- Move to the target country (relocation).
- Direct franchising.
- Establish branch office in the target country.
- Appoint a master franchisee.
- Appoint an area developer.
- Relocation: The franchisor could go to live in the target country and appoint unit franchisees.
- Direct Franchising: The franchising of units directly from the franchisor’s home country.
- Branch Office: The franchisor could establish a branch office in the target country and appoint unit franchisees.
- Master Franchising: The master franchisee is granted the rights to operate the franchise system in a particular area. It “steps into the shoes” of the franchisor and grants the franchise agreements. In return for these rights the master franchisee pays a franchise fee and ongoing royalties to the franchisor.
- Area Developer: An area developer franchisee purchases the rights to develop and own an exclusive area development territory, and then sells portions of this territory to new sub-franchisees. Area developers may establish their own units. In some cases a master franchisee may appoint an area developer to assist with recruitment of unit franchisees.
- Joint Venture: Franchisor enters into a joint venture with a local company. Together they operate a master franchise or an area developer and create unit franchises. A joint venture is an agreement between the two businesses to provide resources or assistance for a finite period of time. They retain independence in relation to their own existing businesses beyond the scope of the venture.
International Franchise Law: the World is Yours
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