recruited. High upfront costs will deter investors and will negatively impact a master franchisee’s ability to enter the market and grow the brand.

According to the results of 2018, there are 48,600 franchises working all over the United Kingdom. These franchises are contributing over £17.2 billion and 710,000 jobs to the economy. Below are some of the top franchises in the United Kingdom:

How will Brexit impact the United Kingdom franchise industry?

Brexit has created some uncertainties in the minds of the customer. But the franchisors are confident that they will stop their customers from having second thoughts about their franchises after Brexit.

Another major discussion around Brexit is how it will affect the supply chain of the franchises. They are still not sure what terms will be decided upon around the free movement of goods from Europe to the United Kingdom. It is expected that import duties will be imposed on UK products and if any of their product is sourced from Europe, they will have to pay more. This means if any of the franchises are doing this, they need to find alternatives.

So, to say if Brexit will have a positive impact on franchises or a negative impact is still hard. The evolving situation will answer all our questions regarding the impact of Brexit on Franchises.
Franchise World Link helps franchisors finding country masters franchisees internationally. We connect investors with franchisors, we operates internationally with more than 20 offices, covering a total of 45 countries, with a strong presence in Asia and Africa.

Anwar Uddin MBA
Country Manager UK
Franchise World Link
Unit7a, Radford Cres, Billericay
England, CM12 0DU
Tel: +44 7887852732
Mobile: +44 7887852732

I am a Japanese man, living in Madrid, Spain. This Autumn, I had an opportunity to visit Tokyo. The seasonal flowers were blooming and they were sharing their great aroma with all parts of the nation’s capital. It was great environment to walk under excellent weather. I walked about 15 km everyday and could see the city inside out. The most impressive part I witnessed is that Tokyo became a truly international city; a number of foreign visitors are walking, not only tourist but also people working in Japan. At hotels and stores, receptionists were speaking English very well to serve customers. They used to be in panic when they had to help non-Japanese speaking customers but it is a completely different story now.

In addition to the people, a lot of foreign franchise businesses had been seen in the largest city in the world. Starbucks is having wonderful business there. The stores are packed everywhere. Especially, Starbucks Reserve Roastery Tokyo was an amazing place. This upgraded version of Starbucks exists only in Seattle, New York, Milan, Shanghai and Tokyo. The Tokyo store is the biggest among 5 stores (32,000 square feet) and has 4 floors. They roast coffee bean at the site, distributing great coffee aroma in the 1st floor with the coffee bar. This floor even has a bakery carrying products could go with coffee. 2nd floor is for TEAVANA, Starbucks’ tea brand. The tea bar was very sophisticated. The 3rd floor has a bar so that people can enjoy cocktails! A coffee bean packing machine and patio were at the 4th floor. I had their special filtered coffee and salami sandwiches with focaccia. The sandwiches were one of the best I ever had! Even for a person living in South Europe! No wonder that Starbucks boast over 1,400 stores in Japan. Starbucks used to have a partner in Japan. However, Starbucks HQ purchased their business in 2014 because their business was more than excellent. At that time, the sales were approximately $1,200 million and had approximately 1,000 stores. Other than the American coffee chain, I saw a lot of Taiwanese bubble tea stores such as Goncha, gourmet hamburger restaurants such as Shake Shack and European bakeries such as Paul. Clearly the foreign brands are establishing great names in Japan.

On the other hand, Japanese cultures are booming outside Japan. Especially the foods are being a standard chaice. Ippudo, a ramen restaurant franchise, is creating ramen boom in the world, opening the stores in all over Asia, the US and Europe. Coco Ichibanya is spreading Japanese style curry in the world and they will open even in India shortly. In the world of sweets, Beard Papa’s cream puff stores boast more than 200 stores outside Japan and Bake, a cheese tart store, is also opening the stores in many countries. It is not rare anymore that Japanese stores are having long queues. An interesting point is cream puff and tart are not originally from Japan. They enhanced products with their unique touches, as they did for electronics and cars. Other than foods, in the world of fast fashion, Uniqlo has about 1,400 stores outside Japan. In education, Kumon has more than 4 million students in 55 countries in addition to 1.6 million students in Japan. Needless to mention animations and games.

Japanese economy is 3rd largest in the world and the population is over 126 million. Tokyo, 13 million+ population, is the biggest city in the world. Franchise businesses are very active in Japan; 1,300+ franchise businesses have 260,000+ stores. Japanese service level higher than any other countries. In terms of services, they would improve the franchise systems. If you visit McDonald’s or Starbucks in Japan, you would know what I mean here. You would learn a different point of view through having Japanese franchise business in your country. Expecting Tokyo Olympics in 2020, Japan is international more than ever. It is time to have your brand in Japan and have a Japanese brand in your country.

