Perhaps not so surprisingly, many U.S. companies are going overseas to license or franchise their brands. Franchisors have prospered in the United States during the pandemic if they could exploit omni-channel distribution. Pick-up, curbside delivery, third-party delivery and drive through works for many restaurants. Education companies can deliver through distance learning. But some companies simply cannot perform through these mechanisms. Moreover, even the restaurant companies are challenged by brick-and-mortar development. Supply chains for both food and construction are strained or delayed. Franchise employees and contractor employees are in short supply. It is just more difficult to grow in a United States that is constrained by COVID right now.
The Benefit of Going International
Historically many brands have prospered through international operation. Many travelers want to experience U.S. concepts. Many foreign mall owners, hotels and casino operators want U.S. concept to draw business, United States and foreign as well. Unlike the United States, the foreign landlords will pay a premium for U.S. brands. It not only provides a U.S. draw but also enhances the reputation of the overseas host or landlord. Many countries make it easy to want to do business with their citizens.
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