Irrespective of whether you are treading the well worn path into France, or exploring the less familiar potential of Lithuania, the approach should be the same. Max McHardy, head of franchising at BDO Stoy Hayward Management Consultants, a bfa affiliate advisor, says: You need to have a thorough knowledge of the environment before you go in.’

Local taxation and regulatory schemes vary from country to country. In some territories, there will be tax to pay on royalties before it can be brought out of the country. Employment law also varies enormously across different countries. ‘Culture is key,’ says McHardy. ‘It will affect your market in terms of getting the local populous to take your product and also in terms of doing business.’

Executive recruitment franchise Antal International, an associate member of the bfa, has a fully integrated network throughout Europe, including the emerging economies. In Croatia it has already generated substantial income, while in Romania it is seeing strong growth and expanding its franchised network. The company appointed a master licence and opened its first office in Bucharest in October last year, but not without initial worries.

Managing director Kevin Cox says: ‘One of the main concerns was the level of fees charged to clients; typically 25 to 30 percent of the appointee`s first year’s salary. Our master licencee felt those rates were too high for Romania where wages are much lower than in the west. The solution was to target multi nationals that were familiar with those fee levels, rather than smaller firms that weren’t. The process of integrating western recruitment industry standards involved a total re-education of business culture, but it has been successful and we now have offices in other parts of the country.’

Franchisors should not underestimate the level of investment required for thorough market research. Alick Jones, national franchise manager with Lloyds TSB, a bfa affiliate member, says: ‘It is important to explore all the possible options, which include franchising direct, granting a master licence, or entering into a joint venture with an established business in that country, and that will cost money. Be wary of direct approaches from individuals overseas. If you are building a pan-European brand you must ensure that the business will be developed along the exact same lines in each country.

Language should not pose a significant barrier as English is widely accepted as a primary business language, and most franchisors insist on an English speaking master licencee. It is important to research the franchise support structures in these countries; few are as well developed as those of the UK.

As part of National Franchise Week the bfa, in conjunction with the International Franchise Association, will be running an International Franchising Symposium in London at the DTI's conference centre in London, October 6 and 7, with the aim of giving a better understanding of the various international legal, financial and cultural obstacles encountered when establishing and operating a business on a global scale.

For more information on this and international franchising generally, visit www.nationalfranchiseweek.co.uk or www.thebfa.org