Sydney Morning Herald:

Any franchisor will attest that an unexpected email from China or India offering US$250,000 for the right to sell franchises in one of those countries is tempting, particularly when overseeing the expansion on your own is such hard work.

But signing over a master franchise agreement for a big cheque is rarely the money spinner it appears to be.

Few franchise operations overseas turn a profit in the first few years and serious damage can be done to the brand if an unsuitable operator is handed the controls.

At the same time, the resources required to train the overseas franchisor and make sure the correct systems in place are a drain on cash and time. At best, head office is consumed. At worst, domestic operations are jeopardised.

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