According to this year’s NatWest / British Franchise Association franchise survey, 27 per cent of UK franchise systems have international operations, while two-fifths of those planning to expand internationally intend to do so over the next year.

The key to successful overseas expansion is detailed planning and thorough market research.

Dan Archer, head of marketing at the bfa, said: “Franchisor businesses considering overseas expansion should consider factors such as the differences in the foreign market and the potential need to pilot the concept in a new country.

“Franchisors will also need to consider whether it is more effective and practical to support franchisees direct from one country to another, or whether to appoint a master licensor to act as the franchisor in the new country,” he said.

Smart Cartridge, an associate member of the bfa, has undergone significant international expansion over the past year.

The Edinburgh-based group, whose core business is ink cartridge refills and laser cartridge remanufacture, has 60 franchisee-owned stores worldwide, including outlets in Ireland, Portugal, Spain and the Dominican Republic.

This has been achieved through a combination of area development agreements and master licenses.

International development director Suzie McCafferty said: “Finding the right people in your destination market is paramount. It can take up to 12 months just to negotiate a master licence, before you start the due diligence checks and the funding process.

“But if you get that right, you have a solid platform on which to start building and developing the brand in a new market,” she added.

International ventures can spell opportunity for prospective franchisees, but they, too, have a huge amount of preparation to do.

In addition to the due diligence process of assessing the suitability of the business, potential return on investment, franchisor, and the lifestyle requirements, they need to think about the challenge of moving to another country and all that comes with that.

Things like language barriers, cultural change, and the legal differences and disparities in business culture, must all be taken into account. For those with a family, the decision to move and start a business in a different country could have a major impact on everyone so it is vital that everyone concerned is comfortable with the decision.

Another point easily overlooked is the need to understand franchising and contract law in the overseas territory, together with the legal system governing the franchise agreement.

Dan Archer added: “You need to know whether the contract is governed by local law or the law appropriate to the originator business' country? Taking sound legal advice is imperative.”

Regular workshops for prospective franchisors run by the bfa are an ideal starting point for businesses considering franchising overseas.

Alternatively, anyone looking to start their own business through franchising abroad should visit the bfa website at www.thebfa.org for a list of franchisor members with international opportunities.