Going global? Ken Phipps of Gold’s Gym draws on his brand’s experience to offer this advice
According to a recent Goldman Sachs report, As Good As It Gets, global markets are stronger than ever. “For the first time since 2010, the world economy is outperforming most predictions,” the report said. And it forecasts global growth of four percent in 2018. That means it’s a good year for business. And, consequently, that can translate into a strong year for global franchise brands to expand as well.
A word of caution, however, to those franchisors who want to jump in quickly. In a positive economy, there can be an energy to act fast, seize interest, extend a brand, capture market share and win customers. However, quick growth can be different from smart growth. And franchisors must embrace a few things to effectively do both. Organizations need to educate before they duplicate. And here are five tips to keep top of mind when growing on a global scale.
1. Be true to the systems
It’s one of the most popular mantra in franchising: “Be in business for yourself, but not by yourself.” And in today’s tightly-connected global economy, that is the reality on a worldwide scale for some of the most successful franchise brands on the planet. Investors are attracted to a solid franchise system, whether on a domestic level from one market to the next, or on a worldwide stage from country to country. It’s that proven track record that catapults a brand from infancy to maturity and beyond. The franchise system is at the heart of a successful network, and that’s of exponential importance when replicating it on an ever-growing scale.
2. Let the brand reign supreme
Jeff Bezos has famously said, “Your brand is what other people say about you when you’re not in the room.” That’s powerful stuff. Whether it’s the sign on the door, the logo on the website, the name on the uniform, the decal on the van or so much more, a franchise brand is sacred. And it should never be treated with second-class status. Yes, a brand name and logo might need special treatments for taglines and translations into foreign languages. But its feel, the culture it conveys, the approved colors and the overall brand standards should always remain the same.
Likewise, if a logo is updated and redesigned to evolve with the company into a new era, it should be adopted across the entire franchise system in a uniform and concise manner. This is the one of the most important areas where an entire franchise network can be made more powerful and influential in its similarities and likeness. Manage this execution carefully to help support and ensure that brand’s reputation across the board.
3. Empower the experienced master license
When expanding a franchise to a new region, country, culture and more, the right master license agreement is key. Choosing an experienced business operator means also respecting that he knows the culture and a pathway to success in his own backyard better than the franchisor at corporate headquarters in the country where the franchise was founded. With that comes support and collaboration as well as some latitude for how the franchise is interpreted and activated in this new region for expansion. Take the recent examples of two of the largest Gold’s Gym locations in company history that opened in 2017.
With state-of-the-art facilities in Amman, Jordan, and Alexandria, Egypt, these two gyms exceed 150,000 square feet, triple the size of many new locations in other countries. Yet, these investors have debuted skilfully in markets that they, themselves, know best. They have attracted the right members to these locations with the very best amenities that support the success of the brand as well as further growth in these countries. While the scale of these locations sets a new precedent, the principles of the business remain steadfastly the same.
4. Share best practices
All of these tips point to areas where a franchise brand can be the same, yet different, in expanding a network across borders and around the world. Meanwhile, best practices are a wealth of knowledge and experience that can be uniformly cherished, regardless of locale. Where one franchisee has had monumental success, another might gain invaluable insight. And these best practices should find their way into regular and ongoing conversations, and at franchise conventions at the country level and at international meetings. The bigger a franchise network grows, the easier it is to identify trends and embrace a braintrust from which to borrow.
For example, when one longtime Gold’s Gym operator invested in a multi-million-dollar renovation that translated into doubling its number of gym members, that business turnaround became a case study to be shared across the system. And with a franchise brand that is more than 50 years old, there is an audience eagerly interested in hearing from a peer about this very topic alongside whatever redesign enhancements corporate headquarters might be championing.
5. Multiply the milestones
Lastly, franchisors love to celebrate anniversaries, business benchmarks, company records and more. That is true for the headquarters or home country where a franchise first originated. But the party should never end there. These practices should be replicated for each country and the successful track record that can be locally appreciated. When Gold’s Gym turned 50 a few years back, it was reason to celebrate at the annual convention in the U.S.
Meanwhile, Gold’s Gym in Egypt recently celebrated its 20th anniversary with equal fanfare for its convention there. The lesson here is to give each country the recognition it deserves in multiplying the reach and success of the brand. It can honor an individual effort while also collectively making a worldwide brand more inclusive.
ABOUT THE AUTHOR
Ken Phipps is Director of Global Franchise Development for Gold’s Gym Franchising LLC. He can be reached at ken.phipps@goldsgym.com or +1-214-296-5026.
