Does Not Franchising Only Work For Famous Brands?

Most definitely not. Of more than 2500 US franchises operating domestically, a mere ten or so are known internationally. Be that as it may, the most popular brands usually represent fast turnover consumer goods. But franchising as a way of distributing goods and services works in areas where there simply can be no global superstars: think copier toners recharging, high school math lessons, human resources, home renovations etc. Mind you, famous brand franchising is extremely expensive. There is a simple geometric progression between the popularity of a brand and its price when offered as franchise.

One way for franchises to enter new markets and territories is through Master franchise rights. They can be sold to an entrepreneur who gets the development rights for a given country or region and then passes on franchise rights to individual business people for a fee. You understand that there is no way such brands can achieve widespread (or in fact, any kind of) fame on local markets beforehand as they were never in operation there and were not advertised in any way.