Southeast Asia Continues to Be an Attractive Destination for Brands Looking to Franchise Internationally

According to the latest International Franchise Attractiveness Index™, a highly respected index developed annually by researchers at the Rosenberg International Franchise Center (RIFC) which ranks 131 countries according to their attractiveness as international franchise expansion markets for US brands, there are 6 Southeast Asian countries ranked in the top 50 in two different index rankings namely Balanced Growth and Aggressive Growth which are based on risk tolerance levels.

The Rosenberg International Franchise Center (RIFC) is named for noted business entrepreneur and franchise pioneer William Rosenberg, and as their website explains RIFC explores and advances the understanding of franchising through research, education, and outreach. The center also offers franchising classes for business students at the Peter T. Paul College of Business and Economics. The courses educate students in the fundamentals of franchising, and cover various topics in franchise management.

This International Franchise Attractiveness Index™ is generated through a quantitative model that is based on peer-reviewed research and a survey of franchise executives. More information on the International Franchise Attractiveness Index™ and the methodology used by RIFC to develop the index can be found at:

https://www.unh.edu/rosenbergcenter/international-franchise-attractiveness-index%E2%84%A2

For the 6 Southeast Asian countries listed in both the Balanced Growth index and Aggressive Growth index Malaysia ranks highest with a ranking of 17th and 9th respectively. As for other Southeast Asian countries Myanmar was not included in the index and Cambodia ranked as 116th in the Balanced Growth index and 82nd in the Aggressive Growth index.

Not surprisingly several countries in East Asia also rated in the top 50 of both the Balanced Growth and Aggressive Growth indexes including China, Hong Kong, Taiwan, South Korea & Japan.

World Franchise Associates (WFA) represents more than 200 franchise brands from around the world and across the entire spectrum of the franchise industry including F&B, Hospitality, Retail, B2B and B2C services. Southeast Asia is a region where WFA has been very active over the last 5 years. We have consistently promoted the Southeast Asian region and the broader Asian region to existing clients and we will continue to promote the region to existing and new clients in the foreseeable future.

We find that a majority of the brands that WFA represents are more likely to favor the Aggressive Growth Ranking from the International Franchise Attractiveness Index™ although this does certainly vary by brand, nature of business and country of origin.

Troy Franklin
World Franchise Associates