
Expanding into a new country can be exciting, but it’s also one of the most complex moves a franchisor can make. Instead of launching a brand from scratch in an unfamiliar market, many companies are finding that acquiring an established international franchise is a smarter, faster path. Acquisition provides local expertise, an existing customer base, and operational infrastructure, but it also comes with unique challenges that require careful planning.
Here are several things to keep in mind if you’re considering acquiring an international brand.
Conduct market due diligence
It’s critical to have a deep understanding of the market you’re entering. Beyond the usual factors considered for domestic growth, franchisors need to research customer behaviors, competitive dynamics, local regulations, and economic conditions. A brand that works well at home may need adjustments to succeed abroad.
Acquiring an established franchise allows for valuable insight into these factors, but due diligence is still essential. Franchisors should analyze historical performance, franchisee satisfaction, unit economics, market conditions, and growth potential. Identifying potential risks or structural challenges early helps ensure the acquisition supports long-term strategy rather than creating unforeseen complications.
Understand legal and regulatory differences
Every country has its own set of rules for franchising. Disclosure requirements, franchise agreements, labor laws, and other regulations can vary widely, so understanding the nuances is extremely important. Working with experienced local legal and financial advisors is critical to make sure you’re compliant and to prevent costly missteps.
Before bringing an international brand into your portfolio, review existing franchise agreements carefully. Franchisors should make sure these agreements align with both local laws and company standards. Getting this right from the start sets the tone for smooth operations and builds trust with new franchisees.
Combine strengths without losing identity
One of the biggest challenges of an acquisition is knowing what to integrate and what to leave as-is. Established brands earn strong reputations through market-specific practices, long-standing relationships, and operational expertise. Imposing internal processes too quickly can cause friction and slow growth.
Instead, focus on preserving the strengths of the acquired brand while introducing your core standards and values. Think of it as blending decades of experience, operational excellence, and shared goals to create a stronger, unified system. Over time, sharing best practices elevates performance across the portfolio without disrupting what already works.
Build a cross-border support system
International expansion is most successful when people and infrastructure are aligned. Retaining strong local leadership is critical. These leaders understand the market, know the customers, and can bridge the gap between the larger company vision and day-to-day operations.
At the same time, franchisors must ensure support systems, such as training, technology, marketing, and operations, are ready to scale across borders. When franchisees feel supported and connected, the customer experience remains consistent, and the brand can grow sustainably.
Lead with a long-term vision
Franchisors should view an acquisition not as a one-off deal, but as a long-term strategic investment. Approach growth with patience, set realistic timelines, and prioritize franchisee success and satisfaction. Continually evaluate how international operations fit within your broader business strategy.
When done thoughtfully, acquiring an international franchise can be a powerful growth strategy. By doing the homework, respecting local regulations, combining strengths, and investing in leadership and infrastructure, franchisors can enter new markets confidently and create lasting value for both the brand and its franchisees.
Barbara Moran-Goodrich is the CEO of Moran Family of Brands, a leading franchisor of automotive services and the parent company of six individual brands, including Mr. Transmission, Milex Complete Auto Care, and Turbo Tint.
Story originally published on: Franchising.com