Biweekly Global Business Newsletter Issue 120, Tuesday, October 29 , 2024

The Speed at Which New Technologies Go Mainstream

This 120^th edition is one of our longest covering lots of comparisons across the world with NO politics!!! Take a look at these sections especially the speed with which technologies go mainstream (guess which has been the fastest!), record number of ships and containers entering the ports of Los Angeles and Long Beach, several articles about how A.I. is being used in different types of companies, mall owners and managers are seeing traffic come back despite e-commerce, where countries are on the innovation scale, where consumers around the world prefer local food, Singapore Changi airport goes passportless (?).

Do you know what a ‘Middle Power’ country is? A very timely book review: “The Travels of a T-Shirt in the Global Economy”, Lululemon has 38 stores in Australia (who knew!), guess who leads the world in labor productivity, Germany announces first car plant closing in decades, McDonalds® and Subway® announce huge increases in global stores coming, and the Franchise Association of New Zealand (FANZ) releases their 2024 country survey that shows this country is one of the most franchised in the world.

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Edited and curated by: William (Bill) Edwards, CEO & Global Advisor, Edwards Global Services, Inc. (EGS), Irvine, California, USA. Contact Bill with any questions, comments and we welcome contributions.

The mission of this newsletter is to use trusted global and regional information sources plus our network of 20+ in-country Associates to update our global readers on key global and local trends that can impact the success of their businesses at home and abroad. We subscribe to about 40 international information sources to keep our readers up to date on the world’s business.  Some of the information sources that we provide links to require a paid subscription for our readers to access.  

Editor’s Note: You will see small ads in each edition for carefully vetted companies that serve international businesses. These small, focused, vetted ads are in place of charging subscriptions to our readers. Please click on the ads or use the QR code to see what each of our carefully chosen advertisers can do to make doing global business easier.

Bedwards@edwardsglobal.com https://www.linkedin.com/in/williamedwards/ +1 949 375 1896

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First, A Few Words of Wisdom From Others For These Times

“All humans are entrepreneurs, not because they should start companies but because the will to create is encoded in human DNA.” – Reid Hoffman

“In the business world, the rearview mirror is always clearer than the windshield.” – Warren Buffett

“When everything seems to be going against you, remember that the airplane takes off against the wind, not with it.” – Henry Ford

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Highlights in issue #120:

• The Speed at Which New Technologies Go Mainstream

• Bricks over clicks as shops come back into fashion in Europe –

• Worldwide Consumers Prefer Buying Local Food

• Busiest US Trade Hub Beat Pandemic Cargo Record in Third Quarter

• Franchising New Zealand 2024 Survey Has Been Released

• AI Implementation Roadmap: The Executive’s Guide to Avoiding Million-Dollar Mistakes

• Steady spending in Europe

• A surprise in Singapore: Kenny Rogers Roasters

• Brand Global News Section: 7-11®, Chick-fil-a®, Kenny Rogers Roasters®, McDonalds®, and Subway®

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B2B Payments Platform For Global Businesses

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Interesting Data, Articles and Studies

“The Speed at Which New Technologies Go Mainstream – The invention of the internet, email, and mobile phones also followed a roughly 30-year cycle until mass adoption. Each technology required substantial investment and lead time to establish the necessary communications infrastructure, including cables, towers, and transmitters. However, the time between the invention of the first smartphone and the release of the first iPhone dropped to just 13 years. By 2010, smartphones began to overtake traditional mobile phones in the market. Now we turn to generative AI. Although the concept dates back to the 1960s, recent developments in generative adversarial networks (GANs) and transformers have propelled machine learning to an advanced scale. After the release of ChatGPT and Gemini, the mainstream adoption of AI for everyday tasks is now underway especially as big tech companies integrate it into their products. In fact, Bank of America researchers estimate that “AI-driven efficiencies” will be seen across sectors as early as 2025.’, Visual Capitalist and Bank of America, October 14, 2024

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“The world’s most innovative country – A ranking of 133 countries shows that the global innovation boom is stalling. The index adopts a broad definition of innovation. It includes “outputs”, such as patents, scientific publications and high-tech exports, as well as “inputs”, such as spending on research and development (r&d), the number of engineering graduates, and venture-capital deals. The index takes into account a country’s adoption and use of technology, as well as its production of it. Countries that import a lot of high-tech products and spend liberally on intellectual property from abroad score better on the index. Some of the indicators are unconventional, including the number of feature films a country makes and the amount of changes it makes to collaborative software projects on GitHub, a popular platform for sharing data and code.”, The Economist, October 3, 2024

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“Middle Powers, Polarity and the International System – Second-tier countries are arguably as influential as ever. The great power competition currently underway has created space for second-tier states, or middle powers, to emerge as strong as ever. Alarmed by the growing disruptions to the post-World War II order and what they see as the inability of greater powers to manage the international system, regional actors such as Turkey, Indonesia, Kazakhstan and Australia will begin to play larger geopolitical roles as the U.S. struggles to contain the likes of Russia, China and Iran.’, Geopolitical Futures, October 24, 2024

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“AI Implementation Roadmap: The Executive’s Guide to Avoiding Million-Dollar Mistakes – As a cybersecurity professional specializing in cybersecurity and AI, I’ve seen firsthand the importance of involving key stakeholders when implementing AI solutions. This guide highlights many essential steps to help ensure a smooth, secure, and compliant AI deployment in your organization. By following all these steps, you’ll be more prepared to deploy AI in your organization while addressing some essential security, legal, and operational concerns. Successful AI implementation is an ongoing process requiring continuous attention and adaptation. AI is here to stay; you want to be thoughtful sooner to avoid costly problems later.”, Foster Institute, August 23, 2024

