Having a franchise is an effective way when you’re starting a business. The advantage of a franchise over a new business branding is that it has established its brand and reputation well over a number of years. Moreover, their customer base is so vast that it’s less likely not to be patronized by consumers. If you’re thinking of starting a franchise, consider the list of locations below to ensure your business’ success:
1. United States
Since most of the world’s successful businesses originated from the United States, it’s still a good strategy to put up franchises within the country. With a lot of rural areas that are yet to be developed, building new franchise locations will likely still generate profit. Moreover, since their consumer base is well established, it’s guaranteed that all franchises have the opportunity to gain earnings in all states in the country.
Product acquisition and replenishment of inventory are also more manageable if you put up a franchise in the US since most of their local warehouses and suppliers are in the country. You don’t have to worry too much about the added costs and efforts of handling imports for the products for your franchise. Operation costs are generally cheap in the US. It depends on your strategy on how you’ll be able to maximize profitability. You can check franchise opportunity reviews on what type of business franchise you can invest in.
Japan is known to have one of the strongest economies not just in Asia but all around the world. With its rich culture and tradition, Japan also embraces a mix of international culture by allowing other stores and restaurants to be established in their country.
What makes it interesting is that they even incorporate some of their local delicacies in fast food chains that originated from the Western countries. For example, the McDonald’s chain in Japan serves a product called ebi burger, which is made out of shrimp instead of beef. This is inspired by one of the famous Japanese dishes, the ebi tempura. Another product they offer is a teriyaki burger. Instead of the traditional mayonnaise and cheese dressing, they included their renowned teriyaki sauce.
What makes franchises interesting in Japan is that they have established a unique set of products that are limited to this particular country. This strategy is a sure way of maximizing the profitability of franchise businesses in Japan. Knowing the local customers’ preferences in the taste of food is a sure way to patronize franchises that originated in the US.
Another strong competitor in the world market is another Asian country—China. It’s famous for mass producing almost all products you can think of, and they also have the lowest cost of labor. Franchise businesses are successful in this country because of its low operating costs and cheap materials that are used in these businesses.
Moreover, China has been reported to have cities with the most expats from all over the world. With this, international franchise businesses won’t have to struggle with the Chinese community since they can establish their customer base from expats.
With its proximity to the United States, the Canadian economy is also conducive for housing the most successful franchise business from their neighboring country. Accessibility in raw materials and equipment make franchises experience smooth sailing trading operations. The influx of migrants all over the world to this country can also contribute positively to the success of franchises.
The German people have this propensity in speed and convenience, that’s why franchise businesses—particularly fast food chains—are well patronized in their country. There are almost 1,500 McDonald’s business franchises in Germany alone, making it the country in Europe with the most number of McDonald’s branches.
The success of franchises in this country is absolute proof that a franchising business should not just have a good reputation in their branding and the products they offer, but also their delivery system.
The land down under has the affinity for business franchises as well. Australian people love fast food chains. This has been proven by a high revenue of sales totaling over than $4 billion a year. No wonder business franchises are thriving and gaining profitability in the Australian market. Also, the performance of franchise businesses in this country proves that you don’t need an overly dense populated area to make your business successful, as it’s more important to have loyal customers who’ll patronize the business.
The locations mentioned above are just some of the countries that house the most number of franchised businesses. The reasons why franchises became successful in these countries vary from one another. Keeping up with consumers’ preferences, low operational costs, and having a loyal customer base are some of the reasons why franchised businesses continue to maximize their profitability.