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International franchise success secrets

2nd Nov 2009

Gloria Jean’s Coffees is in 38 countries and counting, so it’s easy to understand why they won this year’s Franchise Council of Australia International Franchising Award.

Gloria Jean’s Coffees Global Capability Manager Karli Furmage, shared with me some success secrets which have led the brand to become one of Australia’s, and indeed the world’s, most successful international franchise businesses.

Karli is speaking at our Franchise Forum this month (November 18) in Brisbane, but said I could let you in early on a few of her secrets (as long as I save some for her at the Forum).

International franchise success secrets:

  • Don’t assume your franchise model will work internationally and get the right advice.

“Look at your franchise business, understand its key elements and what’s unchangeable or core, and what needs to be tailored to meet local market needs,” Karli said.

“You also need to get the right advice. Gloria Jean’s Coffees seeks four key types of advice and home-grown knowledge is a critical part of the process.

“We draw on local expertise of our partner, use local lawyers recommended by our Australian law firm, draw on Austrade and other external data for market analysis, and Austrade again for export knowledge.”

Karli will go into greater detail at the forum, but added you’ll also need a core team of people who have experience in international expansion.

  • Don’t rush in – do your homework, be prepared and select the best candidates.

Karli says it’s important to build credibility in the region before entering a market.

As part of this Gloria Jean’s Coffees attends conventions and workshops, in a process which can take years. (Don’t expect to visit a country once and be able to set up shop).

At the Forum Karli will also discuss their market evaluation tool and the criteria you should be assessing if looking to expand internationally.

“We also get advice on the regulatory arena, (particularly for China) and ensure we can comply with requirements,” Karli said.

She said when selecting the right franchise partner the potential partner with the most money wasn’t necessarily the best choice.

“We do robust reviews with all candidates and don’t just accept the one with the highest money offer,” Karli said.

“We spend considerable time meeting them, seeing their in-country operations and use a comprehensive process to assess partner compatibility, which looks at everything including alignment to our values.

“And we stick to our master franchise model and don’t compromise just to get a deal done.”

For China, Gloria Jean’s Coffees has also created a candidate ranking tool, which makes partner selection much easier. Karli hinted she would touch on this at the Forum too.

Karli also added it’s important not to go too wide too soon. Franchises should instead focus on going deep early on.

And the question which is getting asked more and more…

  • Franchising in China – is China ready?

“China is a high growth market and ready for franchising, at both the master level and for individual franchises,” said Karli.

“However, the real question to ask is are you ready for China? Is there a market for your service or product and will your business model work?”

Hear Karli Furmage, as well as other franchising greats, at the Franchise Forum 2009: How the best thrive in any environment, on Wednesday, November 18 at Griffith University’s South Bank Campus, Brisbane, and hear the rest of Karli’s secrets for international success.

Read more: Lorelle Frazer

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