How can I persuade a franchiser to..

**cbm** · 05-10-2011 05:14 AM

How can I persuade a franchiser from the US to let me open up a franchise in Germany?

I have recently asked a franchiser whether they will let me open up a franchise in Germany, however they told me that they aren't considering international expansion. I know that this specific restaurant will do wonderful here and would be an absolute huge hit here. Is there laws restraining the US franchiser from letting him do international business, high taxes for them? And yes back to the question from above..
If there isn't how can I persuade the franchiser to let me open up a franchise in Germany?

Cheers!

**Patrick Maslyn** · 06-30-2011 10:57 AM

Money talks. US businesses typically will only franchise internationally if it involves a commitment to develop a decent number of units. And, of course, they will expect a large fee up-front, in addition to the royalties that would be paid during the agreement. There are laws that they need to be aware of, but these aren't necessarily the biggest issue. They will need to develop support and infrastructure to maintain some oversight over the brand. That just isn't worth doing unless there is a sizable commitment.

**chuff1026** · 07-04-2011 06:37 PM

CBM,
When considering convincing them(or attempting to convince them), think about what they will have to do to supply the resources(whether it is dry food, merchandise, training) to establish a franchise overseas and if it will benefit them enough to do or example, if there were no McDonalds in Germany, but they have to supply one location with the same burger patties and bread from the US, it may not be worth the trouble and risk.

Marc