For any successful U.S. franchise, the next logical step to expanding further afield is moving into
the United Kingdom and Europe. Franchise expert Derek Cafferata shares some insight on this.

Powerful Economies

Europe is the world’s third-largest economy by nominal terms, with a Gross Domestic Product (GDP)
of $16.6 trillion as of 2022. The United Kingdom is the fifth-largest economy, with a GDP of almost
$3.2 trillion. Combined, these two markets represent almost one quarter of the world’s economy.

These huge markets offer significant expansion opportunities to companies who have already made
successful expansion within the United States. From a world stage perspective, the UK and Europe
are a logical step when considering international franchise expansion due to their long-standing
stable markets. While China does offer a larger marketplace, it also brings some unfamiliarity with it
in terms of business. Hence the attraction for many companies to head to Europe and the UK first.

Offering Fewer Barriers

One of the biggest drawcards for expanding into the UK market is the language. While there might
be the odd difference in social nuances between the U.S. and the UK, the language does not create
any barriers. And business, particularly franchising, runs fairly similar with both countries.

While Europe has some language and cultural differences, the vast percentage of Europeans are
multi-lingual, with English commonly spoken and understood.

According to Derek Cafferata, CEO and President of franchising experts All State Franchise Finders,
franchising internationally makes a lot of sense.

“For companies who have successfully expanded throughout the U.S. and feel they have reached
their full potential in that market, the UK is a great step onto the international franchising stage,”
says Derek. “And once you’ve established your UK market, it makes sense to take that next step into
Europe.”

Vibrant Franchise Markets

Franchising in the UK and Europe is a strong and popular choice for many entrepreneurs, especially
amongst Millennials. According to the British Franchise Association, one in five franchisees is under
the age of 30.

Young people are seeing the benefits of getting into the franchising industry, particularly with the
move to a more flexible work-from-home concept as well as franchising giving more opportunity to
escape the stress and pressure of the corporate world.

“These international markets are best approached with a master licensee agreement,” says Derek.
“Spend the time finding someone who is familiar with the market, who understands franchising laws
and regulations and who is keen to tweak the business to suit the consumer and the demand.”

Demand for American Products

As has been seen for several decades now, the UK market is very keen for U.S. brands and demand
always remains high.

“Moving an established brand into the UK market has been done very successfully by so many
American companies,” says Derek. “UK consumers hold a high respect for U.S. brands as they see
them as trustworthy, innovative and offering value for money.”

In the European market, demand for U.S. brands has always been high, particularly in countries that
have traditionally had tight import/export restrictions

Franchise Experts ALLSTATEFF.COM

Derek Cafferata leads a strong and dedicated team of franchising experts at All State Franchise
Finders. With decades of franchising experience within the U.S. and internationally, the team at All
State Franchise Finders has helped a large number of entrepreneurs move into the franchising
industry in one way or another.

If you’re looking to expand into the international franchise market, then be sure to contact the
award-winning franchise experts at All State Franchise Finders. Call today on 1-800-544-2161 or visit
ALLSTATEFF.COM today. All State Franchise Finders – your award-winning franchise experts.