Ridiculous Franchising Rules in Other Countries

Many of the United States best trading partners puttaxation revenue for those nations.
up barriers to entry as American companies try toThus, they actually do better when there are
import their goods and services into those countries.American franchises within their country. Plus, other
This is rather a shame, and it is quite short sided.businesses learn from these efficiencies, and all small
These nations put up trade barriers destroying thebusinesses do better therefore, creating more
win-win situation that free trade opens up in thewealth, cycling more money, creating more tax
global marketplace.revenues, and this all becomes a path to economic
If we buy from their nation, and they buy from ourprosperity.
nation, the money keeps going around in circlesRecently, I was looking at one of the Asian
faster and faster and everyone does better; that iscountries, which has a franchising rule for foreign
a definite win-win and that's why free trade works.corporations; A franchisor cannot sell franchises until
But free trade only works if it is free and fair, andthey have operated in the nation for 2-years and
unfortunately, in the franchising industry it hasn'tthat business has been successful. Meanwhile, they
actually been a level playing field and I'd like tomust also have a native born citizen partner to start
explain.a business in the first place. And in many nations it
Many nations have ridiculous rules when it comes totakes two years just to get a business license.
franchising in their country, especially when it comesTherefore, if a franchisor wishes to become
to foreign partners. Many Asian nations will not letfranchisor in some of these Asian countries, it takes
you franchise in their country right away. Rather,four years to get going, that's just a start.
they want you to prove that your business isMeanwhile, often their trademarks are hijacked, their
actually viable before you sell it to anyone in ourbusiness models are stolen, and it becomes a
country. They also do not want American franchiselose-lose situation, rather than a win-win situation for
systems which are superior in efficiency to knock outboth the franchisor, the United States trade deficit,
all their small businesses in that country.and the nation in question along with all the benefits
However, the reality is that franchises are owned bythat franchising system might have brought to the
local business people and only the royalties are goingcountry. It is for this reason many companies opt
to the franchisor and come back to the Unitedout, and are even rude to franchise buyers in these
States. In turn it helps the local economy with moretypes of country. This hurts international business.
efficient businesses, lower prices, better competition,Indeed, I hope you please consider this.
and more employment. It also provides more