Franchising a business is one of an organization’s many business models in its toolkit. The larger and more important question is expanding a company to another country.
Let me share a high-level process that corporations normally follow before expanding into another country.
Market sizing: There are two approaches to estimating the market size – top and bottom up. Try to get an estimate down to the sub-segment you intend to target.
Regulatory review: It is important to understand the country’s regulatory, social and political environment that you plan to enter. Jurisdictions have different regulations and socio-political environments. These will influence your business and market entry strategy.
Business strategy planning: Look at the industry and competition in the jurisdiction. Today social listening tools can get you a lot of insight into the prevailing business environment in the country. Your strategy planning should be finalized only after thoroughly testing your business concept in the new market.
Business model innovation: At this stage, you look at the available business models. Franchising is just one of the options. In the financial services segment, there are plenty of fintech-based options available. Consider each available option carefully before making the final decision on the business model.