This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

International Franchising Opportunities Reach Far

Secondly, are you sure that you are committed? You can't do international expansion of a franchised concept halfway. You have to be committed to it. Having spent nearly 30 years in international franchising I still see people take brands overseas, but they're not really ready to make that type of commitment.

If you look at it as a wide-open space where you make a lot of money -- and you can -- but you're going to make an investment upfront. You're going to have to build some infrastructure to support it. Selling the franchise is step one. You have to be able to support it, just like you would here, only you're starting many times from scratch.

How do you build brand loyalty?

Shattuck: It's not really that much different than it is here. It's all about providing good, quality foods in a friendly environment. The basics are definitely transferrable. Your target market, your position, you may tweak that, but you're still in the business of providing value for your money.

What are some common mistakes made by franchises that go international?

Shattuck: Understanding who that franchise partner should be. Oftentimes that's a mistake that's made and then you're in a difficult situation from the beginning.

Many times restaurant brands are more difficult than snack brands. With a restaurant brand, it can easily take two to three years to get to the point where you start realizing a return on the investment.

How much should a franchise change to respond to cultural differences?

Shattuck: To me there is a core essence and being of every brand. And at some point franchisors need to question, 'Is that being compromised by doing this product or by doing this type of prototype or design?' For example, Cinnabon. One of the things is the product is always baked fresh. If you were to move from that -- that is part of the essence of that brand.

How do you find the right operator abroad?

Shattuck: There are a lot of avenues. One that often gets overlooked is the U.S. Commercial Services. We worked with them a lot to introduce us to possible candidates. Initially, that's a great place to start as you build your brands. As you create a network, a lot of it will come from referrals and current partners.

Can you think of a brand whose international expansion didn't work?

Shattuck: If you look back historically at Carvel, at one point it was in several markets overseas -- South Africa, China -- but they never really had the infrastructure to support it. They never committed to it.

-- Written by Laurie Kulikowski in New York.

To follow Laurie Kulikowski on Twitter, go to:!/LKulikowski

To submit a news tip, send an email to:


Follow TheStreet on Twitter and become a fan on Facebook.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs