Learn About International Franchise Opportunities
Alex Fees: Franchising is not only a popular option here in the United States for many nations around the world as well. In 2007 China and India are two of the top growth areas for franchises around the globe. Somebody’s foreign branches are entering the US market. Our guess today has inside on this franchising trend. Franchise Expert Dick Rennick is an award winning founder of a 360 unit franchise system and former chairman of the international franchise association. Rennick is recognized as one of the leading experts in franchising. Dick welcome to SBTV.com, we appreciate you being here. Is this the new trend Dick? This foreign in fluids foreign franchise brands entering the US markets.
Dick Rennick: Yes it is actually we have been exporting many of our brands our franchise brands internationally but only in the past few years have we seen an influx of people from other soils around the globe bringing their brands in this country and there’s lots to go through to get them ready for franchising in the United States.
Alex Fees: And the product may or may not stand on it but when they get here they took maybe a completely different ball game.
Dick Rennick: Absolutely. But the rules and regulations in this country are pretty heavy.
Alex Fees: And what we’re talking about as far as regulations.
Dick Rennick: Well, you have to have a specific franchise document that’s approve by the Federal Trade Commission then there are documents that are relative and are extra information and just be put in your franchise documents for about 15, 16 states so there’s a lot more regulations but what most are going to be used to it.
Alex Fees: Is that the main issue for this people? Government regulations getting through with the red tape if you will.
Dick Rennick: I wouldn’t say it’s the manage you but it’s certainly one of several key issue. The key issue for coming to this land is that they can absolutely probably franchise there system providing that it’s relevant to what would be happening in this country but it’s a good thing to get somebody with the company like mine to help them locate in an area that would be good for them to prosper with your franchise system. As an example if somebody was coming from the European theater and was selling upgrade clothing through the stores up for children, would you want to put them in a mid Western section of this country or would you want to put them in areas where a lot of textile manufacturing might be happen like maybe on the West Coast to East Coast.
Alex Fees: So what do you tell us somebody like that because in that example you gave I’m guessing while they’re maybe more resources on the West Coast. There’s also more competitions for them out there, right.
Dick Rennick: Absolutely. But if they got a good brand and they’ve got backing behind them I don’t’ think they should look at the competitions scare them because most of them coming to this country are certainly have different brands and ideas of product template that we have with our own brands.
Alex Fees: What about that when it comes to different ideas and such are there cultural considerations for some of these folks.
Dick Rennick: Very key has got to be culture consideration. We’ve got to be make sure that they bring their brand whatever this especially if it was foods. Make sure that it fits into our cultured taste, if its product and make sure that it fits into war cultures desire for that particular product. So there are some things that they need to do through companies like me or go to the international franchise associations website or franchise.org and find out some information that can help them determine if this might be something that they want to do by expanding there brand not only in other foreign countries from their own but do they want to come to the United States. Franchise.org. can give them a lot of information that would help them to determine if they want to come.
Alex Fees: And specifically what would you go about stream line in the process for these entrepreneurs.
Dick Rennick: Well, companies like mine do most of the research for them we find that with their product is, we review everything that they have in their own countries and we make sure that there’s a need for that service in this country and give a more recommendation, they certainly don’t have the follower recommendations but its very important that we give them as much information as we possibly can so that they can make the right decision on whether they want to franchise here or not.
Alex Fees: Dick let’s talk track record here for a second. Can you give us some examples of foreign franchise brands that you’re aware of that have had success here in America?
Dick Rennick: In the recent past there’s one that is doing very well called Aussie Pet Mobile and they’re a mobile pet grooming franchise out of Australia. There are a couple of brands and opinion from Canada recently that are doing very well. There are some food brands that are in town USA from foreign lands and are doing well but they certainly have had their struggles meaning that they had to go through all the red tape and learn all the economic issues that this country can pair of their own and so it can occur that they just got to have good advice from experts that can help them to make that determination.
Alex Fees: And an organizations like your is a — when it comes to state department things of that nature you have to be very well versed and what kind of regulations these people are likely to encounter.
Dick Rennick: Absolutely. First of all when they come into the United States there is a Federal trade rule where they have to put together a thing called the uniform franchise offer that insured for that. And this uniform franchise offering circular has 22 items that they have to comply with and so they ask him specific questions and they comply with this items and then the next, that’s the offering part of the circular. The second part of the circular is the license agreement. The many page documented you would sign with your franchise E to say we’re going to award you this franchise and third is the exhibit section of this uniform franchise offering explaining the company all of its trade marks, all of its patterns, all of its financials from where they come from and the finances on this country. It’s a twirl notebook on this company’s history.
Alex Fees: Getting down the fine details here. Dick Rennick thank you for joining us look forward to other segments on franchising and small business from Dick here on SBTV.com. You can learn more about Dick and his company by going online to TeamRennick.com. This is SBTV.com small business is our only business.
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