Franchise Industry Global Newsletter - 2021 First Quarter Edition

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U.S. Commercial Service
2021 First Quarter Edition


Featured Events

Portugal Franchise

U.S. Commercial Service Global Franchise Team is collaborating with the  American Chamber of Commerce (AmCham) Portugal program to promote U.S. Franchise Brands in the country.

Three levels of participation available:

            3 month $800
            6 month $1,500
            1 year $2,400
             and includes:

  • AmCham Website - A Virtual booth withinformation included about your business, logo, 2 or 3 photos, investment expectation and up to a 4,000 character description.
  • AmCham Social Networking (Linkedin and Facebook) - Your brand posted with a photo and phrase about your franchise in each social network. (Posted 1 time with 3 month contract, 2 times with 6 month contract and 4 times with 12 month contract.)
  • AmCham Direct Mail - A notice and photo published in AmCham online newspaper "USA
    Franchise News" about your U.S. Franchise brand with link to your webpage. (Notice included 1 time with 3 and 6 month contract and 2 times with 12 month contract.)
  • Webinar Pitch - "USA Franchise Discovery" A pre-recorded 10 minute video pitch on your U.S. Franchise brand posted on AmCham website, available for 6 month and 1 year contracts only.

Please email AmCham directly to receive a form to indicate your potential interest. 


IFE

INTERNATIONAL FRANCHISE EXPO

SEPT 24-25, 2021, NEW YORK CITY, NY

Join thousands of entrepreneurs and future business owners at the International Franchise Expo, the largest franchise expo in the country that reaches all industries. The International Franchise Expo is part of the Trade Events Partnership Program facilitated by the U.S. Commercial Service.

  • The U.S. Commercial Service (USCS) will return this year to recruit foreign delegations to attend a planned in-person event, and exhibiting U.S. franchisors will have an opportunity to meet the prospects from different countries.
  • The USCS will be available for export trade counselling in the International Trade Center and will assist further introductions.

MFV Expositions and the USCS Global Franchising Team are jointly planning this event as an in person expo with a virtual component. 


Franchise Webinars

german franchise stats
  • March 2, 2021 Franchise Industry in Germany The strongest and most stable economy in Europe is home to more than 930 franchise systems generating €129 billion in revenues (2018). Many U.S. and international brands have successfully operated their franchise in Germany.  Join USCS Berlin and a panel of experts to learn more about new market opportunities and resources available to franchise brands. No cost, register by Feb. 26, or email for more details.  You will receive a link to join upon registration.

 


 

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Franchise Trade Events

Contact Eric Johnson if you need more information on these events. 

Recent Event Summaries


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December 2020:  Global Franchising Team supported the Latin America Franchise Virtual Summit


  • Sixty participants virtually participated
  • Participates from Peru (80%), Mexico, Chile, Ecuador
  • Keynote: Fastsigns USA CEO; speakers from PMTD Restaurants LLC (KFC franchisee) and the International Franchise Association 

November 2020: Global Franchising Team and State Dept. Colleagues in Cameron held a workshop on Interaction Tips to Successfully Work with U.S. Franchisors & Making a Profit

  • Fifteen Cameron franchisees/ investor participate
  • Several legal entities provided their insights
  • Prepare to introduce U.S. brand franchisors to market
  • Plans exist to introduce U.S. franchisors to the Cameroon market through a virtual event.  Details forthcoming. 

October 2020:  Global Franchising Team held a Virtual Certified Franchising Trade Mission with Nigeria 

  • Eight U.S. brand franchisors participated
  • Sessions included Nigerian Market Country Briefing, specialty topics and Franchising Fundamentals
  • Over 40 meetings arranged with vetted contacts and deals are still being negotiated
  • Participating U.S. franchisors commented on the high quality meetings and introductions that has led to substantial discussions and developing deals with potential partners as an result of the event. 

September 2020: Global Franchising Team held a Virtual Certified Franchising Trade Mission with Ghana

  • Six U.S. brand franchisors participated
  • U.S. Ambassador to Ghana, Susan Sullivan, welcomed participants with country briefing, then several topic sessions and Franchising Fundamentals
  • Over 40 meetings were held by U.S. brand franchisors with 20 Ghanaian companies in virtual site visits or video reviews of their operations
  • Participating U.S. franchisors noted high quality meetings and introductions that led to substantial discussions and developing deals with potential partners as event results. 

