Franchise Lawyer Blog

Global Franchising

In early November, Beautiful Brands International (BBI) and Paul Russo, owner of NYPD Pizzeria, announced a joint venture to franchise NYPD globally. BBI will bring its organizational system while Paul Russo will bring his famous, award-winning pizza to the table in an effort to create a global company.

According to Russo, “NYPD is the perfect formula for franchise success. Not only have all of our proprietary ingredients been fully developed with nationwide distribution in place, we have a proven track record with 28 best pizza awards nationwide to show for it.”

Partnering with BBI certainly won’t hurt. BBI has launched numerous franchised brands into the global market, including Roxberry Juice Co., Hard Knox Pizzeria and FreshBerry Yogurt Café.

In today’s global market, franchising internationally is becoming more and more commonplace. It is a good business solution when a franchise has been successful in the U.S. and would like to expand, or when the domestic market is saturated.

While international markets, especially those in developing, emerging countries, are often untapped, franchising internationally has its challenges. Franchisors must review a number of factors that can influence their growth prospects, including:

  • The demand for the franchisor’s products or services
  • Cost of entry into the market
  • Vendor options
  • Partnership options
  • The country’s GDP and economic health
  • Local franchise laws
  • Local business operation laws
  • How the differences in the law will impact your business locally and globally

Whether your business has partnered with a global expansion company or you are considering expanding internationally without such a partnership, a franchise attorney can help you understand the legal issues involved with global franchising as well as any contractual or litigation issues that arise from the expansion.

Source: PMQ News Room, “NYPD pizza signs with BBI to franchise globally,” Nov. 1, 2012

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