Borders vanishing as franchising's pace quickens: as the phenomenon of franchising becomes truly global, members of the International Franchise Association continue to explore the markets and the opportunities that those markets present for the expansion of franchised businesses around the world.

Nearly two-thirds of IFA's more than 900 franchise-member companies have some operations outside the United States and that number continues to grow at a rate that is nearly as exponential as the disappearance of barriers such as language, currency and culture which are overcome with the virtually universal appeal of franchising: the creation of wealth, opportunity and economic advancement.

International franchising has traditionally held great appeal for established and mature franchises that reached market penetration or saturation in the United States and turned to markets abroad in order to maintain the growth and development of their systems. Increasingly, however, international expansion is being embraced by other franchise systems whose products and services have global appeal and can be readily adapted for operation in markets outside the United States.

Some of the interest in franchising is also driven by foreign investors who increasingly view franchising as a means for importing the technology and know-how to successfully operate within their countries.

The International Franchise Association's role as a primary resource in international development has expanded equally. Today, the association not only serves its growing global membership through legislative, educational, communications and peer networking capabilities, but its reputation as the primary point of contact for all things franchising continues to rise.

Here, Franchising World magazine offers a brief update of recent and future activities on the international scene:

World Franchise Council represented in China

Today, the International Franchise Association serves as the General Secretariat for the World Franchise Council. IFA Vice Pres. of Emerging Markets and Global Development Marcel Portmann shared the franchising community's vision for the future in Beijing earlier this summer during a meeting that preceded the opening of the China Chainstore and Franchise Conference & Exhibition. Representatives from 12 other franchise associations from around the world also attended the gathering.

Portmann's address focused on the beneficial effects that franchising has on small and medium enterprises (SMEs), in particular. "Franchising stimulates growth and development of these enterprises, as well as spawns entry-level jobs," he noted. "Franchised small and medium enterprises are able to compete with large, integrated chains through economies of scale."

The business-format of franchising provides consistent and reliable sources of goods and services, in many cases not available in some countries, Portmann added. Franchise networks. he said, provide training for local staff, technology and new standards for customer service.

Middle East, North Africa Exhibition Reviews Economic Data

IFA Executive Vice Pres. and COO Matthew Shay represented the association in June at the Middle East and North Africa International Franchise Exhibition 2004 Franchise Trade Show and Conference in Cairo, sponsored by the Egyptian Franchise Development Association. Among the highlights of the event was the prominent recognition of the economic power of franchising as noted by many of the program participants.

The Prime Minister of Egypt, Dr. Atef Ebid, and the Minister of Internal Trade, Dr. Hassan Khedr, during their respective addresses, shared the details of critical economic data taken from the IFA Educational Foundation's recently released study, "The Economic Impact of Franchised Businesses", citing the 18 million U.S. jobs and the $1.53 trillion economic output generated by franchising as examples of the impact the business format can have on the economy. The study was also featured in the show program and other conference materials.

"It was truly impressive to see the great progress that the Egyptian Franchise Development Association has made in just three short years to create a compelling destination [or those interested in franchising in Egypt and the region," said Shay. "There is clearly a strong commitment from the government of Egypt, its economic development institutions, as well as banks, lenders and the financial community, to support the growth and development of franchising in Egypt as a way to create jobs and opportunities."

Australia's National Conference to Convene in August

International Franchise Association Chairman Sidney Feltenstein will address the Franchise Council of Australia's National Conference in Brisbane August 30. The conference includes the substance of years of accumulated wisdom delivered by key pioneers, deep exploration of contemporary issues, revelation of forthcoming changes and future glimpses by international visionaries.

The event, according to the FCA, "aims to unlock the barriers to new worlds of opportunity in the sector that is and will be."

Feltenstein will focus his remarks on the importance of franchising in a global market and offer key details of the IFA Educational Foundation's new study, "The Economic Impact of Franchised Businesses," which was conducted by PricewaterhouseCoopers.

South American Trade Mission Meets 150-plus

As part of its international activities, IFA organized and coordinated a trade mission to Argentina, Brazil and Chile from June 9-19 in Buenos Aires, Sao Paulo and Santiago. The trade mission was attended by eight members of the association who had the opportunity to meet with more than 150 pre-screened candidates who expressed an interest in U.S. franchises. The program also included participation in the franchise exhibitions of Argentina and Brazil via an IFA exhibit booth. The next trade mission will be to Ireland October 4-5, with a stopover in London for the International Symposium October 6-7.

British Franchise Association and IFA Team Up for International Symposium

The International Franchise Association will once again team up with the British Franchise Association to host an International Symposium on Oct. 6-7 in London. Focusing on key topics in international franchise expansion, this year's symposium is expected to attract more than 100 franchise executives from all over the world.

Topics for discussion during concurrent sessions include the lure of international franchising, building a program, maximizing international target market potentials, structuring marketing results, training for international franchisees, market entry into the U.S. as well as the European Union, the role of technology in marketing communications and interconnectivity, funding alternatives for fast franchise growth, mining leads to extract international franchise buyers and the right structure for successful international franchisees.

The program will also feature interactive country and business solution roundtables, informative general sessions, plus a panel of experts. Ground transportation to the National Franchise Exhibition in Birmingham, Oct. 8-9 will be provided.

Attendees will earn 300 elective Certified Franchise Executive credits. Limited sponsorship opportunities are available at $2,500 each, which include display of company logos in the program brochure and on signs at the event. A promotional item may also be included in the handout materials.

For more information about the program or sponsorships, contact IFA Dir. of Meetings Anne Poodiack at 202-662-0773 or [e-mail].

Web Site's International Focus to Expand

The International Franchise Association will engage in a new project that utilizes information technology to promote international franchising, export lead generation, the posting of franchise opportunities, and a matchmaker service through the establishment of an international section on its Web site. The enhanced section would be constructed to serve as an international clearinghouse for overseas inquiries about franchising opportunities and would include a listing of opportunities and "Search for Partners" posted by the U.S. franchising community.

A listing of those IFA members with international interests will be posted, including hotlinks to member company Web sites. A resources section will provide information on upcoming international conferences, seminar opportunities, and other franchise events, as well as information on national franchise legislation.

IFA: International Franchising's Primary Resource

There is no question that the international marketplace can be daunting, but whatever challenges franchise systems face, and whatever opportunities are envisioned, at the legal, regulatory, financial and educational levels, the International Franchise Association stands ready to serve today's rapidly-expanding franchise companies.

For information about IFA's international development activities, contact IFA Vice Pres., Emerging Markets and Global Development Marcel Portmann at 202-662-0760.