In 2013, many U.S. franchisors of various sizes decided to take their businesses to the global level. The global market was once thought to be reserved for the restaurant and hospitality industries, but no more. The full spectrum of industries were represented in 2013 and the IFA (International Franchise Association) found that this trend will continue in 2014. Currently, the 200 largest U.S. based franchisors have more than one-third of their units outside of the U.S., and this number is projected to be one-half by the end of this decade.

Top 10 Global Franchises of 2013:

1. Subway

2. 7 Eleven

3. McDonald’s

4. KFC

5. Burger King

6. Pizza Hut

7. Wyndham Hotel Group

8. Hertz

9. Ace Hardware Corporation

10. InterContinental Hotels Group

There are a few obstacles to overseas expansion: country regulations, poor economies, deep recessions and political turmoil. However, there are many countries that a very franchise-friendly, and expected to grow in 2014.

Projected GDP* Growth Rates in 2014 (by Country):

• China – 7.3%

• Philippines – 6.6%

• India – 6.1%

• Vietnam – 5.5%

• Indonesia – 5.4%

• Saudi Arabia – 5.1%

• Chile – 4.9%

• Turkey – 4.6%

• Colombia – 4.3%

• Mexico – 3.9%

• South Africa – 3.3%

• New Zealand – 3.3%

• U.S.A. – 2.7%

• Australia – 2.7%

• Brazil – 2.5%

• Canada – 2.3%

• U.K. – 2.1%

• Japan – 1.5%

• Ireland – 1.1%

So whether you decide to expand locally or globally, consider working with a knowledgeable franchise consultant for the upcoming year looks bright for the franchising industry.

*Gross Domestic Product
**References: www.franchisedirect.com and www.franchising.com, William G. Edwards