Drawing on her experience with Subway, KFC, Hardee’s and Krispy Kreme, Sindhuri Talwar discusses master franchise partnerships, market entry strategies, franchisee profitability and the challenges of scaling QSR brands internationally.
International expansion presents significant opportunities for quick-service restaurant (QSR) brands, particularly across the Middle East, Africa, South Asia, Turkey and the Commonwealth of Independent States (CIS). However, entering new markets requires more than a strong brand and ambitious development targets. Success depends on choosing the right franchise partners, understanding local consumer behaviour, maintaining operational standards and ensuring that expansion remains commercially viable.
For global restaurant brands such as Subway, KFC, Hardee’s and Krispy Kreme, franchise partnerships play a critical role in translating international growth strategies into sustainable local businesses.
Sindhuri Talwar, an international QSR and franchise development professional with experience across multiple markets and franchise models, shares her insights with Abha Garyali Peer from Fran.News, on evaluating new markets, building successful master franchise partnerships and balancing expansion with franchisee economics. She also discusses how alternative formats, localisation, consolidation and artificial intelligence could influence the next phase of international franchising.
You have worked on franchise development across the Middle East, South Asia, Turkey and CIS. When evaluating a new market for a global QSR brand, what are the first signals you look for to determine whether the market can support sustainable franchise growth?
Sindhuri Talwar: The region across the Middle East, Africa, South Asia, Turkey and CIS has tremendous potential, given their population and a demographic structure that is skewed towards the young. This new generation has grown up aspiring to have a slice of the brands that they have been exposed to elsewhere and have grown to love. It is a key segment to ensuring success in the market and future-proofing the brand.
This aspiration also needs to translate into repeat purchases. I look at whether the brand’s offering and price point fit local consumption habits, and whether the economics can support growth.
The geopolitical and regulatory environment is another important signal. Import restrictions, currency controls and the ability to make cross-border payments can affect how easily a brand enters and operates in a market. I also look at whether we can build a reliable supply chain and find a partner who can deliver the experience consistently.
In addition, how other major QSR brands have made their mark and are performing in the new market is worth tracking. Since they’ve already tested the waters, it is a good indicator of which trade areas and locations have performed well.
Together, these signals help determine whether a market belongs on an active whitespace list and what needs to be resolved before moving forward.
You were involved in master franchise agreements in markets including Pakistan and Azerbaijan. From your experience, what makes a master franchise partnership work beyond simply having the financial capability to develop stores?
ST: Financial capability of a master franchise is a pre-requisite but it is not sufficient to ensure a successful run. Operational expertise, authority in the territory, local connections, strategic alignment of the leadership of the master franchise with the brand’s leadership and the right managerial capability all matter. Where sub-franchising is part of the model, the ability to carry the sub-franchisees along in their decisions makes a difference too. Financial capability gets the partnership started. Commitment keeps it going.
Beyond everything else, an unwavering commitment to making the partnership work has what set apart the master franchisees that have been successful. That commitment shows up in the people they hire, the systems they build and how openly they discuss challenges. Whether it is an economic downturn, a supply chain crisis, a consumer sentiment backlash or profitability issues, it takes two to tango. Both sides need the willingness to dissect the problem, agree on the changes required and follow through. That is what builds a resilient and successful partnership.
Having worked with Subway, KFC, Hardee’s and Krispy Kreme, you have seen different franchise models and brand strategies firsthand. What do you believe is the most important lesson global QSR brands should understand before handing over responsibility for market development to a local franchise partner?
ST: Different brands have different operating needs, and the local franchise partner must have the experience and wherewithal to carry the brand on their shoulders in the territory. This means upholding brand standards in terms of design, principles and service, while building a team that delivers them consistently. They are the ones creating ambassadors of the brand every day.
Beyond capability, there is often a power dynamic between the brand and the franchise partner. In some cases, the brand is too stringent and gets involved in every nitty-gritty. In others, the partner successfully runs multiple brands across multiple countries and is difficult to influence because they believe they understand local nuances better.
This is a careful balancing game. Too much intervention can frustrate the partner and slow decisions. Too much distance can weaken the brand’s influence and allow standards to drift. The brand needs to find its ‘Goldilocks zone’ where this is just right, close enough to influence, with enough room for the partner to lead.