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Simple, secure currency transfers

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“Gen AI in corporate functions: Looking beyond efficiency gains – In less than two years, generative artificial intelligence (gen AI) has become a mainstream tool with applications across almost every area of the economy. New McKinsey research shows that corporate and business functions—including finance, human resources, and customer care, among others—are ramping up their investment in gen AI technologies. A year ago, early adopters were experimenting with pilot projects based on “minimum viable product” gen AI tools. Now a significant minority have deployed gen AI use cases across their organizations. Comparing this year’s survey with its counterpart from 2023, we see a dramatic acceleration in the engagement with gen AI technologies. The proportion of organizations that are actively using (as opposed to just experimenting with) gen AI in their corporate functions has increased by a factor of five…….Furthermore, of the organizations with successful deployments, more than half are using gen AI daily, with less than 5 percent of respondents reporting intermittent usage of once a month or less.”, McKinsey & Co., October 23, 2024

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“The Business Ready (B-READY) project aims to build a comprehensive instrument panel that by 2026 will enable about 180 economies to dial in the precise settings needed for a vibrant private sector development—the combination of conditions that will reduce poverty, advance shared prosperity, and speed up the transition to a low-carbon economy. For too long, though, the focus has been too much on what governments can do for the good of business—and not enough on what businesses can do for the good of all. This report marks a crucial first step to correct that imbalance.  It is designed expressly to discourage “a race to the bottom” or simplistic solutions that were the unintended by-product of Doing Business, our previous effort to help countries establish the right conditions for private sector development. Business Ready’s analytical framework recognizes that there is more to a healthy business environment than the “ease of doing business.”, World Bank, October 2024

Editor’s Note:  For decades those of us who needed to compare countries across several parameters used the World Bank’s Ease of Doing Business index. Then we found out that the data submitted by some countries was ‘overly optimistic’ to say the least. Now that analysis and comparison has been literally thrown out and a more controlled and unbiased set of data has replaced the literally crooked rankings. This analysis is available now for about 50 countries, mostly emerging markets. By 2026 it should be available for 180 countries and should become, once again, a go by standard for market researchers.

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“Global Economics Intelligence executive summary – The OECD sees the global economy improving. Central banks’ strategies are diverging, with some cutting rates and others raising them. China announces a major stimulus, and the US Federal Reserve cuts rates. Positive news is emerging from various sources, suggesting the global economy might be turning a corner, though substantial risks remain. Central banks face a challenging balancing act between managing inflation and promoting growth, which led to divergent actions this month. Several banks cut rates to boost the economy in September, while others tightened policy to tame inflation. Although headline inflation is approaching central banks’ targets, core inflation remains elevated.”, McKinsey & Co., October 21, 2024

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Global Supply Chain, Energy, Commodities, Inflation, Taxes & Trade Issues

“Worldwide Consumers Prefer Buying Local Food – Latest research from YouGov reveals that, on average, three in five consumers worldwide say they prefer purchasing food from their own country (60%) and preference for buying local food is ≥10% higher among consumers concerned about climate change.”, Agtools.com, October 24, 2024. Compliments of Martha Montoya, CEO and Co-Founder of AgTools, Irvine , California

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“Cargo On-Time Rates Are Dismal. Two Shipowners Have a Plan to Fix That. In new alliance, Maersk and Hapag-Lloyd aim to cut docking costs and improve on-time performance. Two of the world’s biggest shipping companies have a new plan to reduce cargo delivery delays. The answer, they say, is to use bigger ships and cut the number of port calls each ship makes. Shippers have been plagued by vessel diversions from the Red Sea and the Suez Canal since late last year after a series of attacks on commercial vessels by Iran-backed Houthi rebels in Yemen. The longer routes around South Africa have added at least two weeks of sailing time and pushed freight rates higher.”, The Wall Street Journal, October 20, 2024

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“Busiest US Trade Hub Beat Pandemic Cargo Record in Third Quarter – LA, Long Beach each broke records set during the pandemic. The busiest container complex in the US surpassed a record set during the pandemic last quarter as businesses continue to bring goods in ahead of potential tariff increases and sought to avoid hurricane and labor disruptions at alternate ports. The LA and Long Beach ports — which together account for roughly a third of all US container imports — each had their busiest ever peak season this year. Cargo volumes flowing into and out of Southern California beat the record set in the second quarter of 2021, when demand for consumer goods and supply chain snarls caused a massive backlog of ships offshore and a pileup of containers on the docks.”, Bloomberg, October 18, 2024

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“Shift to electric vehicles will have far-reaching impact, IMF says – The global transition toward electric vehicles will have “far-reaching” impacts on investment, production, international trade and employment, the International Monetary Fund said on Tuesday as part of its update to global economic growth forecasts. The analysis was included in the IMF’s latest World Economic Outlook, which was released as policymakers meet at the IMF and World Bank annual meetings this week to discuss efforts to boost global growth, deal with debt distress and finance the green energy transition. “The rising adoption of electric vehicles represents a fundamental transformation of the global automotive industry. It will have far-reaching consequences,” the IMF said. “In these scenarios, employment declines in the automotive sector, and labor reallocates gradually to less capital-intensive sectors (with lower value added per worker),” the IMF said.”, Reuters, October 22, 2024

