Franchise Update Magazine Issue III, 2013 | Page 63

Inbound examples abound Jeff Elgin, CEO of FranChoice, sees a broad swath of franchises entering the U.S. “A new entrant is Metal Supermarkets. They sell odd lots of metal to companies, and there is a huge market with lots of demand for this and great margins for the franchisee. This franchise’s tag line is ‘the world’s largest supplier of small quantity metals,’ and it comes from Canada. They consider themselves the ‘convenience store for metals.’” Filling a niche is a very good reason for an international franchise brand to enter the USA market. Le Pain Quotidien is an example of a foreign franchisor that took an intelligent, measured path to success in the U.S., says Jeff Kolton, principal of Franchise Market Ventures, who brought this high-end food brand to the U.S. some years ago. Based in Belgium, with international licensees in 17 countries, the company established an office in New York City and hired a management team with experience at building similar chains in the U.S. Instead of launching a franchise program in the U.S., they grew organically through company-owned units, slowly creating the infrastructure to support future growth. “They continue to have all their tables and chairs made by the same company in Europe to maintain brand integrity, work off the same menus for their breads, and lean toward menu consistency around the world,” says Kolton. Ichiro (Roy) Fujita, president of I. Fujita International, helps Japanese brands enter the U.S. In 2010 he helped Gyu-Kaku, a Japanese BBQ brand, enter the U.S. Today the company has 23 units in 6 states—company owned and franchised. And Fujita says they are all highly profitable. In Australia, Alan Branch, managing director of Global Franchise Partners, is helping Floral Image enter the U.S. Floral Image founder Ben Trussell says, “The USA will be the biggest market for Floral Image and a challenge we are ready for. I smile every time I hear someone say, ‘I just can’t believe these aren’t real, they look better than real flowers!’” Again, filling a niche. Lesley Hawks, vice president, western region, for St. Jacques Marketing, believes another Australian import will ride the wave of success in the U.S., de- spite delays. “I think Cherry Blow Dry Bar has been surprised at the long time it has taken to get under way here in the U.S.—selecting iconic sites, the lease process, disclosures, infrastructure, and the like. However, generally they find business much easier than in Australia, and the U.S. franchise arena much more vibrant.” The brand, which is tapping into the high-end, high-growth women’s hair blowout-only craze, has two sites in construction, in Florida and New York City, with a third location being finalized in Beverly Hills. In summary, if an international franchise fills a niche in the U.S. marketplace, follows the legal requirements, has strong operating systems, training, support, and good unit economics, there is a place for the brand in the largest franchise market in he world. n Grow Market Lead proach to product/service marketing, and strengths/weaknesses? Thousands of U.S. franchise companies with performance histories can be analyzed in many sectors for the inbound franchisor to answer these questions before they invest. William G. Edwards, CEO of EGS, LLC, has 40 years of international business experience. He has lived in 7 countries and worked on projects in more than 60. In addition to having been a master licensee in 5 countries and in charge of international operations and development for a U.S. franchise, he has advised more than 50 U.S. companies on their international development. Contact him at 949-3751896, [email protected], or see his blog at edwardsglobal.com/blog. Some Overseas Franchises in the U.S. Food Education, Retail, Service Beard Papa’s (Japan) Aussie Pet Mobile (Australia via N.Z.) Boston Pizza (Canada) Bark Busters (Australia) Giraffas (Brazil) Benneton (Europe) Gyu-Kaku (Japan) Body Shop (United Kingdom) Jinya Ramen Bar (Japan) CertaPro Painters (Canada) Le Pain Quotidien (Belgium) Fibrenew (Canada) Little Sheep (China, Yum Brands-owned) Kumon (Japan) Manchu Wok (Canada, Hong Kong-owned) Liquid Capital (Canada) Maoz Vegetarian (Netherlands) Metal Supermarkets (Canada) 100 Montaditos (Spain) Pirtek (Australia) Pollo Campero (Central America) ProntoWash (Argentina) Tim Hortons (Canada) TeaGschwendner (Germany) Vom Fass (Germany) Tutor Doctor (Canada) 85°C Cafe (Taiwan) WSI (Canada) Franchiseupdate I s s u e I I I , 2013  61