International Franchise

International Franchise Wiki

Find an international franchise and see what was transferable to another country and what was not transferable. Consider all aspects of the franchise that required changes. Post what you learn to the wiki. Include the resource for your information.

Example 1

In this week’s assignment we are to locate an internationally based franchise and evaluate why or what would spark an interest in ownership.   My diet must consist of purely organic, gluten-free products minus GMO’s and other additives. During my search for the ultimate international franchise, I quickly learned how this market (gluten-free foods) is growing expeditiously.  Research indicates, “…U.S. sales alone will reach $5.6 billion by 2015” (EHA, 2011).  I like Clancy's Meat Company.

The founder of this Canadian meat market created this opportunity to the consumer in 1976 a mission to, “to provide our customers with healthy,
delicious and unique meal options” (Clancy’s, 2014, para 1).

After reading page after page from the company’s website, I decided to do an evaluation of the initial process for Canadian and international franchise prospects. First of all, Canada admits that there is an unbalanced relationship between the franchisor and franchisee. Their laws have changed from providence to providence. But here is the latest to be provided from the franchisor to the prospect. All pertinent materials must be disclosed up front.

1.   Franchise Disclosure Legislation

2.   The Disclosure Obligation

3.   The Duty of Fair Dealing

4.   The Right of Association

“The Disclosure Obligation

A franchisor wishing to grant a franchise in any of the disclosure provinces must provide a franchise disclosure document to a prospective franchisee not less than 14 days before the earlier of the signing by the prospective franchisee of the franchise agreement or any agreement relating to the franchise, and the payment of any consideration relating to the franchise. A disclosure document must contain all of the information prescribed by the regulations as well as all other “material facts” that would reasonably be considered relevant to a prospect’s decision to acquire the franchise. The disclosure document must also contain financial statements in either audited or review-engagement form. Each of the current provincial statutes contains an exemption from the requirement to include financial statements for large, mature franchisors' who meet the prescribed criteria” (Growlings, n.d., para, 8).

I did not discover surprising restrictions, but I am aware that we must always consider cultural differences even with our Northern neighbors. The information took me my storm. I loved most of what I read. And would strongly consider bringing this franchise into the States.' Primarily, because I know far too many children and adults who can no longer eat foods that are not gluten-free. Secondly, this is a strong investment. There is an example of stake, bread, and sauce that concerns me greatly!

Clancy’s offers garlic bread and their, “…signature marinated steaks” (Clancy’s, 2014). with a sauce. Anytime I see bread, but especially a sauce, I stay away.  They offer a link to review the ingredients but I have learned, if it does not say gluten-free, I can't trust the product. I imagine such foods are consumed with gluten. In this case I would ask to add a disclosure on the bottom of each page of the menu to reflect all products are not gluten-free.

Taylor-

References:

Clancy’s Meat Company. (2014). Mission. Retrieved from

http://www.clancysmeatco.com/about/history/

Clancy’s Meat Company. (2014). Our products. Beef & Pork. Retrieved from  http://www.clancysmeatco.com/products/beef-pork/

Eha, B.P. (2011, September 11). Gluten-Free Lifestyle Offers a Growing Market for Entrepreneurs. Retrieved from http://www.entrepreneur.com/article/224387

Growlings. (n.d.). Franchise Law. Para 8. Retrieved from  http://www.gowlings.com/services/dbic/?p=18

Example 2

When any company goes international they have to look closely at cultural norms. Cultural norms play a huge part in what a business does. The United States is a much more open and free country, whereas other countries are much more conservative.  Certain cultures do not consume certain foods that Americans do, while other countries eat unusual food to our culture. A great example of this is India. India is comprised of mostly (80+%) Hindus who believe that killing cows and eating beef is against religion. In fact, most people of India are vegetarians. Some countries shy away from alcohol while other countries—France, Netherlands, Germany, and Austria—actually serve beer at McDonalds.  Some countries, like Europe, use the Metric system and therefore the Quarter Pounder is called the Royal Cheese.