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Global & Regional Travel

“Singapore airport goes fully passport-free with biometric clearance – A passport is no longer needed for clearance at Changi Airport, where biometric clearance has been fully implemented across all four terminals, leading to an average passport-less clearance time of 10 seconds. A release from the Immigration and Checkpoints Authority (ICA) says ‘arriving and departing Singapore residents can clear immigration by simply using facial and iris biometrics, without the need to present their passport. All foreign visitors can also enjoy the convenience of passport-less clearance when they depart Singapore.’”, Biometric Update, October  24, 2024

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“AI Agents and the New Era of Hospitality – AI is no longer just a buzzword in hospitality – it’s a disruptive force transforming how properties are managed and guest experiences are delivered. The adoption of AI is not a question of “if” but “when.” The stakes couldn’t be higher for the hospitality industry, which represents a staggering US$4.1 trillion global market. According to World Metrics, 77% of hoteliers believe that AI helps them better understand guest preferences and deliver more personalized experiences, demonstrating just how critical AI has become to stay competitive. Jurny estimates AI will save $112 billion annually in the Airbnb sector alone, further underscoring its transformative economic impact. In the Airbnb industry alone, the shift will be massive, with a 10x boost in productivity, giving birth to a whole new kind of host.”, Jurny, LinkedIn post, Octoberf 22^nd, 2024

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Book Review

U.S. cotton subsidies and trade restrictions play a huge role in shaping competitive advantages, showing how powerful policies like tariffs impact not only American businesses but also the global market. Rivoli’s analysis of these policies underscores how much governments influence international commerce, from protecting local industries to opening markets. The book dives into labor issues, particularly the conditions in low-wage textile factories. Rivoli sheds light on the ethical dilemmas that come with globalized manufacturing, addressing questions of worker rights, fair wages, and consumer responsibility. Throughout the book, Rivoli demonstrates how regions adapt to shifting economic demands. For example, as industries relocate or production needs change, communities find ways to remain resilient, emphasizing the human side of economic shifts.

This book is a unique way to understand globalization’s impact on everyday goods, showing how something as simple as a T-shirt reflects the vast, interconnected web of today’s economy.

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Keith Gerson and Bill Edwards Join Forces To Offer Trusted Suppliers To The Franchise Community

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Country & Regional Updates

Australia

“Lululemon opens its largest Australian flagship store yet – Lululemon has opened its largest Australian store yet at Emporium Melbourne. The 11,000sqft store is almost triple the size of its previous shop at Emporium and has a significantly larger menswear section. The new store is Lululemon’s ninth Australian project for the year. Earlier, the company opened stores in Chadstone, Geelong and Sorrento. Currently, Lululemon has 38 stores in Australia, with 12 in Victoria.”, Inside Retail Australia, October 22, 2024

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China

“China total profits by enterprise type, annual – A dismal industrial profits and earnings release for September, with profits down 27.1% from a year earlier, following a 17.8% fall in August, while earnings fell 3.5% in the first nine months of the year compared to a 0.5% rise in the January-August period. The decline in profits is the worst seen since the pandemic downturn. SOEs (State Owned Enterprises) were the main drag by enterprise type, with total profits declining 6.5% y/y on a YTD basis. Shareholding enterprises saw a 4.9% y/y YTD decline, while privately-held firms declined 0.6%. Foreign-invested firm profits rose 1.5%, highlighting the underperformance of the mainland economy.”, APAC Daily Chart Book, October 27, 2024

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“China’s GDP growth forecasts edge up as foreign banks respond to stimulus moves – Some international financial institutions have raised their forecasts for China’s economic growth in 2024 in the wake of the raft of stimulus rolled out since late September, tipping Beijing to reach its target of “around 5 per cent”. Forecasts for gross domestic product growth in 2024 – a year addled by tepid retail sales and cool property prices – from the likes of UBS, Moody’s Analytics, Goldman Sachs and Nomura have reached as high as 4.95 per cent. Swiss investment bank UBS on Monday raised its forecast for the world’s second-largest economy from 4.6 per cent to 4.8 per cent “in light of the stronger-than-expected third quarter GDP growth reading and recently announced policy push”, said the research note from its China economist Wang Tao.”, The South China Post, October 21, 2024

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Europe & European Union Countries

Bricks over clicks as shops come back into fashion in Europe – The rise of online shopping has led to swathes of store closures, casting doubt over the future of retail malls and high streets, but in Europe there are signs that shops are back in vogue and are important for helping to drive online sales. European retailers are investing in physical shops to stimulate both online and offline sales as they face increasing competition from giant e-commerce companies, such as fast-fashion group Shein. They also want to capitalise on people’s renewed appetite for visiting shops once COVID-19 lockdowns ended, which has made a Saturday afternoon shopping spree fashionable again. Retailers realise that it is difficult to keep customers without some direct contact with them, said Thomas Joekel, a portfolio manager at Union Investment, which holds shares in LVMVHand Adidas. ‘ This is easier to achieve if you have brick-and-mortar stores rather than just e-commerce,” he said. “On the e-commerce side you can only see pictures but you don’t feel, you don’t smell, you don’t talk to somebody so it’s much more difficult to be optimistic or enthusiastic about a brand,’ he said.”, Reuters, October 28, 2024

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“Steady spending in Europe – Despite a more positive outlook among European consumers, their spending habits remain largely unchanged from the previous quarter, with many continuing to implement savings strategies. Forty-three percent of respondents to a recent McKinsey survey said they had maintained the amount they spent compared with the previous three months, senior partner Jessica Moulton and colleagues note; this proportion is just 3 percentage points higher than at the end of the second quarter. As they had three months ago, a third of consumers indicated they were still carefully tracking expenses and dipping into savings to cover needs.’, McKinsey & Co., October 23, 2024

