No dream is too big if you’re an ambitious entrepreneur. This mindset includes exploring international franchise opportunities. Thinking on a global scale allows you to attract more customers locally and abroad, increasing the potential for more profits. However, partnering with the right franchise is essential. Researching this investment opportunity will help you decide whether to investigate it further.

What is International Franchising?

International franchising is a business model where a company (the franchisor) allows you (the franchisee) to run a business in other countries under its brand. The steps to becoming a franchisee typically involve an application and an interview to see if this could be a successful partnership.

In return, you pay initial investment costs and royalties for using the business model, training programs and ongoing support. For example, fast-food chain McDonald’s is one of the best-known international franchise companies. Around 95% of all McDonald’s locations worldwide are franchises.

According to market insights, the global franchise market was valued at $121.36 billion in 2023 and is expected to grow to $279.91 billion by 2032, with an annual growth rate of 9.73%. This growth shows that franchising can be a lucrative career move if you want to scale your business. Moreover, a new trend in international franchise companies is the rise of eco-friendly and sustainable franchises, as consumers increasingly prefer businesses that focus on environmental responsibility. So, if you can tap into this green trend, it may help you stand out in a competitive market wherever you are.

Equally important, technology makes it easier for brands to expand globally. For instance, social media, SEO, and online advertising allow you to effectively target international customers and create brand awareness in new markets.

Furthermore, according to the International Franchise Association (IFA), the economic outlook is bright in the US. The number of franchise establishments has increased to 821,000 in 2024.

Benefits of International Franchising

Discover New Markets

The world is your oyster, so the saying goes. In other words, it is full of untapped possibilities. With hard work and the support of a successful franchise brand, you can seize franchise opportunities and succeed in whatever you pursue – wherever you choose. International franchising allows you to expand your brand into new, untapped markets, increasing the potential for revenue growth and diversification. The sky’s the limit.

Enjoy More stability

International expansion can be challenging. Each country has its own business laws, taxes, and regulations that you must get to grips with. But franchisors provide ongoing support and guidance, ensuring consistent quality and brand standards across international markets. As a result, you will enjoy more stability when growing your business.

Work With Established Brands

The benefits of international franchising include working with top-level brands respected and successful in their field. Their robust business models enable them to expand to other countries and attract ambitious franchisees – like you! This support can give you a sense of security and confidence as you grow your business. See which industries are most likely to franchise.

Lower Your Financial Risk

Securing capital for startup costs can be easier if you invest in a proven business model and an in-demand product or service. For example, you may find that banks and lenders view your business plan more favorably if you partner with an internationally successful brand. Moreover, an international franchise opportunity can be more cost-effective than trying to start an independent business in a location abroad.

Be Part of the International Business Network

International business franchise opportunities also allow you to build strong relationships with like-minded business associates and entrepreneurs. Equally important, being part of the international franchise network can lead to shared learning, innovation, and best practices. Working within an organization also helps maintain brand consistency. Overall, you’re working closely with experts in their field who can help you get an edge on your competitors.

Other Factors to Consider

While international franchising has benefits, it’s important to be aware of the flip side. For example:

• Partnering with international franchise companies can work out expensive. For example, the initial cost to open a quick-serve restaurant (QSR) can be around $2 million. If this is too much, explore low cost franchise opportunities
• Each country has its own set of laws and regulations. Navigating these can be tricky, especially when it comes to labor regulations, franchise disclosure requirements, or tax laws.
• You could face stiff competition from local businesses who know the market and their customers. For example, there are cultural differences. Understanding local consumer preferences, spending habits, and trends takes time and research.

International Franchise Companies

The best way to get familiar with international franchises is to look closer at some of the most popular companies known for their global presence. For example, top performers are in the food and drinks industries and automotive franchises. Companies like DetailXPerts, Taco Bell and McDonalds have successfully expanded their operations globally.

International Car Washes and Automotive Franchises

DetailXPerts

International car wash DetailXPerts has franchise locations in the States and Dubai. The company started franchising in 2008, building a reputation as a water-saving car wash. Water scarcity in the UAE sparked interest in the company’s steam-cleaning technology that uses minimal water to clean and sanitize. As a result, DetailXPerts sold a master franchise in Dubai, kick-starting the brand’s successful franchise journey. See Inside the Mind of a Franchise Business Owner and tune into the “More Details, Please” podcast to learn more about international franchise opportunities.

Equally important, you can explore 3 lines of business: mobile car washing, fleet cleaning, and janitorial/commercial cleaning services. Target customers (B2C) and businesses (B2B) to maximize profits. The initial investment cost is £103,500 to £240,000.

Mighty Auto Parts is also a big name in the international franchising scene. Mighty is a member of the International Franchise Association’s VetFran Program, offering franchise opportunities for veterans. The initial investment for this auto parts franchise is $248,000 to $596,000.

Ziebart is another automotive franchise opportunity on a global scale. It has specialized in vehicle appearance and protection services for 65 years. The company has 400 worldwide licensed locations in 37 different countries. It is also one of the absentee owner franchises. The initial investment is $417,000 to $566,000.

Quick Service Restaurants

McDonald’s

McDonald’s operates in over 100 countries, with more than 38,000 locations worldwide. In the fast-food world, burgers and fries never go out of fashion. These international franchises are run by entrepreneurs who stick to the company’s strict guidelines and standards but adapt their menus to suit local tastes and cultural preferences. The company’s global portfolio includes Australia, the United Kingdom, the United States, Germany, France and many more countries. The initial investment cost is $1.5 million to $2.6 million.

Subway

Subway says its global success comes down to flexibility. For example, if you’re an experienced franchise owner, you can quickly scale your portfolio with multi-unit opportunities. The initial investment cost is $229,050 to $522,300. Note that how much you invest depends on whether you acquire existing restaurants, remodel or build new stand-alone locations.

Taco Bell

Taco Bell is a leading brand in Mexican-inspired food with over 8,400 restaurants globally. The Taco Bell business model is so popular the company has been named the #1 franchise on Entrepreneur’s Franchise 500 list for several years running. It’s part of the world’s largest restaurant company, Yum! Brands that also own KFC and Pizza Hut. The initial investment cost is $611,000 to $4 million. As with all QSR franchises, it is not a work from home franchise.

Baskin-Robbins

If you have a taste for an ice cream franchise, you have lots of choices. For example, Baskin-Robbins serves up ice cream, frozen yogurt and frozen beverages. You can open a traditional restaurant or a non-traditional space at airports, stadiums, and universities. With more than 7,800 locations globally, Baskin-Robbins is the world’s #1 chain of dessert and ice cream franchises. The initial investment is $294,000 to $642,000.

Conclusion

To sum up, international franchise opportunities can help take your business to the next level and scale your portfolio with the support of an established and successful brand. Moreover, opening a business in different countries means not relying solely on your home market. It can be a money-making move if you have a product or service that stands out from the local competition.

However, taking your business international requires considerable investment, and some costs run into millions. But don’t be put off because affordable franchises are available, specifically ones that don’t need expensive real estate. For example, DetailXPerts is a successful mobile auto detailing and commercial cleaning franchise that brings a greener clean to the customers. All you need is a fully-equipped van to bring your water-saving services to an international market.

Download our Business Model Overview to learn about franchising around the world.