To take a look at franchising as an opportunity for Mexican business that want to expand their presence abroad the Americas.

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the world. We are talking about KidZania. Have you heard about them? Either way, do some research about Kidzania’s case and take notes (you can start with these articles published in The Morning News and in The Financial Times).

Once you are done with your research, please provide a detailed description of their business model, their international expansion strategy, a list of desirable qualifications in potential franchisees, and the institutional support and training programs typically provided by KidZania (the franchiser).

According to what we have learned in this course so far, answer these questions..

What would you tell to KidZania’s CEO about the current business environment in the United States? Explain.

Would you recommend KidZania to enter the US market today? Why or why not? And where exactly?

Are there any special improvements to be implemented before landing in the US or should they just follow their regular franchising strategy? If so, what is there to improve?

a, KidZania’s business model

The business model of Kidzania relies heavily on sponsorship from companies interested in participating in the project as they provide up to 50% of the capital needed to launch a new franchise. What the sponsors earn from this business model is access to captive young and impressionable audience to promote their products and brands, while the children have fun and experience what it is like to work in these activities for real while the capital invested make the KidZania experience possible.

According to Mike Deri Smith:

“School visits are an important part of the KidZania business model, making up one-third of KidZania’s visitors. Most of the parks’ operating hours overlap with the school day, so class trips are important to keep things busy outside of weekends and vacation times. In Japan, KidZania representatives have even attended PTA meetings to introduce and promote KidZania Tokyo”.

So as we can see this business generates revenue by attracting children and their parents to the experience of being in a “country” with it’s own currency, banks, jobs, “system”, etc that is both fun and educational. So fat the model has proven a success with many franchises operating worldwide.

The founder of the business just owns three of them and the rest are franchised to entrepreneurs around the world like Joel Cadbudy in England, the franchisers are responsible for running the business in their respective countries but they receive training, support and guidelines from the corporate headquarters.

b. International expansion strategy.

The international expansion strategy of started with Asia as it main focus because 60% of the world population lives in this continent, the Tokyo Park was the first to open outside Mexico and it attracted nearly a million people in it’s first year. Three more parks are in this region totally four of their existing parks.

The current plans of the company are to expand in Turkey, Chile, Brazil, Malaysia, India, Egypt, Thailand, Saudi Arabia Kuwait and China so it can be said that the current focus of the company has been in South America, Asia and the middle East. China is one of the hottest new places for the company because of it’s one Child policy because this policy has encouraged parents to put all their attention and resources in their only child.

c. A list of desirable qualifications in potential franchisees.

1 That they are in a growing city of an emerging market or a mature developed one full of kids with a sizeable amount of middle class parents interested in the services provided.

2 That the location Is inside a mall so that the people who already go to the mall to enjoy their free time can easily “hop” to one of the KidZania’s facilities.

3 That there are brands well suited to sponsor the franchise and work together in the KidzaNia project.

d. Description of institutional support and training programs provided by Kidzania to the franchises.

Conclusion: