Taking a franchise brand international requires research, dedication, and a lot of hard work. And as we looked at last time, it requires strong relationships with the right people on the ground in the international countries. People like Americans Jake Weinstock and Paul Kuebler, who teamed up with Russian entrepreneur Vladimir Grumlik, to open Gold’s Gym franchises.
Weinstock and Kuebler had been living and working in Russia during the early 1990s immersing themselves in the language, business climate, and culture of the nation. The two identified a need for health-themed workout facilities in the former Soviet Union. When they met Grumlik, a Russian entrepreneur who had helped open some Nike stores among other endeavors in his native homeland, they knew they were on to something. They borrowed money from friends, families, and financial institutions to open their first Gold’s Gym franchise in Moscow at the end of 1996.
In the beginning there was an initial rush of early success followed by a cooling period brought on by some economic turmoil in the late 90s (much like what they’ve faced over the past 18 months). But those tenuous times were followed by a period of growth and expansion – which continues today. Hard times can teach fundamental lessons about international franchising. It’s necessary to create and maintain a stable business that can endure ups and downs in any market climate – especially internationally.