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

 

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