Master Franchise Agreements And International Supply Chains

With the recent election of Donald Trump those of us who don’t know much about free and fair trade are learning about it from our nightly cable TV news. Trump explains that it is unfair when we allow products into US markets with no duty or tax, but then those same countries like China or Mexico put a 45% tariff on our goods. No one probably understand this better than an International Franchisor – someone who sells franchises or master franchise license agreements globally. I can remember when I was negotiation the sale of a master franchise for my company in Mexico. My franchise buyer was in Monterrey, Mexico. The family was well-connected with the government there and had many distributorships and license agreements with major US companies already – Auto Dealers, Truck Dealers, Tractor Dealers, Soda Pop, etc.

It seemed perfect, however as we got to talking about the cost of the master franchise and the requirement to operate at least one actual unit – for training purposes, etc. – I quickly learned that I would have to pay the import duties or charge those to the buyer. This immediately added costs. It became an additional burden for the master franchise because, each time he sold a franchise, the franchisee would have to get their equipment from the US, also at a 45% import duty, drastically raising the price of the franchise and hurting their chances for a quick positive ROI.

We therefore had to come up with some sort of manufacturing there in Mexico to sell into that market, but in doing so, I risked giving away all the technical plans of the equipment which made it unique to our franchise company – and that’s a lot of hard won intellectual capital, not in the sense of patents mind you, but in real terms, trial and error, development and weeding out what didn’t work in the evolutionary changes and upgrades along the way.

Interestingly enough, now 20-years later, the 2016 December issue of Global had a brilliant article; “The Fourteen Questions a Master Franchisee Needs to Ask.”

The article questioned; “Where is the product to be sold coming from?” and stated; “The franchisor will mandate that the quality standards established in its domestic country be properly maintained by the master franchisee and sub-franchisees. That requires a protocol for the franchise system in every Territory to obtain access to the same products and/or services being sold to retail customers. The franchisor may supply product to the master franchisee or sub-franchisees but, more likely, the obligation will be on you, the master franchisee, in the foreign country to access local distributors and get the distributors approved by the franchisor.”

Indeed, it was about quality, intellectual capital, and availability of supply. It turned out at the time, I wasn’t willing to adjust my master franchise agreement to accommodate such changes, it wasn’t until I was more well established some 5-years later that I took the risk and worked through the trade issues and figured out how to deal with our supply chain. Please consider all this and think on it.

Translation Industry and the Evolving Global Marketing Scenario

Have a look at some interesting figures that the recent past has doled out. An assessment from research firm Common Sense Advisory has observed that 63 percent of global brands have reached more customers lately through an increase in the number of languages on their websites.

Localization has turned up as the 4th fastest-growing industry in the United States, according to the Centre for Next Generation Localisation.

If we look at what the US Census Bureau has gathered – a minimum of 350 languages are spoken in US homes. This is just a hint of the influx of a multi-lingual impact that other regions in the world have been embracing.

How can a brand not employ a translator for English to Spanish when targeting a Spanish customer who is looking for a product in the SEO list? Wouldn’t this user walk right past the brand if it doesn’t appear in a multilingual format across mobile devices, websites, and SEO lists?

Why does a brand tap services for translation from French to English? To make sure that a potential user doesn’t dissolve in the air just because the branding content was not served in a more comfortable language? Yet, today, despite these multi-lingual winds, about 53.6 percent of web content stays in English.

Brands have to adapt to this new multi-lingual, truly global world. And some of the smart ones are very well adapting it already.

The rise in the number of LSPs (Language Service Providers) – as many as 18,000 firms worldwide, as per Common Sense Advisory – is indication enough.

These language translation services can either offer specific segment or service like translation, localization or interpreting or they can bring a slew of accessory features as full-service providers. These LSPs would cover everything, right from translation, interpretation, web content, audio-video content features, publishing, and narration to machine translation, transcreation, localization, localization engineering, etc.

Powered with a rich pool of professionals, instead of just freelancers; and assisted with advanced technology and offerings that emerged from innovation; these LSPs are charting a new path of solutions that brands tap with outstanding results.

Overall, the translation industry has seen a clip of 6.46 percent growth recently and the journey is becoming more interesting every quarter.

Brands and businesses are coming up with new needs and potentially huge opportunities in many areas. Mobile devices, video content, subtitles, instruction manuals, app localization, software interfaces and many other upcoming areas are bursting with a new degree of demand and appetite.

It’s a time of ample opportunities but also the time for the right set of services to come and play. Shallow and sub-standard work can serve a small segment with no precise strategy but for a multitude of brands or marketers, what is needed is a full-spectrum offering equipped with deep expertise. The use of professional language translation services will make translation truly worth the effort.

It’s a global world and not just brands in the existing mediums of the web, branding collateral and advertising need the support of translation expertise but also brands that are nascent or about to incorporate extensions like apps, mobility or IoT in an unprecedented way.

Language translation service providers with the right resources, skills and experience can push the lever in the right direction. They can bridge the distance between businesses and new age customers, no matter where they are – on a website, on a road, in an aisle, on a mobile app, or simply, on Google looking for a rival brand.

The Difference Between Certified And Notarized Translations

Prospective clients often ask what are the major point differences between certified and notarized translations. How does it differ from? Simply put, only a professionally certified translator can provide you with a certified or verified translation of documents. Certification involves preparing of officially signed translator’s declaration and rubber stamping or embossing each page of a document with the professional seal from the professional. In other words, the certified translation comes along with a guarantee of quality as the skills and experience of the translator are being certified by some official governing body. Being a professionally certified translator, one can attest to the quality of the translation.

In contrast to this, Notary Certified Translation can be provided by anyone. There is no necessity or mandatory requirement of quality as the translator needs not to be certified. The only official aspect of this process is that the translator will swear an oath and sign the affidavit in front of a notary. The notary will simply affirm that He or she has given the words that the translation being made by them are a true representation of the original document but do no assess the quality of their work per se.
Who needs certified or notarized translations?

In a nutshell, the translation for contractual, legal or immigration purposes, for instance, service agreements, birth certificate, court transcripts, or marriage certificate often need to be certified. Whereas the translation of the administrative purposes, like university admissions or colleges, might only need to be notarized. In some cases, it is also that the client might ask for a translation that is notarized as well as certified. The notarization of a document adds an extra layer of officialness to the certified form of translation, which can either stand alone in its own right or can be accompanied by an affidavit of notarization, depending on the need of clients.

Which service is more expensive?

For the act of translation, usually, the translators charge on the basis of per words, page or hours, irrespective of whether they want a notarized or standard translation services. Practically speaking, the difference in cost between notarization and certification is often negligible.

Who needs notarized translation?

They are needed by majority o the universities, colleges as well as evaluation agencies when someone submits their educational documents for the evaluation. Notarized certified translations are also required by for legal companies, proceedings, mortgaging companies, and employers. One can also verify with the authority where they plan to use translation whether the certified translation is sufficient or it required some sort of notarized certification.

Several companies offer the translatory services of both notarized as well as certified translations, that too within 1 to 2 days at a flat rate. If you are unsure about the difference between the notarized translation and certified translation or require some help then it is better to opt for professional help. The experienced managers will answer any questions regarding translation services we offer.