Global diffusion of franchising: A country level examination

Abstract

Franchising has experienced rapid international growth. This study examines strategic and country characteristics in twenty-four nations to explain the spread of franchising across borders. The size of the franchising sector along with the country factors of per capita income, urbanization, media availability, and certain cultural values were positively associated with franchising diffusion. Contrary to expectations, strategic characteristics were more important than country characteristics in explaining franchising diffusion. The implications of these findings for practice and research are discussed.