Interested? Please contact Akira Okura at

Concepts from abroad often make franchise candidates dream about a new franchise concept for their own country. But one must study their chances of success in France.

You want to sell American burgers, Belgian waffles, Spanish tortillas? It’s time to think about it. After the American Steak ‘n Shake (in 2015) and Five Guys (in 2016), the Canadian franchise Copper Branch arrives in France with its fast-food vegan! As for waffles, the Belgian Waffle Factory has set up its first retail shop in France in 2018, such as the Spanish tapas network “Cañas y Tapas”, or the Italian decoration brand “Coincasa”. All recruited franchisees with the firm desire to replicate their success with the new franchisees. But before signing with a foreign concept, as attractive as it is, you have to make sure you ask the right questions. All of the new brands will not know the wonderful successes of the American Mac Do or the Spanish Mango in France.

Is the the franchisor solid enough?

“Personally, I will never accept to be the first franchisee hexagonal if the franchisor seats far, because my royalties will never cover the cost of the of a franchise coach in France”, asserts David Borgel, Country Manager France of Franchise World Link.

Samuel Burner of “L’Observatoire de la Franchise”, confirm the points of this international specialist.

“It’s important to have easily accessible referents.” It may be a French subsidiary, or a master franchise, a company that has bought the right to operate it at home.

“Even if legally, driving from abroad is enough, it is good that the master franchisee has opened his own test retail shop,” says David Borgel. Nor should it embark on an all-out expansion in the hope of fulfilling the objective clause which obliges it to ensure xxx numbers of openings per year or to pay so many royalties to the headquarters.

“He must also have the means to accompany you as foreign franchisor,” adds Charlotte Bellet, a lawyer at BMGB.

In what extent has the concept been locally adapted?

“What is your knowledge of the French market?” These questions are needed during talks with a foreign franchise network.

“The franchisor must know the typology of French cities, tastes, consumption patterns,” explains Samuel Burner. Be careful with sandwiches too fat, ready-to-wear inappropriate to our weather or our morphology…

A real estate network will have to recalculate its rates because the commission of an agency is about 5% in France, against 2 % the UK.

A Mexican brand will have to review its recipes, with fewer spices. No question, “to make neutral, it would be a mistake,” said Samuel Burner, for whom it takes “a differentiating concept” with a subtle mix of foreign markers and adaptations to the Hexagon. Also note the French standards that are very different from other countries: “It would be a shame to end up with goods blocked in customs,” warns Charlotte Bellet.

What about logistics?

The franchisor will have to make sure to recreate a supply circuit in France: “Perishable goods can suffer long journeys,” says Samuel Burner. And for the textile or costume jewelry, no question of waiting for a restocking by liner.

The customer wants novelty. “Make sure there is a buffer stock in France,”
says David Borgel. ”

And in any case, scrutinize the supply contract, especially the conditions in the event of loss or damage,” says Charlotte Bellet “Finally, see if the cost of transport and customs duties will allow you to keep tariffs competitive without taking too much of your margin.”

Are there any crippling clauses?

It sounds crazy, “but we still see plenty of franchise contracts written in English,” sighs Charlotte Bellet. Only commit to a DIP (Disclosure Document) and a translated contract! And make sure you have training and an operative manual in French.

Check also that the mark is well protected in France. “Franchisors are afraid of France, they do not always know the right, deemed more protective for the franchisee,” says the lawyer.

Beware therefore of the clauses which provide that in case of dispute, the foreign law will be applicable and that the competent court will be located in the franchisor’s country.

“To accept it blandly would be delusional: it amounts to signing without mastering the law that will apply, and without knowing the amount of damages that could claim the network, often hundreds of thousands of dollars in the United States.

” Unless you are well advised, or have the means to offer a French lawyer and another foreigner, you would not only have trouble attacking in case of litigation … but you could not even defend yourself!

In order to give more value to some of FWL customers, after a FWL pilot in the Philippines, we are pleased to announce our new partnership with BQB, who is a Customer (Mystery Shopping) and Employee Experience Expert.

When you want to grow a Global Franchise network, Customer and Employee experience is really key to have the same standards in all the Master Franchise countries.

BQB is on a mission to inspire franchisors to thrive and spiral up their profit by bringing more care into their businesses, making game changing decisions in their culture, enhancing their environments, increasing their employees’ engagement and loyal customers, through a more focused CX & EX Culture.

