Exploring international franchise companies to invest in the United States can be a lucrative opportunity due to the diversity and robustness of the U.S. market.
Here are some examples of international franchise companies that have published their financial performance in Item 19 of their Franchise Disclosure Document (FDD), providing a transparent and detailed view of their operations and financial results.
Cinnabon Franchise
Cinnabon, known for its cinnamon rolls, shows an average net sales yield of $720,264 at its locations inside enclosed shopping centers.
The franchise has more than 900 units operating and remains a popular choice for investors looking for an established brand with a product loved by consumers.
McAlister’s Deli Franchise
McAlister’s Deli, a fast-casual restaurant chain, reported average net sales of $1,968,124 for fiscal year 2023.
McAlister’s has been able to adapt to market demands by offering healthy options and a welcoming atmosphere that invites customers to come back.
With more than 500 locations, McAlister’s continues to expand and offer a streamlined operation that appeals to both customers and franchisees.
Moe’s Southwest Grill Franchise
Moe’s Southwest Grill, another chain in the fast-casual segment, reported average net sales of $1,225,863 for the same period.
With more than 600 locations, Moe’s offers flexible operation and has proven to be an attractive option for investors interested in the food and beverage sector.
Not only do these international franchise companies offer a clear view of their potential financial returns, but they also provide a robust support structure and an established brand that can be attractive to new franchisees. But how did they manage to establish themselves?
International Franchising – How They Expanded Their Reach
The Cinnabon, McAlister’s Deli and Moe’s Southwest Grill franchises are all native to the United States and are part of the Focus Brands portfolio of brands, which also includes well-known brands such as Auntie Anne’s, Carvel, Jamba, and Schlotzsky’s.
Focus Brands, now rebranded as GoTo Foods, is a company headquartered in Atlanta, Georgia, and is known for its franchise model and international expansion strategies.
The internationalization of these brands has been driven by Focus Brands’ franchise model, which allows for rapid and strategic growth. This includes using master franchises to enter new markets and tailor operations and products to local preferences.
Focus Brands has implemented strategies such as co-branding (dual brands) to increase the visibility and attractiveness of its franchises in different markets. This approach to growth and adaptation was key to the success of their international operations, enabling these brands to not only enter new markets, but also thrive in them.
Considerations When Investing in an International Franchise
Investing in a franchise that provides access to your FDD with a detailed Item 19 is crucial to understanding your financial potential and associated risks. This transparency helps establish a relationship of trust between the franchisor and the franchisee, and facilitates a more informed decision process for potential investors.
If you are interested in companies with international franchises to expand to the United States, remember to evaluate these documents. It is important that you consider the viability of the franchise in terms of financial performance and adaptability to the local market. Choosing the right franchise should be based on a thorough understanding of what the franchise can offer.
Consider exploring resources and working with experienced advisors like Interlink FBC. We will provide you with tailored assistance and strategic insights for the acquisition of a profitable franchise in the United States. Contact us for personalized guidance on your next investment.