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Germany

“Volkswagen plans to close at least 3 German plants and cut thousands of jobs – Europe’s largest carmaker tells works council it would slash pay by 10%. The restructuring would mark the first closure of domestic plants in the company’s 87-year history and set up a battle with powerful unions and politicians in Germany, where VW has 300,000 employees.  VW’s management has warned that radical measures are needed as Europe’s largest carmaker faces intense competition in China, slowing sales across other major markets and the need to navigate the costly transition to electric vehicles. Thorsten Gröger, chief negotiator at IG Metall, Europe’s largest union, warned that the cost-cutting would provoke ‘resistance of a kind it could never imagine’. Like German rivals Mercedes-Benz and BMW, VW faces falling profits in China as consumers cut spending and local brands such as BYD take market share.”, The Financial Times, October 28, 2024

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Indonesia

“Apple iPhone 16 Sales Banned in Indonesia Over Investment Issue – Other Apple products aren’t subject to the ban. Indonesia has blocked sales of the latest iPhone 16 handsets over what officials say is the company’s non-fulfillment of local investment requirements. Apple’s local unit, PT Apple Indonesia, “has not fulfilled its investment commitment” as required to be able to sell the new iPhone model in the Southeast Asian country, the Ministry of Industry said in a statement Friday. Under an Indonesian policy aimed at supporting domestic industries and reducing dependence on imported products, companies have to meet set requirements for using goods or services sourced from within the country. This can be done via various means, including investments or hiring local workers.”, The Wall Street Journal, October 28, 2024.

Editor’s Note: This policy fails also for international food and beverage brands who wish to import food products that are not available in Indonesia due to either a lack of local infrastructure or lack of required quality to meet the global standards of a foreign brand.

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Southeast Asia

“South-East Asia’s stodgy conglomerates are holding it back – The region’s ageing corporate empires are stuck in the past—and too cosy with politicians. Few parts of the global economy hold more obvious promise than South-East Asia. But when it comes to home-grown businesses, the picture in South-East Asia is murkier. The market value of investible stocks in Indonesia, Malaysia, the Philippines, Singapore and Thailand is around $900bn. Those five economies have roughly the same gdp as India but less than half its investible market value (see chart 1). Seven American companies are each worth more than the entire South-East Asian market.Multinational firms hoping to move manufacturing away from China are racing to establish supply chains in the region. Indonesia, the Philippines and Vietnam are expected to be among the fastest-growing economies in the world during the rest of the decade. Malaysia is likely to join the ranks of the world’s high-income economies soon. Singapore’s importance as a financial hub has grown as foreigners have deserted Hong Kong. Among the top 50 firms in South-East Asia by revenue, only one—Sea, a Singaporean gaming and e-commerce firm—was founded in this century. State-owned enterprises account for 15 of the top 50. Subsidiaries of the region’s tentacular conglomerates account for 14.”, The Economist, October 24, 2024

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United States

“American productivity still leads the world – Innovation and a vibrant tech sector continue to give America a competitive edge. This year the average American worker will generate about $171,000 in economic output, compared with (on purchasing-parity terms) $120,000 in the euro area, $118,000 in Britain and $96,000 in Japan. That represents a 70% increase in labour productivity in America since 1990, well ahead of the increases elsewhere: 29% in Europe, 46% in Britain and 25% in Japan. American workers, simply put, have more tools at their disposal, both the physical kind such as highways and warehouses and the intangible sort in the form of software. With the exceptions of Israel and South Korea, America invests more in r&d than any other country, at roughly 3.5% of gdp. China is the one major power that has closed the gap on r&d spending, but it still trails America by a large absolute margin. The dynamism applies to America’s labour market, too. In any given three-month period about 5% of its workers change jobs. In Italy it takes one year to get the same level of labour turnover. A study in 2020 by the oecd found that among citizens in a large sample of Western countries, Americans were the most likely to move elsewhere for new jobs.”, The Economist, October 14, 2024

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“What Small Business Owners Think – We surveyed 1,200 of them. Here’s what they said. Entrepreneurwanted to know, so we partnered with Faire, an online wholesale marketplace where gift shops, pet stores, clothing boutiques, and other mom-and-pop shops source their products. Faire put five questions out to its retailers, and more than 1,200 responded—revealing their biggest concerns, wins, and what it really takes to keep a small business alive. “These owners are out there fighting every day, making things work, and having an incredible impact on their communities,” says Faire cofounder and CEO Max Rhodes. ‘They’re super resilient.’”, Entrepreneur, October 2024

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Taking Brands Global Successfully For 5 Decades

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Brand & Franchising News

“Watami acquires Subway’s Japan operations in fast-food pivot – Company looks to move past izakaya pubs to find long-term growth. ‘We will make it a popular brand among young people,” he added, noting that the goal is to change from izakaya operator Watami to Subway operator Watami, said Watami Chairman and President Miki Watanabe at a press conference in Tokyo on Friday. Watami signed a master franchise agreement with Subway for a period of 10 years, giving it exclusive rights to operate the chain in Japan. It also acquired Subway Japan, which had been operating stores there. The operating rights for about 180 existing stores will be transferred to Watami, which will manage them and recruit new franchisees.”, Nikkei Asia, October 26, 2024. Compliments of Ichiro (Roy) Fujita, I, Fujita International, Los Angeles and Tokyo

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“Franchising New Zealand 2024 Survey Has Been Released – This just published survey of the franchise community in New Zealand had these findings:  There are 546 business format franchisors in New Zealand in 2024. There is an estimated total of 29,750 units operating in business format franchises. More than 114,300 people are employed directly in business format franchises. Sales turnover for business format franchises was estimated at NZ$47.2 billion. Sales turnover for the entire franchising sector was estimated at NZ$73.4 billion. 72% of franchises are using or planning to implement AI technologies within their operations. 73% of franchise networks are New Zealand founded. Nearly 20% of NZ franchise networks have entered international markets. 90 percent of franchise brands return profits back into the community. Only 18.8 percent of franchisors were involved in a substantial dispute (with one or more franchisees) in the past twelve months.”, Massey University completed this survey sponsored by the Franchise Association of New Zealand, Westpac, Nexia New Zealand, Franchize Consultants, Stewart Germann Law Office, Laser Plumbing and Electrical, and Exceed, Iridium Partners, and Franchise New Zealand media.

