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When going international, communication is key

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When going international, communication is key

How to avoid linguistic and cultural barriers when developing international franchise relationships

An English friend once told me a story about a summer during his college years when he traveled to North Carolina and applied to work as a waiter for a restaurant that was part of a wellknown quick service chain.

After landing the job, he was told that he should show up to work the next day wearing “tan pants and suspenders.” This request flustered my six foot three, twohundred- pound, friend. In the U.K. “pants” mean woman’s panties and “suspenders” are garter belts.

After some embarrassing back and forth, it became clear that what they were actually asking him to wear was tan “trousers” and “braces.” Luckily for my friend (and the restaurant’s patrons) the misunderstanding was resolved before he showed up to work the next day.

What does this story have to do with global franchising? Well, it dramatically illustrates how language barriers, even between native English speakers from different cultures, can result in problematic misunderstandings. Obviously, the nuances of communication become even more challenging when the parties to a business relationship fail to share a common language.

Whenever possible, do business in your native language

Luckily for most U.S.-based franchisors looking to expand internationally, it is not difficult to find business partners in other countries that are willing to conduct transactions in English. English is the lingua franca of international business and in many countries that offer attractive opportunities for franchisors English is either the primary language spoken or is the language that many educated persons in that country become fluent in and adopt as a second language.

International franchising is complicated. Franchisors cutting their teeth internationally may be able to simplify their initial ventures, and increase their chances of success, by starting out in foreign territories where business partners (and potential customers) are fluent in English.

Even when franchising involves expanding into non-English speaking territories, transactions with master franchisees or international franchisees potentially can be simplified for the U.S.-based franchisor by ensuring that the actual transaction documents between the parties are drafted and executed in English or, alternatively, the documents provide that the English language version of the transaction documents is the operative version that will prevail in the event of disagreement between the parties concerning meaning.

Don’t scrimp on translation services

Of course, sometimes problems are not so easily solved. Some international business partners won’t be fluent in English and attractive business opportunities may present themselves in territories where English is not broadly spoken.

In some countries, commercial contracts such as franchise agreements and master franchise agreements are required to be drafted and executed in the vernacular and the franchisor may find itself bound by the terms of a contract that it cannot read. In those instances, it is paramount to employ the services of a professional translation service.

I remember a Steve Martin comedy routine from my youth where the comedian, after returning from a trip to Paris, sardonically says, “Let me give you a warning. It’s like those French have a different word for everything.” Precisely.

Translating words and concepts from one language to another without the loss of nuance truly is an art.

Consequently, translation of commercial documents is not a job for your brother-in-law who just happened to take three years of Spanish in high school. It is a job for a professional. Ideally, it is a job for someone who is truly fluent in both languages and has experience translating complicated commercial concepts.

Such persons are frequently difficult to find and are often expensive to employ. However, this is an instance where an ounce of prevention is worth a pound of cure. Better to spend money up front to make sure the contracts between the parties accurately reflect the agreement, and that both parties understand the agreement, than to have to later engage in costly dispute resolution after discrepancies in understanding suddenly become apparent.

Make sure your trademarks, product names, and tag phrases are culturally appropriate

Employing top notch translation services applies not only to document preparation, but also to translating trademarks, product names and tag phrases associated with a franchisor’s brand. Due to the movie Pulp Fiction, we all know that in France the Quarter Pounder was renamed “Le Royale”.

But how many people know that the Big Mac was supposed to be launched as the “Gros Mec”, which in French actually means “Big Pimp”? Similarly, how many people know that the KFC phrase “finger lickin’ good” was mistakenly translated into Chinese as “eat your fingers off”?

It’s hard enough to make a name and message resonate with consumers in one’s native language. Translating that name and message into a foreign language is even more difficult and should be approached with even more diligence and attention.

This is particularly so when attempts are made to transliterate the brand name into words that sounds similar in a foreign alphabet or writing system, as is sometimes done when translating a brand name from English to Chinese. An example of a company that has done this well is Coca-Cola. In China, Coca-Cola is called Kekoukele, which means “tasty fun”. Not only does the Chinese name sound like the original brand name, it also captures the brand spirit that Coca- Cola tries to personify.

Hire bi-lingual staff to help guide foreign operations

The contracts are signed. The trademarks are fully vetted for use in the foreign territory. Now is when the work truly begins.

Franchising is a people business. People need to clearly communicate with one another to avoid misunderstandings. If the franchisor has difficulty communicating its brand strategy and plans for business growth to international stakeholders, those stakeholders are unlikely to be able to appreciate the vision or implement the tactics needed to achieve those goals. Employing trusted bi-lingual staff to support the ongoing relationship between the franchisor and its master franchisee or direct franchisees in foreign territories is critical for ensuring that language and cultural barriers do not interfere with the parties’ relationship.

The author

Jim Goniea is the general counsel of Self Esteem Brands, LLC whose franchised brands include Anytime Fitness, Waxing the City, Basecamp Fitness and The Bar Method

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