Setting Up a Grand Strategy for a Foreign Franchisor Coming Into the USA

The United States is probably the most lucrative franchising market in the world, and yet, if you are a foreign franchisor who hopes to come into this market with guns blazing to capture market share and compete beware. It’s not as easy as it looks and you will need to do your homework first, understand the ropes, the law, the market, your industry, and how franchising works here, because it’s not the same as other places, trust me.

What you’ll need is a grand strategy and business plan. The other day, I was explaining this to an executive consultant of a large regional foreign franchising company, and he asked me in so many words, what on Earth do you mean by a “Grand Strategy” and what are your main points here? Okay so, let me give a brief over view:

-Run Stealth for Start-up
-Establish US Presence and Branding
-Dominate the Market, Take No Prisoners, and Win
-Capitalize on ‘out of work’ industry executives as market comes back
-Pure Acceleration, Speed to Market, Strength, Become a Force to be Reckoned with
-Make the Franchise Operation feel “America” but use the allure and mystique of financial strength from your nation for instance
-Consider Pursuing Master Franchising, Co-branding, Co-Marketing, and Industry Specific Modules such as various segments of the overall market

Now then, I’d recommend working with a US Based Franchising Consulting Firm. They will need access to business plans, business model schematics, overall strategy elsewhere so they can coordinate and keep everything as similar as possible, only modifying for regional variation, and exploitation of sub-category niches, and lucrative opportunities for growing your business model in the US.

Okay so let me briefly go over some of the points above here. It’s important to come into the market in stealth mode not alerting the industry or competitors as to what you are doing as you establish yourself, get legal, and begin to market the sale of franchises. Once you pull the trigger, you must come onto the scene as a tough competitor to get respect, but your brand must be “all American” as to not appear foreign, as that will hurt your franchisees as they try to establish new business and get customers.

When coming into the market you will want to expand rapidly making deals and seeking opportunity, you will want to move fast and use the synergy of your vendors, and sub-niche industries to tap into their customer base. This means you will want to align yourself with established businesses, using co-marketing and co-branding strategies. I hope you will please consider all this as you develop your own grand strategy to franchising in the USA. Think on it.