For me, the most important lesson is to establish that balance early: agree on what is non-negotiable, where local adaptation is welcome, investment required, and how decisions will be made together. The agreement can assign responsibility, but the working relationship is what makes it deliver.
Franchise expansion is ultimately about more than signing agreements and opening units. How do you approach balancing development targets with franchisee economics, operational capability and the long-term health of the network?
ST: Any new unit added to the network has an impact on network health. We assess the demand it can capture, potential cannibalisation and whether its overall contribution to the network is positive. Market mapping is done at the outset to identify whitespace trade areas so that locations are pursued strategically.
Franchisee economics need to work to ensure that development proceeds at the expected pace. Sustainable economics lead to sustainable development. There have been instances where development had to slow down while the right interventions addressed the economics. This happened for one of the brands I worked with in India, where the master franchisee significantly slowed down development because of lower sales.
We worked with the partner and a consultant to understand what needed to change. A stronger value offering emerged as a missing piece. As sales regained traction, development picked up too. Sometimes slowing development is the right decision if it allows the existing business to recover.
The growth engine within the master franchise also needs to be robust. The right people, processes and supply chain capacity need to be in place to deliver new store growth. Otherwise, expansion creates pressure and operational hurdles that the business is not ready to absorb.
In markets affected by economic or geopolitical uncertainty, franchise development can become particularly challenging. What strategies have you found most effective for keeping expansion moving while protecting both the franchisor and its local partners?
ST: Non-traditional channels for expansion play a key role during uncertain times. Franchisees tend to become more hesitant to make the investments originally projected into the brand. Having a range of non-traditional formats like kiosks or cloud kitchens, give more options to the franchisee to keep development moving. Flexibility in the development plan can protect commitment to the market.
These formats still need to make commercial sense. A lower investment only helps if the format can serve the customer well and deliver viable economics.
Localisation also helps reduce the impact of uncertainty to a large extent. It removes import dependency from the equation, whether for equipment, décor materials or the operational supply chain. Making this a priority early can serve the business well when choked straits and shipping disruptions increase costs or delay openings, provided local alternatives meet brand standards.
It is also key to have ongoing communication with the local partners at multiple levels, across departments and senior leadership during critical times so that there is immediate visibility, alignment and consensus on the situation and its resolution before it becomes a pressing matter.
As international QSR brands increasingly look beyond traditional flagship locations, where do you see the next major franchise growth opportunities coming from, smaller cities, new formats, multi-unit operators, non-traditional locations or entirely new markets?
ST: The next growth opportunity depends on what the brand has already built. For me, this is a combination of brand maturity and brand reach. Maturity is how established the brand and its operating model are in a market; reach is how widely it serves customers.
Where maturity and reach are both low, I would prioritise strong traditional locations to establish the brand, build familiarity and prove the operating model.
If brand maturity is high but brand reach is low, the opportunity is to expand into underserved trade areas and smaller cities, supported by capable multi-unit operators to improve reach.
Where brand reach is high but brand maturity is still low, I would focus on strengthening consistency and customer acceptance across the existing network before accelerating expansion. Selected non-traditional locations may help build familiarity, provided they deliver the core experience well.
Where maturity and reach are both high, growth becomes more selective. New formats and non-traditional channels can help the brand serve additional occasions or locations where a full-size restaurant would not work.
Smaller cities, new formats, multi-unit operators and new markets can all offer growth. The right choice depends on the gap the brand needs to close.
Looking ahead, what do you think will define the next generation of successful international franchise partnerships, and what should franchisors and franchisees be doing differently today to prepare for that shift?
ST: I see consolidation playing a larger role in franchising, whether through brands coming under one umbrella group, locations coming under one operator, or countries coming under one master franchise. Consolidation creates economies of scale to improve profitability, but the benefit depends on how well the larger business is managed.
Franchisors need to look at optimising their portfolios and support structure to enable this shift. Franchisees need to invest in the people, systems and processes to manage a larger business and stay in the game. Both sides need to stay close to individual store performance and relevant to the rapidly changing consumer needs.
As operators become larger, they need to keep sight of both the overall business and what is happening at each store. AI can help provide that bird’s eye view and worm’s eye view, making it easier to spot gaps, establish accountability and act sooner. Those who use these enablers well will be better placed to manage the complexity that comes with scale.
I believe successful partnerships will be those that grow without losing touch with their local markets or with each other. The bigger the business gets, the closer the partnership needs to be.