            I chose to investigate further into McDonalds since it is a fast food company that most countries seem to have. In India they have a complete vegetarian menu. The McVeggie—“a rice, bean and vegetable patty that McDonald’s treats predictably with breading—or the McAloo Tikki—a potato-vegetable burger” (Nasr, 2014). In the Malaysian capital, Kuala Lumpur, they sell Bubur Ayam McD for breakfast. What exactly is Bubur Ayam McD? Hint: In Singapore they call is Chicken SingaPorridge. If you guessed porridge with chicken in it than you would be correct! It actually is a porridge with chicken, onion, ginger, chili peppers, and shallots (Nasr, 2014). In Japan they sell EBI Filet-O. Any guesses as to what this is? Hint: In Hong Kong they call it the Shrimp Burger. It is a layer of shrimp that has been breaded and is served on a burger bun with lettuce and sauce. In Egypt they sell Shawarma which is normally lamb (sometimes chicken) cooked rotating-spit style and served in a warm pita. They also have, my personal favorite, Falafels which are “fried chickpea balls” in a pita with veggies and two sauces (Nasr, 2014). Australia sells Vegemite spread that people like to get for breakfast. It is black or darker brown and is made of leftover brewer’s yeast, vegetables and spices. They also sell a kids meal called Pasta Zoo (cheese and veggie raviolis in the shapes of animals) served with “Zoo Goo” sauce (Nasr, 2014). Italy has spinach and parmesan cheese stuffed McNuggets. They also have carrot, peach, torta della nonna (“Tuscan Cheese Tart”) and torta caprese (“chocolate and nut cake”) cakes all dusted with powdered sugar on top (instead of icing—Italian style) (Nasr, 2014). Spain sells Gazpacho Soup while Brazil sells Banana Pie. Lastly, Mexico sells Molletes (McMolletes) which are “three Engish muffins, each topped with refried beans, white American cheese and a little salsa” (Nasr, 2014). It is meant to be eaten open-faced style.

            Some McDonalds choose to keep most of the menu and just add a specialty item while others choose to change the whole menu.

Reference

Nasr, S. L. (n.d.). HowStuffWorks "10 Unusual Items from McDonald's International Menu". HowStuffWorks. Retrieved May 1, 2014, from http://money.howstuffworks.com/10- items-from-mcdonalds-international-menu.htm#page=1

Example 3

When McDonald’s expanded internationally, one of the major changes they had to make was to their menu.  It was very important to customize the menu to cater to the culture they were entering.  The article, “10 Unusual Items from McDonald’s International Menu” says it all.  These items are:

•         Australia: Pasta Zoo and a side of Zoo Goo (a vegetable and cheese ravioli in the shape of zoo animals with a tomato based sauce) OR Vegemite spread on an English muffin

•         Japan: EBI Filet-O or Shrimp Burger in Hong Kong (a mix of hamburger and shrimp burger)

•         Malaysia: Bubur Ayam McD or Chicken SingaPorridge in Singapore (cup of porridge with bits of chicken, ginger, onion shallots, and chili peppers)

•         Singapore: Shaka Shaka Chicken (deep fried chicken served in a wax-paper bag to which you add spicy powder and as you “shaka” it, the spices stick to the chicken)

•         India: The McVeggie (a rice, bean, and vegetable patty).  There are no beef burgers in India as 80% of the people killing and eating cows are against religious beliefs.

•         Egypt and across the Middle East: The McArabia (two chicken or beef patties in pita bread with lettuce, tomato, onion and tahini sauce).  An imitation of the popular shawarma or falafel.

•         Italy: Spinach and Parmesan Cheese McNuggets (nuggets stuffed with spinach and Parmesan cheese) and cake slices sprinkled with powdered sugar (no frosting for an authentic Italian dessert)

•         Spain: Gazpacho (a chilled soup with a base of olive oil, vinegar, water, and bread cubes)

•         Brazil: Banana Pie

•         Mexico: Molletes (three English muffins with refried beans, white American cheese, and salsa) (Nasr 2014)

 

     Although all the McDonald’s around here have the same menus and everything tastes the same, it is weird to think a franchise could change so much.  One of the characteristics of a franchise that has been consistent is the signage, tastes, and trademarks of the brand.  While it is different for a franchise to do this, it is critical.  I think it is impressive how much the fast-food restaurant studied and caters to the culture they are in.  For example, McDonalds wouldn’t last at all in India if they carried over the same menu that they have in the United States.  To be successful you have to offer what people want to buy.

     For the Franchise Agreement Analysis last week, I analyzed Gloria Jean’s Coffees.  So I wondered for this franchise, how much if anything would change.  Although it is food/drink items like McDonalds, I wondered how much coffee would change internationally.  I compared a U.S. menu to an Australia menu.  While some of the items were the same, there were differences.  For example, both menus offer cappuccinos but only the Australian menu offers a Piccolo Latte.  Even navigating the two websites are very different.  On the Australian website the links available are hot drinks, cold drinks, merchandise, and beans and capsules.  On the website for the U.S., the links are categorized as flavored, teas and cocoas, origins and blends, k-cups, merchandise, decaf, deals, and corporate (Gloria Jeans's Coffees 2014).

 

 

Nasr, S. (2014). 10 Unusual Items from McDonald’s International Menu. Retrieved from:

     http://money.howstuffworks.com/10-items-from-mcdonalds-international-menu.htm#page=1

Gloria Jean’s Coffees. (2014). Hot Drinks. Retrieved from:

     http://www.gloriajeanscoffees.com.au/About/Products.aspx

Gloria Jean’s Coffees. (2014). Gloria Jean’s Coffees. Retrieved from:

     https://www.gloriajeans.com/