Expandeers-Expanding Middle East’s Franchise brands to European markets

Michael Fishan-Reinhard Co-Founder & Managing Partner

Michael Fisahn-Reinhard is the Co-Founder & Managing Partner of Expandeers Global Network. He is an international sales & marketing entrepreneur who founded global-sales-help.com in 2013. His core competency is market development and turn-around of international operations. Michael has a degree in business administration and international marketing, earned at the University of Hannover (Germany) and at the University of Norman Oklahoma, U.S.A. 

1. Can you please give us short overview about your company?

Expandeers is a German Based leading specialist for internationalization, comprising of well over 50 experienced and accredited experts and executives around franchise business development, growth strategies, sales and marketing. These experts are spread around the world to support companies on site with their experience and established network: Global Expansion with Local Expertise!

With Expandeers established SME as well as funded Start Up companies can easily expand into any market worldwide and grow their reach and eventually business. In addition to pure consulting business, Expandeers also provides customers with the complete range of on-site implementation services, such as office setup, staffing, marketing, acquisition, and sales operations. Mission of Expandeers is to make internationalization for every SME as convenient, efficient, and risk-free as possible with a transparent and performance-oriented pricing.

2. What services does Expandeers Global Network provide?

We provide detailed insights into the foreign market, develop a suitable entry strategy, and offer all business, sales and marketing-related development services from one single source. Focus target segment are midsized 3-I customers, which offer an innovative service or product, are aware of the challenges of internationalization and do know, that exploring new markets always means an investment into the future. The industry expertise ranges from mechanical engineering, electronics, pharmaceuticals, FMCG, restaurants and franchise concepts, through software, apps and cloud solutions to online marketing, e-commerce, ad tech and products and services connected to artificial intelligence.

3. Can you give us some information about the European economy?

There are an estimated 22.5 million small and medium sized enterprises (SME) in the EU. From that, the European Franchise Federation (EFF) estimates there are 8,500 distinct franchise brands. Despite the vast language and cultural differences in Europe, franchising is more widely used as a business strategy in Europe than it is in the United States – which has an approximate 2,500 distinct franchise brands.

Europe’s population is increasing through a combination of natural growth and net migration. At the same time, the population of Europe is an ageing one as life expectancy increases due to life conditions while fewer children are born. The European Union’s (EU27) GDP was estimated to be around 15 trillion USD (nominal) in 2020, representing around one sixth of the global economy. Largest market standing for 25% of the EU’s GDP is Germany. France caters for 17%, Italy for 12% and Spain for 8%.

4. Do you have some advice for Middle East franchise brands who consider going on the European market?

One of the potential ways of growing internationally is by giving out licenses for brand, the concept and supporting elements and structures, i.e. franchises. As with any expansion into any new market, there are three major prerequisites to be taken care of.

Know the target market:

Get acquainted with culture, behaviors (business and consumers), government and legislations, political, economic and ecological surroundings. Get to know the official bodies such as the European Commission, EU office for intellectual property and the European Franchise Federation to name a few. As cultures do differentiate, tastes, trends, virtues and views do as well. Do not enter a new market assuming you can attract customers to your product or service in the same way you do in your domestic market. The same principle applies to market your franchise opportunities to franchise takers abroad. For example, in Europe, the McCafé is indeed a café, serving coffee in china cups with saucers. The product line at a Starbucks in the U.K. will be different from the one in Greece. It sounds like a given, but too many franchisors still believe in the one-size-fits-all strategy, despite the competition on the ground.

Evaluate potentials:

Foreign concept penetration among franchise brands can be very high in European countries, exceeding 70% in places like Croatia and Slovenia. Their success comes from accepting and managing local adaptions, such as tastes and products. It is also needed to look at the potentials, purchasing power, the pricing levels, the way the brand is perceived and how it is being communicated and even how appealing the inventory seems.

Rely on the right partners:

Partners in the long run will be your future franchise takers. Before that, you need to find and evaluate a trustworthy mediator who finds the right potential partners. Expandeers supports to find the right local contacts, which is essential in understanding how to adapt your brand, and how to maximize its potential in any given market.

5. How can Expandeers help Middle East franchise brands to conquer the European markets?

Expandeers can help Middle East franchise brands in many ways. Some examples include but are not limited to the following activities:

* Evaluation of market readiness of franchise brand for EU markets

* Potential analysis and identification of growth areas

* Market research and market study on target markets

* Identification and introduction of potential franchise takers

* Moderation of selection process, negotiations, contractual work

* Participation at franchise fairs in client’s name

Please contact Expandeers (Middle East) office at: MiddleEast@expandeers.com

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