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“McDonald’s largest global franchisee is working on a 20-year renewal agreement – Arcos Dorados expects to add 90 to 100 units in 2025. Arcos Dorados Holdings Inc., Latin America’s largest restaurant company and the world’s largest independent McDonald’s franchisee, said it will renew its master franchise agreement with the quick-service giant. Arcos Dorados received a renewal notice from McDonald’s Aug. 1 to replace the parties’ existing MFA with a new, 20-year MFA to be effective Jan. 1, 2025. For its part, Arcos Dorados operates nearly 2,400 restaurants throughout Latin America and the Caribbean. The franchisee became a publicly-traded company on the New York Stock Exchange in April 2011. Its current market capitalization is $1.8 billion, while its share price has grown steadily by about 60% in the past 10 years. On the news of a renewal agreement Tuesday morning, Arcos Dorados’ share price jumped 16%.”, Nation’s Restaurant News, October 1, 2024

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“Chick-fil-A to open first Singapore restaurant, enter Asia in 2025 – The chicken chain will invest $75 million over 10 years to support its expansion within Singapore, which will provide a gateway into the rest of the continent. Chick-fil-A will enter Asia in late 2025 with the opening of its first Singapore store, the company said Thursday in an announcement.  Chick-fil-A also plans to open its first five stores in the United Kingdom over a two-year period as part of a $100 million investment. Chick-fil-A (Asia) Pte Ltd hosted a pop-up event in Singapore in June to introduce the brand and gain a better understanding of guest preferences. Over 1,000 people attended the three-day event, signaling early interest by Singaporeans. The company said that Singapore will serve as a gateway to the rest of the continent.”, Restaurant Dive, October 17, 2024

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“Subway China returns to the table – Strengthening the independent selectivity of Subway’s menu and launching various seasonal and localized products are new initiatives launched by Subway China after the change of new leadership. In June 2023, Subway’s global headquarters announced that it had signed a new master franchise agreement with Shanghai Furui Food Enterprise Development Co., Ltd. (hereinafter referred to as “Furui Food”). Furui Food has obtained the exclusive rights to manage and develop all Subway stores in mainland China. Furui Food will open nearly 4,000 stores in mainland China in the next 20 years, expanding Subway’s market size in China by more than seven times. Over the past year, Subway China has made a comprehensive update from the location, layout, and style of new stores to the addition of breakfast and freshly ground coffee to the menu, the development of local flavors, and the visual presentation of the brand IP. As of June 2023, Subway had only opened more than 500 stores in China after more than 20 years of operation. As of October 2024, this number has risen to 750, indicating that in the past year or so, Subway China has achieved a significant expansion equivalent to half of the growth in the past 20 years. Last November, Subway opened its first Subway flagship store in Shanghai. This is the first flagship store opened by Subway in China in more than 20 years.”, eeo.com.cn, October 25, 2024 (in Mandarin). Article and translation compliments of Paul Jones, Jones & Co., Toronto

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“A surprise in Singapore: Kenny Rogers Roasters – Dispatch from Singapore: Defunct in the U.S., the rotisserie chicken chain remains alive and well in Asia, proving again just how difficult it is to kill a restaurant brand. One of the first lessons we learned since we started covering restaurants nearly two decades ago was just how hard it is to kill restaurant brands. Once a brand establishes itself, it has some value, even if the business model is flawed or the parent company struggles. It takes a lot to kill a restaurant chain. Kenny Rogers Roasters was created in the early 1990s, the latest in a weird string of country music personalities creating typically chicken- focused restaurant chains (anybody remember Minnie Pearl’s Chicken?).  But the brand also faced controversies and challenges from the get-go. It was sued by a Miami-based brand, Cluckers Wood Roasted Chicken. And then Boston Market grew rapidly. The chain filed for bankruptcy by 1998. Rogers himself sought to cut ties with the brand that year. The chain was then sold to Nathan’s Famous in 1998 in a deal estimated to be worth $4 million. Nathan’s had a habit at the time of buying dying brands and later bought the rights to Arthur Treacher’s Fish & Chips.  Kenny Rogers Roasters didn’t quite thrive under Nathan’s ownership and a decade later the brand was sold to a Malaysian company that owned the international master franchise rights, Berjaya Corp (which) operates a few western brands, among other things, including Starbucks, Krispy Kreme and Paris Baguette.”, Restaurant Business Online, October 21, 2024

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“Revolutionizing Franchising: How Croatia’s Micro Franchises Are Making Business Ownership Accessible – Franchise entrepreneurs in Croatia are creating micro franchise opportunities to broaden the feasibility of franchise ownership in Europe and beyond. “In many Eastern European countries, the franchise sector has lagged behind the West, and the best way to develop the sector is through low-investment or micro franchises,” explains Dr. Ljiljana Kukec, who leads the Croatian Franchise Association. Instead of investing $150,000 to $350,000 (the “sweet spot” for American franchise brands) micro-franchisees in Croatia are spending well under $50,000 to own a franchise. Just three years ago there were 19 indigenous franchise brands in Croatia; now there are 72! Countrywide there are some 250 franchise brands.”, Dr. John Hayes, Titus Center for Franchising, Palm Beach Atlantic University, LinkedIn, October 26, 2024

