With almost 60 restaurants UK-wide, a presence in Canada and plans to move into Pakistan, North and South America, Europe and the Middle East, the ambitious expansion plans of restaurant franchise Heavenly Desserts are continuing to develop at pace. Managing director Yousif Aslam shares his advice on creating an ever-growing international franchise.
My business partner Mohammed Imran and I launched Heavenly Desserts with a vision to create a new approach to how desserts were enjoyed worldwide, creating a premium range and an exceptional overall dining experience that brought worldwide flavours and unique ingredients to our audiences.
It is this vision that underpins our brand today. It has been 16 years since our humble beginnings in 2008, and we have seen a meteoric rise in popularity among customers who love our delicious creations, stylish venues, our values and approach.
Since embracing the world of franchising seven years ago in order to facilitate our growth, we remain passionate about how this business model helps people take charge of their own success story – with the backing of a highly experienced operational team.
As a dedicated ambassador for franchising, these are my tips for entrepreneurs looking to grow their franchise model overseas and facilitate a rewarding career long-term…
Conduct thorough market research
By the time we decided to move into international franchising, we had developed a unique market proposition, had demonstrated a profitable business model and had huge aspirations to scale up. It seemed an obvious next step.
Firstly, you must understand if your proposition will work in other territories and have a talented operational team behind you that continues to innovate at the backbone of the brand. Consider, is there a market for your business concept internationally?
Our initial step was to research other markets to see if there were similar concepts already operating. If there is, study the competitors and understand what value your concept can add to its service users or consumers in that particular space above and beyond what is already available. If there isn’t – then look to understand why. This might be because there is no demand for such a concept, or that there is a demand but due to perceived high risk, the appetite from local investors is low.
This can sometimes present itself as an early mover opportunity as long as the concept can grab an appetite with consumers.
What will be your route to market?
There are two main routes to consider in franchising – creating a master country franchise or a regional franchise. This will largely depend on the size of the territory you are looking to move into.
In a master franchising model, a singular master franchisee will be awarded master franchise rights by the franchisor – in this case, Heavenly Desserts – in exchange for a larger investment in the franchise. This grants the master franchisee the rights to appoint new franchisees in a specific country (usually to an existing network of contacts) and it’s recommended that these are people with history and experience within the target market, potentially local natives to the area to help ensure the customer values, regulations and cultures are closely met with the right understanding. It’s worth noting in a master franchise model, the profits and franchisee fees are split between them and the franchisor
In a regional franchise system, the franchisee can be responsible for anything from one to a number of units in a specialised location. A regional franchisee has the benefit of lesser costs to purchase and operate as well as more advice from the franchisor, but they may also provide a more personalised service in those core areas and for the franchisor there is usually more influence over final decision making.
Ensure legal and financial considerations are in place
It’s important to ensure you are appropriately financed to fund the early part of your international growth, which will require human resource and outsourced services that will be an upfront investment into any expansion overseas.
A financial forecast will be key to ensure you can stay on track and remain appropriately funded before you are operational and begin to collect revenue.
Looking after the paperwork from the start will also ensure a fruitful working relationship between franchisor and franchisee, including:
- Drafting clear and comprehensive franchise agreements that outline the terms, rights, and responsibilities of both parties – and apply to local laws
- Secure and protect trademarks, logos, and any proprietary information or processes critical to the business
- Clearly define the initial franchise fee, ongoing royalty payments, marketing fees and any other costs franchisees need to pay – this will need to be in line with local territory benchmarks, which can differ
- Provide prospective franchisees with detailed financial projections and break-even analyses to inform their decisions
- Always include terms for franchise termination or transfer, ensuring a process is in place for franchisees wishing to leave
The above will also inform what your growth timeline may look like for expansion and should be done alongside an experienced professional.
Your concept might need adapting
There are a few vital steps you must identify when assessing the franchising viability and desirability of your business:
- Consider what room there is for concept adaptation – for us, this even meant altering our sugar levels and portion sizes to different palettes across Canada and the US for instance, which ultimately impacted menu offering and pricing
- What language translations might be needed for any literature such as operational, training documents or marketing guides?
- Decide on the best type of venue – in the UK, we have kiosk concepts as well as neighbourhood and city restaurants, but how might this translate into other areas?
- Can the business scale effectively? Consider the supply chain, staffing, and operational needs without compromising quality
- Have well-documented systems and processes in place that can be easily taught and implemented by new franchise owners
- Consider the need for language translations on your operational and training documents or marketing guides when planning an overseas launch
What are the main benefits to franchising?
Franchising is a great way for a business to allow others to use its brand’s intellectual property, such as logos, trademarks, domain, product names and its processes, to operate independently.
However, you have to be sure that your business is ready to branch out into international waters, so it’s important toweigh up the legal and financial considerations and consider how much support will be needed and how you will dedicate that time.
The franchisor doesn’t need to commit to such significant capital investment, therefore reducing risk to enable rapid growth. They benefit from generating several revenue streams through upfront fees, ongoing royalties, sales of products and ongoing services to their franchisees.
As more franchises open, the franchisor’s business receives a boost through increased brand visibility and recognition that will increase the market presence and continue to build consumer trust.
How do you ensure marketing and brand consistency?
An essential part of setting franchisees on the road to success is to ensure your business has strong, recognisable and trusted branding, with a thorough understanding of harnessing the power of marketing. We do this through:
- Brand guidelines: Develop and enforce comprehensive brand guidelines that cover logo usage, colour schemes, interior and exterior design, and promotional materials to maintain brand identity
- Centralised marketing: Implement a marketing strategy that supports local franchise marketing efforts while ensuring overall brand consistency
- Defining our digital presence: Maintain a strong online presence with a centralised website and social media profiles, while enabling franchisees to engage locally online under the umbrella of the main brand
What do I need to support my franchisees?
It can be a daunting time for franchise owners to set out on their own, so it’s important to dedicate time to training them and having regular check-ins. Your ongoing support might be needed for anything from troubleshooting to marketing assistance.
Equip franchisees with the necessary technology and systems to manage their operations efficiently. Have a system for monitoring and reporting on franchisee performance to help identify areas for improvement and ensure compliance with brand standards.
In our own story, we’ve learned the importance of taking good advice, whether through mentoring by other franchise owners, speaking to franchise consultants and legal and accounting experts – as well as the British Franchise Association.
Reap the rewards
It’s a big step to take when you have put years of hard work into creating your own successful business – but you can reap many rewards through sharing your brand in the franchising world. My biggest advice for going into overseas? Be prepared to learn lots and make some mistakes along the way.
For more information about Heavenly Desserts, visit: https://www.heavenlydesserts.co.uk/
