Fortunately, a partner would like me to help their clients expand abroad.
Unfortunately, these clients mainly need franchisees.
To avoid further misunderstanding, I clarified that it's not my strength to provide franchisees abroad, but there's still some space where I can work, and we can discuss as needed.
It's easy to think that I want to expand my mature brand with some local franchisees abroad because the system has been verified domestically, with investment scope, operational support, training, etc. However, do we know whether it's actually ready for Europe? Here're some examples:
1. European Franchise Readiness Report + Action Plan
1) Is the brand positioning understandable to European consumers?
2) Is the product suitable for the target market?
3) What needs localization?
4) Does the pricing model work?
5) What is the expected payback period?
6) Which parts of the Chinese operating model cannot simply be copied?
7) What regulatory / food/employment/franchise issues need specialist review?
8) What kind of franchisee would actually succeed?
2. Target Market Franchise Model Design
Brand → target customer → market → unit economics → franchisee economics → operating model → expansion strategy.
That's the logic, and I need to structure the question, identify what information is missing, research it, and coordinate specialists where necessary.
3. Market Selection
This should be based on:
1) consumer demand;
2) competition;
3) rent;
4) labour;
5) purchasing power;
6) Chinese/Asian food acceptance;
7) regulatory complexity;
8) franchise environment;
9) potential store economics;
10) city types;
11) potential customer segments.
4. Franchisee Qualification System
Here's a screening framework:
1) Capital available: Can they actually invest?
2) Local market knowledge: Do they understand their city?
3) Operating experience: Can they run a business?
4) Motivation: Why this brand?
5) Time commitment: Passive investor or real operator?
6) Location access: Can they secure suitable premises?
7) Long-term commitment: Will they stay through the difficult period?
8) Expectations: Are their expectations realistic?
There's a gap that both sides should close. Even if the brand has 300 stores in China, the owner might think European investors should be excited. The European potential franchisee would wonder: “I've never heard of you. Why should I put so much euro into this?”
Neither side is necessarily wrong. They're operating from completely different assumptions. The mismatch and changes should be resolved.
What I can contribute is the strategic and consulting side before they commit significant resources and around the franchisee acquisition — assessing whether the brand and franchise model are ready for a specific overseas market, identifying the right target market and franchisee profile, testing the business assumptions and economics, and helping evaluate and qualify potential partners.