Franchise Company Success

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Belfor Franchise Group, Ann Arbor, MI, has worked with the USCS Global Franchising Team for many years, and was eager to use USCS virtual programming to meet prospective franchisees for their home service franchise brands N-Hance; HOODZ; and ChemDry. Joe Manuszak, Vice President of International Franchise Development, mentioned “we were quite excited to participate with the USCS, as it gives us a “boots on the ground” perspective, allowed us to meet perspective candidates that have been vetted and the chance to have perspective buyers learn more about our franchise and how it could be a great investment for them.” These virtual trade missions, developed by the USCS Franchise team, provided a platform for companies to find opportunities, as recovery in 2020 was about franchisees returning to operation, and salvaging sales cycles for franchisors. Belfor has been very happy with the outcomes of the virtual events and signed agreement toward a franchisee in Ghana. Manuszak offered, “to say we were thrilled with the success of the show is an understatement, as we were able to garner a signed agreement for a Master Franchise in 1/3 of the time it normally would take to process the same deal organically”. Manuszak commented that working with USCS Franchise team, “they understand our industry and are committed to the ongoing recovery and success of the U.S. franchise industry.”  


More Global Franchise News

Tri-annual (Sept. 21) Global Franchise Regulation Update, Source: Lanthrop GPM



Contact your local International Trade Franchise Specialist for assistance in using U.S. Commercial Service for your franchise export expansion efforts. 

Franchise News

South Africa:  U.S. Franchisors in confirming signed development agreement in South Africa should have their South African based franchisee / licensee clients, via their bankers, submit their exclusive development/license agreement to the SA Reserve Bank (SARB). SARB then authorizes their bankers to permit forex transactions based on royalty fee invoices. Local partners then need to re-apply/submit again when their development/license agreement come up for renewal.  This takes care of concern over receiving payments out of South Africa. 


Guyana is one of the fastest growing economies in the Western Hemisphere projected to grow by 8.1% in 2021, Source: IMF, Oct 2020 World Economic Report. Despite the global crisis environment, Guyana’s GDP for 2020 is expected to be evaluated at 26.2%. Guyana has a diverse economy in agriculture, oil and gas and manufacturing sectors with additional new loans by the private sector to impact the country for further growth. In 2019, private sector fast-food industry entities, reported a compounded annual growth rate of 25%, with growth limits from income and escalating real estate prices. From August to December 2020, Guyana attracted over eight international hotels, to include Marriott, Hilton, and Best Western, and over US$1.4 billion in hotel development deals were signed.  


Jamaica maintains a strong, resilient economy amid the pandemic, and continues to be attractive for franchisors. Jamaica’s population is 2.7 million people, and prior to pandemic would host 3 million tourists annually. Jamaica’s largest trading partner is the U.S., accounting for 40% of total trade. KFC, PIzza Hut, and Burger King have been particularly successful in Jamaica, boasting a combined 80 outlets. Recently, Popeyes, Little Caesars and Starbucks have entered the market, and even Payless and Radio Shack have also found a niche in Jamaica. Given its strong fiscal position prior to the pandemic, the Jamaican government has utilized resources to support the economy and should position itself for a quick economic recovery in comparison to its regional neighbors. Jamaica, for these regions, is an excellent destination for franchisors seeking nearshore destinations.


Ukraine Franchising:  In the next few years, the franchising legislative environment is expected to strengthen, with consumers increasingly demanding international brands. New data shows that Ukrainian entrepreneurs increasingly prefer franchising when it comes to expanding their business. The franchising market is gaining momentum with the number of franchising outlets growing consistently year-over-year. According to the Ukrainian Franchise Group, more than 504 franchisors and 19,034 franchise outlets are now operating in Ukraine. In recent years, many U.S. and international brands have successfully operated their franchise businesses in Ukraine including such companies as Dominos Pizza, KFC, FitCurves, along with a variety of local franchises in food, retail, services and other industries. Most Ukrainian franchises are concentrated in the capital and Ukraine’s largest populated cities such as Kharkiv, Dnipro, Odesa, and Lviv. Other cities are not yet acquainted with franchising, and present significant opportunities for growth.


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