Listed Number 5 in the Top 30 Global Customer Service Gurus, Claire Boscq-Scott from BQB is an environment, people & customer relationships, Speaker, Adviser & trainer; empowering franchisors to make the game-changing decisions assessing, developing, implementing and measure EX & CX strategies through her Caring Service Culture programs.

Claire, is the author of 2 books, Thrive with the Hive and Thriving by Caring. We are all very excited to be working with Claire and offering her services to our International Franchisors, this is very much in line with our mission to always improve our service delivery and those of our Franchisors.

Franchise World Link, with 17 offices in the World and present in more than 40 countries, with a strong focus in Africa and Asia, since 2014, is specialized in helping investors to find international Master Franchise brands.

IESE Business School Professor and Franchise Worldlink Philippines guest on the Economic Briefing of La Camara

La Cámara Oficial de Comercio de España en Filipinas (Spanish Chamber of Commerce in the Philippines) will have as guest speakers IESE Business School Professor Mike Rosenberg and the Franchise Worldlink Philippines team this coming 6th of September 2019 in Makati City, Metro Manila, Philippines. The session will be in the residence of the Spanish Ambassador to the Philippines.

Professor Rosenberg will present and provide a strategic framework that can help business executives address the challenges of globalization in this evolving geopolitical landscape. He will discuss current geopolitical issues that may cause success or failure in different markets, explore strategies for dealing with global and local complexity, and introduce innovative ideas on recruitment and organization.

Mike Rosenberg is an Associate Professor in the Strategic Management Department of IESE Business School. He began teaching part time in the MBA and Global Executive programs in 1999 and joined the faculty on a full time basis in 2003.

Professor Rosenberg lectures in IESE’s MBA and Executive Education programs where he teaches strategy, geo-politics, and sustainability and publishes a weekly blog on these topics
under the title Doing Business on the Earth. Professor Rosenberg is a member of the Steering Committee of Franchise World Link.

The Sep 6 session will be exclusively for the members of La Camara. La Camara is celebrating its120th anniversary in the Philippines. Since its establishment, the objective of the Chamber is to increase business opportunities among its members and perpetuate the commercial and economic ties that have existed for centuries between Spain and the Philippines.

Franchise Worldlink Philippines is a member of the Spanish Chamber of Commerce in the Philippines, connecting International franchised brands from Spain to Filipino investors. Franchise Worldlink has 17 country offices spanning 50 countries in Europe, Asia, Africa, Middle East and the Americas.

Aside from the event with La Camara, Professor Rosenberg will also facilitate a case presentation for prospective IESE students and will hold a learning session of IESE Alumni on September 7, 2019. Aimee Flordeliza and Cesca de Leon are alumni of IESE Business School.

IESE Business School is the business school of the University of Navarra in Spain, with its main campus in Barcelona. IESE is currently celebrating its 60th year. IESE also has campuses in Madrid, New York City, Munich and Sao Paulo. The school offers both degree and executive education programs for individuals in different career stages coming from all over the globe.

The internationalization of franchising companies is really booming. We are witnessing a new revolution driven mainly by globalization and new technologies. More and more franchisors are studying the different options in order to develop the business through International Master Franchise Licences. Franchise world link’s mission is to help these franchisers precisely. Olivier Guerrero, CEO of the company, agrees to deliver the 3 keys steps before going international.

©Franchise World Link, all rights reserved, May 2019.

Strong willingness to develop your business as an international master franchise.

Don’t start anywhere, no matter how!

In fact, the adaptation of a franchise concept in another part of the world is not really easy. After the indispensable market research or a market analysis alongside with a country visit, and once the countries are targeted, the company must agree on an international development strategy. Some franchisors will simply seize a few opportunities in various foreign countries. And this is fine for the beginning and for the short term; it is what we call internally “Managing Opportunities” many Franchisors at the beginning have been growing internationally that way in the past decades.

But, in truth, an international expansion plan is a necessary strategy for the success of the project! Franchise World Link’s finding is overwhelming: many franchisors are trying to establish themselves everywhere without any prior strategic thinking… Going everywhere and too fast, can create a multitude of problems of internal management at the franchisor headquarters: this type of approach can, in no way be a strategy for the long term.

The International development of your franchise: 2 schools.

The setting up of an international franchise network should be organized step by step. A real strategic pan and reflection on the quality of the partners you identify or that will be presented to you at an early stage is necessary. If you are already a regional franchisor and you are already located in some neighboring countries, then it will be easier to define the next region / continent you want to target.

It is noted that 2 schools of thought in international franchise development coexist:

The first school favours expansion in geographically and culturally closes countries.

The second view is that speaking the same language is the decisive criteria for the choice of countries. French companies entering French Speaking Africa or Spanish companies entering Latin America is a common example.

