Brand Franchising Overseas

Franchising is becoming an important model for Chinese chain businesses going global. From food service to retail, and from single pilot stores to systematic roll-outs, more and more brands are expanding into Central Asia, Russia and the Middle East. In Central Asia, Kazakhstan's franchise market is worth around USD 3 billion, with foreign brands holding over 70%. In Russia, the fast-food franchise market reached USD 20.14 billion in 2025. In the Middle East, a well-known Chinese hotpot brand entered Dubai through franchising, with local and international customers accounting for 60% and 40% respectively. Yet localisation capability and compliance remain the decisive factors for success.

Common Challenges When Going Global

• Insufficient intellectual property protection: the risk of trademark squatting and counterfeiting is high, and franchise systems lack a legal foundation for protection.
• Difficult franchisee selection: the strength, creditworthiness and operating ability of potential local franchisees are hard to verify, and choosing the wrong franchisee damages the brand.
• Hard to transfer operating standards: differences in language, culture and management habits make it difficult to replicate domestic operating standards as they are, requiring substantial localisation.
• Lack of local operating support: franchisees need ongoing training, marketing and supply chain support, while building an overseas team is costly for the brand owner.

Our Solutions

• IP strategy and protection: registration of trademarks, copyrights and other rights in target countries to build a protective barrier against squatting and counterfeiting.
• Partner screening and due diligence: background, credit and operating-capability checks on potential franchisees and regional agents to reduce the risk of choosing the wrong partner.
• Business model and franchise system design: franchise models, fee structures and territorial licensing schemes designed around the characteristics of the target market.
• Local operations management: support for brand owners with local training, marketing, supply chain management and customer service to keep the franchise system running smoothly.