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(Continued from page 58)
“We have hundreds of strategic relationships around
the world with publications, associations, franchise portals,
and event organizers,” continues Portesy, “but none is more
important than our relationship with the U.S. Department
of Commerce’s International Buyer Program. That’s an
honor granted every year to a small number of huge trade
shows in the USA. The IFE doesn’t qualify because of its
size, but because franchising contributes to the economic
development of countries worldwide.”
The Commerce Department markets the IFE to
individuals, groups and organizations around the world.
“They seek out prospects who want to buy or start a
franchise,” continues Portesy, who was IFE’s first show
manager in 1992. “The prospects arrive in delegations,
some as large as 200 people, some as small as three people,
and we know they are well qualified and looking for a variety
of opportunities.”
Noting the significance of these groups, IFE entertains
them on a World Yacht Cruise while in New York City, and
gives exhibitors the opportunity to network privately with
this group.
COST-EFFECTIVE INTERNATIONAL FRANCHISE
SALES
For IFE exhibitors, the expo can dramatically reduce
the time and cost of selling a franchise domestically and
internationally. As Margiano pointed out, “Being able to
speak to people from across the world for a few days at the
IFE is a lot less costly than visiting even one country to find
a master (licensee).”
“The IFE targets the United States, which is still the
home of franchising,” says Tony Foley, international director
for United Franchise Group, which includes Signarama,
EmbroidMe and four other franchise opportunities. UFG
exhibits at all IFA-sponsored expos. “At any of these shows,
we will sell 10 domestic franchises, and two to five master
licenses internationally.”
Noting that he makes up to 20 international trips annually,
Foley said that without the IFE he would need to almost
double his travel schedule to meet his sales goals. “There’s
a limit to how much money a company can invest to get
in front of international prospects, so that’s another reason
why the IFE is valuable to exhibitors.”
“CAN YOU FRANCHISE IN UGANDA?”
In addition to cost savings, the IFE produces master
franchise opportunities that otherwise would not occur.
“Tunisia, Iraq, Uganda, Namibia – these markets are not
on my Top 10 list for franchise expansion,” explains Foley,
a veteran of international development. “But we have
opportunities in all of these markets, and many others,
because the IFE brought them to us. That’s a tremendous
benefit, and it’s always a pleasant surprise to see where
people are coming from and where they want to develop
our franchise businesses. Some come from small and out of
the way territories and they’re often afraid that we won’t be
interested. But we almost always are!”
Margiano confirmed that for budget reasons he would
not have traveled to many of the countries where he’s sold
master licenses as a result of the IFE. “It’s a lot easier to go to
a foreign country when you are closing a deal than when you
are looking for a potential partner,” he said.
Even franchise suppliers who exhibit at the IFE have
discovered the value of the expo’s international draw. Larry
Schwartz is principal and senior consultant for RBZ-Armanino,
a franchise services group that met the Japan External
Trade Organization at the 2014 IFE. JETRO is an extension
of the Japanese government with offices in New York and
Los Angeles. The group helps facilitate Japanese franchise
development in the United States, and since mid-2014 has
relied on RBZ-Armanino for consultation and development
of franchise system infrastructures that comply with U.S. law.
JETRO introduced RBZ-Armanino to a half dozen Japanese
companies that launched their development in the U.S.
market while exhibiting at the 2015 IFE.
IT’S A PLACE TO MEET FACE-TO-FACE
Exhibitors point out the importance of face-to-face
communications with franchise prospects. “The IFE is great for
networking and building relationships,” said Jerry Crawford,
president and CEO of Jani-King International, which always
presents a sprawling booth at the IFE. “Investors from around
the world come to us because they recognize the success of
American franchise organizations and they want to join us.”
Kelli Schindelegger, senior manager for global
development for Brinker International, noted how the IFE
helps to cultivate new relationships as well as drive top-ofmind
brand awareness. Margiano said he would not have
been able to attract the behemoth Duskin to even consider
his tiny business without a personal connection at the IFE.
“Exhibiting helps you bring credibility to the table because
you’re associated with the IFE and the IFA,” continued
Margiano. “I know that times have changed since that first
IFE, but not so much for international prospects. They want to
meet you face-to-face and develop a relationship, and that’s
in the best interests of both parties.
International prospects are not always looking for the big
brands. Many of them want something that’s new so they can
be the first to develop in their part of the world, but they also
want to know who you are. They want to spend time with you,
and the expo presents those opportunities.”
Foley agreed. “You can’t rely on the Internet, email, and
Skype, even though they are great tools. But they don’t
replace face-to-face meetings and that’s what makes the IFE,
and all of the expos, all the more valuable.”
For prospects such as the four brothers from Pakistan,
and the engineer from Ecuador, the IFE is the difference
between thinking about buying a master license and actually
signing on the dotted line. The expo is a prime opportunity
for consummating international sales. “Some people say they
don’t exhibit at the IFE because of the time and the money,”
scoffed Foley. “But how could you not be there?”
Dr. John P. Hayes is a freelance writer who
teaches marketing, franchising and
communications at Gulf University for Science &
Technology in Kuwait.
60 FRANCHISING WORLD NOVEMBER 2015