The Fastest 2 Minutes in International Franchising

For 2015 EGS’ US franchisor clients are seeking licensees in over 20 countries. Our GlobalTeam™ of highly experienced international development project managers contributed to the following brief summary of the franchising environment around the world for the New Year:

 

Asia China
Japan
Malaysia
Mongolia
The Philippines
Thailand
Viet Nam
F&B franchises iffy, as is the investment climate
Carl’s Jr. signed a 150 restaurant license
New mall developers are seeking US franchises
Pizza and coffee franchises – now 2 each!
A focus on more US F&B brands
Overall stable politics, but economy is iffy
F&B franchises desired
Americas Argentina
Brazil
Canada
Chile
Colombia
Mexico
Peru
USA
You still get paid in soybeans
Economy is stalled, new investment stopped for now
Tim Horton’s and Burger King are now one (???)
New President seems negative on business
Still ‘show me the money and where it came from’
Mexico City, Monterrey and Cancun booming
A focus on more US F&B brands
Franchise model with individual owners remains in peril
Europe Czech Republic
Ireland
Germany
Poland
Russia
Spain
Turkey
United Kingdom
Prague has a high GDP/capita, other large cities lower
GDP growth of 3% in 2015 is high for the EU
Difficult to find investors for new foreign brands
3.3% GDP growth for 2015 is the highest in the EU
Foreign F&B brands have US$ denominated rents
GDP growth for 2015 of 1.7% is high for large EU countries
US F&B investment and high-end malls growing
Build a pilot first, then investors come
Middle East Egypt Saudi Arabia
UAE
Interest in new franchise unit investment for 2015
Challenges to get new businesses open due to regulations
New trend of neighborhood malls in Dubai
Elsewhere Australia
India
New Zealand
Nigeria
Pakistan
South Africa
90%+ local franchises, difficult to get foreign brand investors
New government equals a very positive business attitude
Few consumers, but pro foreign franchise brands
Foreign franchises have numerous operating challenges
Not now for foreign brands
90%+ local franchises, but hope for foreign brands