May 13, 2022 - Blog, Franchise Articles by |

One of the biggest challenges for any business is offering a popular product or service while also standing out from the crowd. To succeed, businesses need to strike just the right balance between familiarity and novelty—and this is one of the reasons why franchising is so popular. Strong franchise systems offer a recognizable brand coupled with unique (often proprietary) and in-demand products and services.

But, what if you buy into a foreign franchise system that is seeking to expand in the U.S. from overseas?

As franchise lawyer Jeffrey M. Goldstein explains, there isn’t necessarily anything better or worse about buying into a foreign franchise system. As with all franchise opportunities, the key is to conduct thorough due diligence, evaluate your individual chances of success and make an informed buying decision. While foreign brands might not be instantly recognizable for the majority of the U.S. population, their unique concepts and the lack of market saturation (combined with a strong system and leadership team) could have strong profit potential.

Cooking Classes and Dart Lounges: Franchise Times Highlights Foreign Franchise Concepts Coming to the U.S.

The Franchise Times recently published two articles highlighting foreign franchise systems that are banking on finding success in the United States. The first is Little Kitchen Academy, which the publication describes as, “a Montessori-inspired cooking class program for children aged 3-18,” that was launched in Vancouver, Canada in 2019. The second is Oche, a “gastro pub and gaming concept open in several major European cities.”

Both franchise systems believe they have what it takes to succeed on U.S. soil. “What millennials and Gen Z are looking for is something more than just eating and drinking when they go out,” says Oche’s CEO according to the Franchise Times. According to one of Little Kitchen Academy’s founders, their concept “allows . . . children to feel freedom and confidence in exploring their internal needs . . . where they refine their senses and they learn how to speak to their needs and their inner urges to grow into these beautiful humans.”

But, for prospective franchisees, is it worth the investment? Without an instantly recognizable brand, does it make financial sense to pay an initial franchise fee and ongoing royalties? As with most questions regarding franchise opportunities, the answer is, “It depends.”

Buying into a foreign franchise system also presents some unique potential risks from a legal perspective. Will the franchisor have an adequate understanding of franchisees’ rights in the U.S.? If franchisees need to take legal action, will they be able to pursue claims against a U.S. entity, or will they need to go abroad? Since the system is untested in the U.S. market, will franchisees have adequate options to exit the system if the franchisor is not able to build a strong domestic presence? These are all important questions that prospective franchisees will need to consider as well.

Discuss Your Franchise Opportunity with National Franchise Lawyer Jeffrey M. Goldstein

If you are thinking about buying into a foreign franchise system and would like to know more about the legal risks involved, we invite you to contact us for a free initial consultation. Call 202-293-3947 or send us a message online to request an appointment with national franchise lawyer Jeffrey M. Goldstein today.  

This article is provided for informational purposes. Goldstein Law Firm does not recommend or endorse any individual franchise opportunities.

Lawyer USA

Complex Commercial Litigation Law Firm of the Year – USA

Lawyer USA

Complex Commercial Distribution Litigation Representative

Lawyer USA

Antitrust & Franchise Law Firm of the Year – Washington DC

Lawyer USA

Best Franchise Lawyer of the Year – New York

Lawyer USA

Best for Franchise Disputes – USA

Lawyer USA

Complex Commercial Litigation Law (Franchisees and Dealers) 2021 – USA

Lawyer USA

Antitrust and Franchise Law Firm of the Year in DC

Lawyer USA

Leading Professionals in Law

Lawyer USA

Franchise Law
in the District of Columbia

Lawyer USA

Franchise Law Firm
of the Year – USA

Lawyer International

Lawyer International
Legal 100
2018

Lawyer International

Lawyer International
Legal 100
2019

ACQ5 LAW AWARDS 2019

US (New York)
Franchise Lawyer
of the Year
ACQ5 GLOBAL AWARDS 2019, JEFF GOLDSTEIN, GOLDSTEIN LAW FIRM, PLLC

ACQ5 LAW AWARDS 2019

US (New York)
Franchise Law Firm
of the Year
ACQ5 GLOBAL AWARDS 2019, GOLDSTEIN LAW FIRM, PLLC

Lawyers of Distinction logo

2020 Power Lawyers

Esteemed Lawyers of America Logo

Esteemed Law Firm Complex Litigation

Global Law Experts Logo

Recommended Firm in Franchise Litigation

Who's Who Attorney Logo

Top Attorney USA – Litigation

Avvo Franchise Lawyer Symbol

Superior Attorney in Franchising

Avvo Franchise Lawyer Symbol

Superior Attorney in Antitrust

Finance Monthly Global Award Winner Logo

Franchise Law Firm of the Year

Lead Counsel logo

Chosen Law Firm for Commercial Litigation

BBB of Washington DC

A+ Rated

Washington DC Chamber of Commerce

Verified Member

Lawyers of Distinction logo

Franchise Law Firm of the Year

ISSUU

Best Law Firm for Franchise Disputes in 2017

Law Awards Finanace Monthly

Franchise Law Firm of the Year - 2017

Top Franchise Litigator for Franchisees and Dealers

Top Franchise Litigator for Franchisees and Dealers

2017 Finance Monthly Award

2017 Finance Monthly Award

ACQ5 LAW AWARDS 2018

Franchise Law Firm
of the Year
ACQ5 LAW AWARDS 2018

ACQ5 LAW AWARDS 2019

Franchise Law Firm
of the Year
ACQ5 LAW AWARDS 2019

Franchise Law Firm of the Year

Franchise Law Firm of the Year

Franchise Law Firm of the Year

Franchise Law Firm of the Year
Global Awards 2017

Global Law Experts

Franchise Law Firm
of the Year
in New York – 2019

Finance Monthly Law Awards - 2018

Finance Monthly Law Awards - 2018

Franchise Law Firm of the Year

Franchise Law Firm
of the Year
Global Awards 2018

Contact Us

Goldstein Law Firm, PLLC

1629 K St. NW, Suite 300,
Washington, DC 20006

Phone: 202-293-3947
Fax: 202-315-2514

Free Consultation

Downtown Chicago Office

30 South Wacker Drive 22nd Floor #3341,
Chicago, IL 60606

Phone: 312-382-8327

Free Consultation

Free Consultation