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“7-Eleven to open 500 food-focused stores by 2027 – The convenience-store giant’s new locations will feature more prepared food, including in-store restaurants like Laredo Taco Co. Convenience-store giant 7-Eleven plans to open 500 food-and-beverage-focused locations in the U.S. from 2025 to 2027, according to an investor presentation from parent company 7 & i Holdings on Thursday. The stores will feature a new format called New Standard that continues the chain’s shift toward larger, more high-tech stores with expanded food options, including in-store restaurants. It builds upon a previous prototype that incorporated Laredo Taco Co., the 600-unit quick-service Mexican brand 7-Eleven acquired when it bought most of the Stripes c-store chain in 2018. (It added the remaining locations in April.)”, Restaurant Business, October 25, 2024

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Our Mission, Information Sources & Who We Are

Our biweekly global business update newsletter focuses on what is happening around the worldthat impacts new trends, health, consumer spending, business investment, the franchise sector, economic development, and travel. We daily monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing business environment. And our GlobalTeam™ on the ground covering 25+ countries provide us with updates about what is actually happening in their specific countries.   We do not get involved in or report on politics!

William “Bill” Edwards: Global Advisor Is Uniquely Qualified to Steer Sr. Executives Successfully Through the Complex Waters of Going Global.  With four decades of successful international business experience spanning virtually every corner of the world and many business sectors, Bill Edwards understands the global business landscape like no other.  He has been a County Master Franchisee in five countries in Asia, Europe, and the Middle East; the Senior VP for a franchisor operating in 15 countries and a full-service consultant since 2001 taking 40+ franchisors global.

To receive this biweekly newsletter in your email every other Tuesday, click here –  https://insider.edwardsglobal.com +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

For a complimentary 30-minute consultation on how to take your business into new countries and make money doing it. For a complimentary call with Bill Edwards click on the QR code or contact Bill at bedwards@edwardsglobal.com and +1 949 375 1896

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Biweekly Global Business Newsletter Issue 119, Tuesday, October 15, 2024

Global Economy Moves Beyond Inflation Crisis to Stable

And then there are the 67 national elections being held in 2024. Almost all, but now quite all (!!!!!!!!), are finished. “Elections have consequences” for companies trying to plan how best to manage their businesses. European EV owners are eyeing going back to gas. China is trying a number of things to stimulate its slow economy. The United Kingdom’s economy is waiting for the first new government budget. And Shake Shack® is reinventing the restaurant labor model.

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Editor’s Note: You will see small ads in each edition for carefully vetted companies that serve international businesses. These small, focused, vetted ads are in place of charging subscriptions to our readers. Please click on the ads or use the QR code to see what each of our carefully chosen advertisers can do to make doing global business easier.

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Edited and curated by: William (Bill) Edwards, CEO & Global Advisor, Edwards Global Services, Inc. (EGS), Irvine, California, USA. Contact Bill with any questions, comments and we welcome contributions.

Bedwards@edwardsglobal.com

https://www.linkedin.com/in/williamedwards/

+1 949 375 1896

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The mission of this newsletter is to use trusted global and regional information sources plus our network of 20+ in-country Associates to update our global readers on key global and local trends that can impact the success of their businesses at home and abroad. We subscribe to about 40 international information sources to keep our readers up to date on the world’s business.  Some of the information sources that we provide links to require a paid subscription for our readers to access.  

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First, A Few Words of Wisdom From Others For These Times

“Tactics without strategy is the noise before the defeat.”, Sun Tzu

“Wonder what your customer really wants? Ask. Don’t tell.”, Lisa Stone

“Get big quietly so you don’t tip off potential competitors.”, Chris Dixon

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Highlights in issue #119:

• Global Economy Moves Beyond Inflation Crisis to Stable Growth

• McKinsey & Co. Economic conditions outlook, September 2024

• How will climate change affect crop yields in the future?

• Who makes China’s stimulus decisions, and what’s the procedure?

• Shake Shack reinvents the labor deployment model

• Brand Global News Section: Foot Locker®, Shake Shack®, and TGI Fridays (UK)

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B2B Payments Platform For Global Businesses

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Interesting Data, Articles and Studies

“Global Economy Moves Beyond Inflation Crisis to Stable Growth – OECD says central banks can continue to prudently cut rates. Significant risks remain to the outlook, organization says. The global economy is settling into a newfound stability as the stress of strong inflation eases, allowing central banks to keep cautiously loosening policy, according to the OECD. Economic growth has remained resilient in recent months, inflation has continued to moderate and indicators suggest ongoing momentum in services, the Paris-based organization said on Wednesday.”, Bloomberg, September 25, 2024

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“McKinsey & Co. Economic conditions outlook, September 2024 – For the first time since March 2020, surveyed executives primarily see the global economy as stable rather than improving. The latest McKinsey Global Survey on economic conditions reveals more cautious sentiments from respondents on both current global conditions and domestic economies than seen in the previous two quarters—though a plurality of respondents expect each to improve in the next six months. While geopolitical instability continues to loom as the top perceived risk to global and domestic growth, in a year when almost half of the world’s population will vote in national elections, respondents now cite political transitions second-most often as a threat both globally and at home.”, McKinsey & Co., September 27, 2024

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Editor’s Note: We first brought up the fact that there will be national elections this year in 67 countries covering 49% of the world’s population and 52% of the world’s GDP in early 2024. “Elections Have Consequences”. This is particularly important for businesses trying to plan for growth. New governments – no matter what party or ideology – usually make changes in taxes and regulations that will impact both local businesses and foreign businesses considering entering new countries. In 2025, we will see the impact of 67 national elections in 2024 on our ability to grow the world’s GDP in 2025.