First of all, it is essential to analyze whether your business concept is free of duty. You need to identify in which country you could quickly be successful and what adaptations would be necessary to attract master franchisees from that country. For the company, the imperative need to rethink its strategy is a major challenge. This strategy must also be shared with shareholders and be non-restrictive. It also requires to be entrusted exclusively to the Director of international expansion or to its CEO. Ideally, at startup a small, culturally open team with international experience is needed. You must also plan a development budget and prepare a coherent “master” financial model.

Having a good Franchise legal adviser

 Having a good legal adviser is very important. In your home country, your legal department must be familiar with foreign countries. In the targeted country, you need a good specialist to check the master franchise contract. Each country is very different and the master franchise contract needs to be examined at the local level, in accordance with local laws and regulations. Then, the pilot test process, as well as pre-contractual information documents may vary from one country to another. In order for the chosen investor to operate, some countries require government authorization to be recognized as master franchisee. In addition, a pilot will be required before the master is allowed to market unit franchises. In some countries the Disclosure Document is required (Mainly USA and Europe) in some other countries it is not necessary (Africa and some Asian Countries), as the franchise laws are not applying and all contracts relies on commercial laws.

Nevertheless having a good Franchise lawyer is important, but is not everything. As a Franchisor you should be able to guide the franchise lawyer in what you want to achieve abroad in line with your strategy.

Too many franchisors that have been successful in their home countries tend to consider the world as a Global market. There are many various options that could be adapted, such as considering Licensing agreements in some countries or other hybrid systems that could adapt to the new country or the new continent.

Financial Modeling, accounting, reporting and controlling.

Reporting and controlling is essential.

The Financial model should be carefully prepared and monitor in line with the Legal targets reflected in the Master Franchise Agreement. (MFA).

The financial model should include all incomes such as Entry Fees, Royalties, and Marketing Fees.

Accounting would be done by the Master Franchisee and reviewed by an extralegal Auditor; this should be clearly specified in the MFA.

In fact the reporting and the control methodology should be clearly mentioned in the MFA, including targets in terms of sales and Key Performance Indicators.

The franchisor headquarters should have a dedicated manager following and monitoring carefully, each country or each area, with regular contacts and regular visits on the field.


Throughout the duration of any Franchise Agreement, the Master Franchisee should allow the Franchisor to electronically control sales and/or, to enter the premises used by the Master Franchisee during the trading hours, to carry out any inspections or audits of the Master Franchise as the Franchisor reasonably requires.

The Master Franchisee could conduct inspections of all the sub-franchisees in the Territory, and of its operations, in accordance with the standards from time to time established by the Franchisor in the MFA. The Master Franchisee shall provide all reports to the Franchisor with respect to the findings of such inspections, in such form and at such times as Franchisor shall require.

Another way to control the Master or the Unit Franchisees in through an integrated CRM and a cash control IT software tool (There are many available in the market), where the franchisor could have access to all the daily data.

Increase the value of the franchisor.

As for the financial aspect, an international expansion has its own costs, but will positively affect the valuation of the franchisor’s comapny. Being part of an international franchise network will greatly stimulate people internally and franchisees globally.

Olivier Guerrero – CEO franchise world link.


The day of “Revolution in the World of Retail” was held on the 19th of September in Barcelona, ​​Spain.

It was much more than an awards ceremony.

Two round tables were held, the first focused on “The importance of the Networking for the StartUps” where Christian Marion of French Tech, served as moderator of important players in the entrepreneurial sector with multidisciplinary profiles. Among the participants in this round table were Ricardo Rustarazo from Retail Trade, Marc Gallardo from RSM, Olivier Guerrero from Franchise World Link, Franch Mourge from Lunilo and Damien Jacquinet from Impacteo Digital.

The second table, “The ROI of recognition” was led by Frederic Castro from Digitalents, accompanied by Laura Torrents from Oikos Consultants, Agustí Molias from Smartcex, Xavier Cross from Aecoc, Miguel Capel from RSM and David Ortega from EADA Bussines School, all of You stressed the importance of making the teams participate in the recognitions that any company receives, thus favoring the team feeling and the value of their own talent.

After the round tables the awards were given.

The winners by categories were:







· OPTICAL: General Optics

· LINGERIE: HunkeMöller



· DIY: Leroy Merlin


· TAPAS & BREWERY: 100 Montaditos

· FAST FOOD: McDonald’s

· HAMBURGERS: TGB | The Good Burger


· BIG STORES: Amazon




· SPORTS SHOPS: Decathlon

Original version (in Spanish).