Currently around 30 percent of UK franchisors have an International presence, with 28 percent operating in Western Europe, and five percent in the United States. Simon Wise, deputy director of the British Franchise Association, says: “As more and more franchises achieve success in the UK, a growing number are considering overseas expansion, but it has to be part of a well-prepared, well-researched proactive strategy.”

Help is available. The bfa is a member of the European Franchising Federation, representing national franchise associations throughout Europe.
“The association relevant to the country you are researching should be your first port of call,” adds Wise.

One franchise that has made a huge amount of international success is Stagecoach Theatre Arts, a full member of the bfa. Founded by forrmer actress Stephanie Manuel, together with David Sprigg, a former banker, Stagecoach is now operating in seven countries overseas and has more than 28,000 students.

Stagecoach launched a pilot operation in Nuremberg, Germany five years ago, and has since run five pilot company owned operations in and around Nuremberg where it provides Saturday schools teaching more than 250 young people, from the age of six to sixteen, singing, dancing and drama. The company recently announced the opening of its first two franchised schools in Germany, in Frankfurt and Stuttgart, in September, ahead of schedule. All of this follows the company’s recent successful launch in the USA.

Manzoor Ishani, franchise development director for Stagecoach Theatre Arts, says: “The footprint of the farmer is the best fertiliser. From my experience it is always better for the franchisor to make the investment overseas and to do it themselves’ as opposed to selling a Master Licence. The Stagecoach brand is becoming well recognised in Germany and given the success of our pilot operations we anticipate substantial growth during the next five years. Long term, we envisage opening at least as many schools in Germany as we have in the UK.”

The biggest barrier to international franchising for UK companies appears to be the tide of franchise legislation currently sweeping across Europe. Mark Abell, a partner at bfa affiliate solicitors Field Fisher Waterhouse, says: “France, Spain, and most recently Italy have all introduced franchise legislation. The problem is that although in principle they are same, in practice they are all slightly different, which has made British companies wary of proceeding. However there is real potential in Europe. France, Spain and Germany are all making a go of it, and Britain should do the same. The legalities are not a problem as long as you take professional advice from a solicitor that specialises in international franchising.”

As part of National Franchise Week the bfa will be running an International Franchising Symposium in London at the DTI's conference centre in London, October 6 and 7 (see details on this website), in conjunction with the International Franchise Association and with support from the European Franchise Federation and World Franchise Council, to educate on global franchising and encourage greater activity. For more information on this and international franchising generally, visit www.thebfa.org