Global franchising: Current Status and Future Challenges

Author/Creator ORCID

Date

2004

Department

Program

Citation of Original Publication

Hoffman, R.C. and Preble, J.F. 2004. Global franchising: Current Status and Future Challenges. Journal of Services Marketing , 18(2): 101-113.

Rights

Abstract

About a decade ago positive predictions were made regarding the international growth of franchising. This study was undertaken to examine the actual growth and development of franchising globally during the nineties. Using survey and archival data findings regarding the state of franchising in 40 countries are presented. Franchising has met or exceeded the growth expectations, generating an average of $3.7 billion in annual sales in the nations investigated. However, considerable regional differences in franchising activities do exist. The business sectors experiencing the most franchising growth are retail and restaurants. Franchising firms tend to export their business formats to neighboring countries or to countries with similar cultural characteristics. Operational concerns regarding legal and social issues across borders are also examined. Implications for practice and research are discussed.