Talk on the Street
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Talk on the Street
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Business owners looking to franchise into areas like Turkey and Israel often find master franchising to be the best method of international franchising.
Expanding a business globally takes careful consideration and planning as well as in-depth knowledge and experience about the area one is planning to branch out into.
For those looking to franchise into areas like Turkey and Israel, master franchising is often the preferred method.
Master Franchising Method
While there are a few different methods of franchising, master franchising is one of the most popular ways for businesses to expand internationally into new and foreign markets, in particular into Turkey and Israel.
Master franchising is where the master franchisor, or the business owner, hand over significant control of franchising to the master franchisee. Usually, the master franchisee is given a large area where they have the rights to sub-franchise smaller units. In this case, the master franchisee also becomes a franchisor.
According to Derek Cafferata, CEO and President of All State Franchise Finders, master franchising is suitable for companies moving into new international markets where they have had little or no business experience. “Markets like Turkey and Israel, who have really clicked onto the concept of franchising, are a great place to expand using the master franchise model,” said Derek. “Handing over to a master franchisee who has a clear understanding of the local market can be a huge advantage to the success of future growth in a new market.”
Franchising into Turkey
It is generally due to the tax laws as to why the master franchising model is the preferred option when expanding into Turkey. Choosing to set up a master franchise without establishing a presence in Turkey means the head franchisor is considered a non-resident and is subject to paying tax only on the income derived within Turkey.
Should a company choose to establish a company in Turkey, they would then be subject to paying tax on income derived from within the country as well as income derived from abroad.
Franchising into Israel
When looking at the Israeli market for franchising, Israel is a solid prospect. With a stable economy, strong banking sector and its highly advanced technological exporting market, Israel sits highly at number 52 on the Ease of Doing Business Rankings.
It is for these reasons the master franchise model is the preferred method for many looking to branch out internationally.
International Franchise Experts
One of the keys to successfully expanding into foreign markets is to utilize the knowledge and experience of someone who specializes in international franchising. All State Franchise Finders is one of the few companies who have the experience and knowledge to help those looking to grow their business globally.
Based in Fort Worth, TX, All State Franchise Finders work with companies looking to expand throughout the United States and around the world. With over 3 decades of experience in the franchising industry, Derek Cafferata and his team at All State Franchise Finders work with franchisors and potential franchisees, offering expert advice and guidance through the process of business expansion through various franchising models.
For more information about international franchising, contact All State Franchise Finders on 1-800-544-2161 or visit allstateff.com today. All State Franchise Finders – Your Franchising Experts!