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Simple, secure currency transfers

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Global Supply Chain, Energy, Commodities, Inflation, Taxes & Trade Issues

“How will climate change affect crop yields in the future? Maize yields could see significant declines, but wheat could increase. Impacts across the world will be very different. How much will climate change affect food production? Will it hurt or benefit crop yields? Can we feed 8, 9, or 10 billion people in a warmer world? The impact of climate change on yields will depend on several factors: the type of crop, how much warmer the world gets (which will depend on how quickly we reduce our carbon emissions), where in the world you are, and what we do to adapt.”, Our World In Data, October 13, 2024

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“Copper: Now and in the Future – Geopolitical challenges in copper mining are significant, particularly in Latin America and Africa. Copper is crucial to the global economy, and its importance is only going up. Historically, copper has been vital in construction, electrical networks and transportation. But now it is also in high demand as the world shifts toward green technologies and the electrification of transportation. Due to its high conductivity, durability and resistance to corrosion, copper is used in electric vehicles, solar panels and wind turbines. Major copper mining regions include Latin America, particularly Chile, which produces a quarter of the global supply.”, Geopolitical Futures, October 11, 2024

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“EV owners eyeing gas – Across Europe, 19 percent of electric vehicle owners are likely or very likely to switch back to a traditional combustion engine vehicle, according to a McKinsey Mobility Consumer Pulse Survey. Senior partner Andreas Venus and colleagues explain that the share of electric-vehicle owners who say they would consider switching back varies by country: 24 percent of owners in Germany would consider switching back, compared with 18 percent of owners in France and Norway and 15 percent in Italy. The global average is 29 percent.”, McKinsey, October 8, 2024

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Subscribers to our newsletter are invited to a webinar on best practices in global franchising with a focus on taking an international franchise into Spain successfully on Wednesday, October 30^th at 9AM west coast USA time.

William Edwards (https://www.linkedin.com/in/williamedwards/) and Ned Lyerly (https://www.linkedin.com/in/nedlyerly/) will draw on their 8 decades of taking franchises into new countries successfully to share best practices – what works and what fails!

To sign up for this free webinar please go to this LinkedIn link to register:

https://www.linkedin.com/events/7246525895643987968/comments

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Book Review

Professionals cannot ask their most successful competitors and peers their secrets of rainmaking. That would be awkward, impractical, and sometimes illegal. But it pays to compare yourself to your successful peers.

So, the authors of Rainmaker Confidential  did it for you in this 2022 book. Henry DeVries, Scott Love and Mark LeBlanc went behind closed doors and asked the tough questions. We asked more than one hundred successful rainmakers what they are investing more in, what they are cutting back on, and what are their go-to strategies. In other words, how are they investing their time, treasure, and talent. Think of us as your rainmaking R&D department. You’ve no doubt heard of using OPM (other people’s money) to grow your business. This book is about using OPE (other professionals’ experience) to grow your business.

This book is for those who serve in roles such as chief executive officer, general manager, principal, partner, or head of an office, business unit, or practice for professional service firms, especially in the fields of accounting, dental consulting, financial services, management consulting, marketing and advertising, executive search services, software development, technology services, and law firm management. Some define R&D as research and development; the authors define it as rob and duplicate. (!!!??)

The authors say they have done the research so you can ‘rob and duplicate’ the most successful rainmaking strategies from your professional peers. It’s okay, we did not use espionage to gain their secrets. The OPE rainmaking insider secrets were willingly shared.

Editor’s Note: Your editior has known and valued Henry DeVries and his common sense wisdom about rainmaking and publishing your own book for many years. 

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Keith Gerson and Bill Edwards Join Forces To Offer Trusted Suppliers To The Franchise Community

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Country & Regional Updates

China

“Can joint ventures fix China’s trade imbalance with the EU and US? Chinese investment abroad is ‘only way’ to ease Beijing’s trade surplus, says leading researcher in wake of Brussels’ EV tariff vote. Trade tensions are growing, with China announcing on Tuesday that it will start collecting anti-dumping duties on European brandy. The announcement came just days after Brussels voted to impose tariffs on Chinese-made EVs after concluding that Beijing was unfairly subsidising EV exports to Europe.”, South China Morning Post, October 12, 2024

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“Who makes China’s stimulus decisions, and what’s the procedure? What has changed since China rolled out a 4-trillion-yuan (US$141 billion) stimulus package in 2008, and why a concrete stimulus figure now remains elusive. Compared with the 2008 stimulus package announced by China’s then premier, Wen Jiabao, China’s current economic power now largely rests with the Central Financial and Economic Affairs Commission headed by President Xi Jinping. The National Development and Reform Commission, which is a long-term planner and a coordinator on economic issues, will focus on expanding and front-loading government investment to boost the economy, as it is responsible for approving large infrastructure projects. And the source of funding will come from the Ministry of Finance (MOF), whose plans include debt relief for local governments, capital replenishment for major state-owned banks and fiscal support for the property market.”, The South China Morning Post, October 14, 2024

