Forbes recently published a list of the top 10 counties in which to do business, and with the recent publication on our sister site of the Top 100 Global Franchises, I thought it would be a good time to explore the world of US franchises in the UK.
Many US franchises use the UK as their gateway to Europe, and the reasons for this are fairly obvious. Both countries speak English as their mother tongue, albeit with some differences – tomato/tomato anyone?! The UK also has one of the largest and most advanced populations in Europe, at 60.9 million the UK population is only a fraction of the impressive 303.8 million people accounted for by the US, yet in certain industries such as media and retail, the UK can sometimes be seen as an add on economy to the US. Think about the UK media and the large role US brands currently play, as well as music, clothing, food and increasingly – cars. The introduction of a US franchise brand into the UK is not always without hiccups as many cultural and economic differences remain, however if the franchisor has considered these differences and implemented any necessary changes to make the concept more suited to the UK market, then there is no reason why their franchise opportunity should not be considered further.
The Top 100 Global Franchises detailed how the US accounts for the largest number of international franchise brands which includes household names such as McDonald’s, Domino’s Pizza, UPS Store, 7 Eleven, Pizza Hut, Subway and Ben and Jerry’s to name but a few. The UK accounts for only one – Intercontinental Hotels. The UK franchise industry has been infiltrated by a large number of US brands, yet it still has to make its mark on the international franchising field.
The UK ranked no. 6 in Forbes’ list of top countries for business, while Denmark took the top spot for the second year in a row and the US followed in second place. The list was compiled as a guide for entrepreneurs looking to expand their business overseas. Each country is ranked based not just on GDP or low unemployment, but on other influencing factors such as personal freedom, stock market performance, intellectual property rights and corporate transparency. As one of the four English speaking countries in the top 10, and with the biggest population after the US, it is easy to see why the US remains a huge target market for US franchises going global.
The infographic below details the various factors considered when Forbes ranked each country. Also, for those of you looking to find out more about US franchises take the time to explore our directory of US franchise opportunities available in the UK.