Internationalization: What are the steps to take a network to another country?

Brazilian franchising crosses borders and is consolidating as one of the world's largest brand exporters. Currently, national chains are present in more than 100 countries, with particular prominence in Portugal, the United States, and Argentina. According to the Brazilian Franchising Association (ABF), this movement accompanies the robust growth of the sector, which generated more than R$273 billion in 2024. However, expanding a franchise to another country requires meticulous and strategic planning.

According to Lucien Newton, Vice President of the Consulting vertical of Ecossistema 300 Franchising, internationalizing a network goes far beyond simply replicating a successful model. "Expanding outside of Brazil requires consideration of three essential pillars: cultural adaptation, market intelligence, and financial structuring. Without this well-defined tripod, the risk of failure significantly increases," explains Lucien.

Step-by-Step Guide to Taking a Franchise Abroad

• Market analysis and local legislation
  Before any move, understanding the regulations of the target country is essential. Franchising in Brazil is highly regulated, but not all markets have such structured legislation. Furthermore, it's necessary to assess local demand and competition to ensure there's room for the brand.
• Expansion Model Selection
  There are different formats for internationalization, such as master franchising, where the franchisor works on expansion by granting the rights to manage the brand to a third party. Joint ventures Characterized by a commercial partnership or alliance between companies; and the direct opening of company-owned units. The choice should consider the franchisor's management capacity and the investment level.
• Branding adaptation to the local market
  Each market has its own cultural and consumer peculiarities. "What works in Brazil might not be so attractive in another country. Testing the model, adjusting the product mix, and paying attention to communication are fundamental steps," highlights Newton.
• Strategic Partnership Formation
  Partnering with local businesses facilitates market entry and reduces operational risks. Companies with existing sector experience can assist with logistics, distribution, and franchise operations.
• Financial Plan and Franchisor Support
  International expansion requires detailed financial planning, considering exchange rates, taxation, and operating costs. Furthermore, providing ongoing support to franchisees is crucial to maintain brand standardization.

Opportunities for the futureBrazilian franchising continues its global ascent. Segments like food, beauty, and education are among the most promising for international expansion. For Lucien Newton, internationalization is no longer an option, but a natural path for networks seeking sustainable growth. 

The world is becoming increasingly globalized. Those who know how to position themselves and create intelligent strategies for international scaling will be ahead of the competition," concludes the expert.