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Germany

“Germany’s choice – Should Europe’s largest economy embrace the future or double down on past successes? Europe is at a hinge moment, but so is Germany. And it is hard for the EU to go anywhere without its largest economy consenting to go in the same direction. Hard though not impossible, as shown by last week’s imposition of tariffs on Chinese electric vehicle imports, in the face of Berlin’s opposition. Still, so long as Germany does not know what it wants, the EU will struggle to make any big steps forward.”, The Financial Times, October 10, 2024

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Portugal

“Portugal proposes decade of tax breaks for young people to stem brain drain – In April, Portugal swore in a new center-right government. It inherited a huge problem, namely: how do you stop a brain drain that’s seen thousands of young people leave your country, at a time when your population is naturally aging and birth rates are hitting record lows? The new prime minister, Luís Montenegro, has a radical proposal — a decade of super low taxes for people under 35. Under the proposed scheme, young workers who earn less than €28,000 ($30,650) would enjoy a completely tax-free first year. They would then be exempted from 75% of tax until the fourth year, enjoy a 50% exemption in years five to seven, and a final 25% in years eight to ten.”, Chartr, October 12, 2024

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United Kingdom

“UK economy grew 0.2% in August – Figure comes as chancellor Rachel Reeves prepares Labour government’s first Budget this month. Friday’s figure, in line with economists’ forecasts, came after zero growth in June and July but marked a slowdown from the start of the year.  Services output grew 0.1 per cent in August, production was up 0.5 per cent and construction expanded 0.4 per cent, the Office for National Statistics said. The ONS data comes less than three weeks before Labour’s first Budget, when chancellor Rachel Reeves faces the challenge of lifting economic growth while repairing the public finances”, The Financial Times, October 11, 2024

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“UK employers and staff pay more tax on earnings than Germany – Taxes on income, profits and capital gains paid by individuals and corporations in the UK rose to the equivalent of 13.3pc of the economy in 2022, amid fears that Rachel Reeves will push the burden even higher in her maiden Budget on Oct 30. This is the highest share since records began in 1990, according to data compiled by the Organisation for Economic Co-operation and Development (OECD), pushing the UK’s burden on earnings further ahead of Germany, Europe’s largest economy. The UK’s tax share on earnings surpassed German levels in 2021 amid a stealth raid on wages presided over by Rishi Sunak.”,  The Telegraph, October 7, 2024

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United States

“US Consumer Sentiment Unexpectedly Falls on High Cost of Living – University of Michigan sentiment index at 68.9 after 70.1. Short-term inflation views rose to 2.9% in early October. Consumers expect prices will climb 2.9% over the next year, up from the 2.7% expected in September and the first increase in five months, the report issued Friday showed. At the same time, they see costs rising 3% over the next five to 10 years, down from 3.1% in the prior month.”, Bloomberg, October 11, 2024

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Taking Brands Global Successfully For 5 Decades

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Brand & Franchising News

“Foot Locker’s reimagined concept store set to debut in Australia – The store will feature the ‘Home Court’ experience, a multi-brand destination developed in partnership with Nike and Jordan. The store will feature Foot Locker’s ‘Home Court’ experience, a multi-brand destination developed in partnership with Nike and Jordan. Its product offer will include on-court and off-court items from Nike, Jordan, Adidas, Puma, New Balance, and Under Armour. The reimagined store concept launch comes after Foot Locker celebrated its 50th anniversary last month. The brand has also launched the reimagined store concept in New York, Paris, and New Jersey, and will launch soon in Delhi.”, Inside Retail Australia, October 14, 2024

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“Shake Shack reinvents the labor deployment model – The burger chain joins a growing number of fast-casual chains using AI-driven technology to better manage staffing. Shake Shack is moving to a bespoke labor deployment model that CEO Rob Lynch said could be a game changer. In fact, the fast-casual burger chain joins a number of peers making similar moves toward using AI-driven technology to more accurately predict the team members needed in each restaurant and when to deploy them.  The CEOs of Chipotle, Sweetgreen and Cava in recent months have all described using similar types of technology as they look to improve profitability at a time when macroeconomic pressures are keeping a lid on menu price increases.”, Restaurant Business, September 5, 2024

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“Family favourite restaurant to close 35 locations immediately – More than 1,000 staff will lose their jobs at TGI Fridays (UK) after a deal to save the well-known brand failed to include all 86 locations. A deal has been struck that saves 51 restaurants and nearly 2,400 jobs. The new deal was agreed today with private equity firms Breal Capital and Calveton UK, and will operate under the Liberty Bar and Restaurant Group Limited name.”, The Sun UK, October 7, 2024

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Our Mission, Information Sources & Who We Are

Our biweekly global business update newsletter focuses on what is happening around the worldthat impacts new trends, health, consumer spending, business investment, the franchise sector, economic development, and travel. We daily monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing business environment. And our GlobalTeam™ on the ground covering 25+ countries provide us with updates about what is actually happening in their specific countries.   We do not get involved in or report on politics!

William “Bill” Edwards: Global Advisor Is Uniquely Qualified to Steer Sr. Executives Successfully Through the Complex Waters of Going Global.  With four decades of successful international business experience spanning virtually every corner of the world and many business sectors, Bill Edwards understands the global business landscape like no other.  He has been a County Master Franchisee in five countries in Asia, Europe, and the Middle East; the Senior VP for a franchisor operating in 15 countries and a full-service consultant since 2001 taking 40+ franchisors global.

To receive this biweekly newsletter in your email every other Tuesday, click here –  https://insider.edwardsglobal.com +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

For a complimentary 30-minute consultation on how to take your business into new countries and make money doing it. For a complimentary call with Bill Edwards click on the QR code or contact Bill at bedwards@edwardsglobal.com and +1 949 375 1896

www.edwardsglobal.com