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Global franchising: current status and future challenges

Richard C. Hoffman (Professor at the Perdue School of Business, Salisbury University, Salisbury, Maryland, USA)
John F. Preble (Associate Professor in the Department of Business Administration, University of Delaware, Newark, Delaware, USA)

Journal of Services Marketing

ISSN: 0887-6045

Article publication date: 1 March 2004

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 1990s. 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.

Keywords

Citation

Hoffman, R.C. and Preble, J.F. (2004), "Global franchising: current status and future challenges", Journal of Services Marketing, Vol. 18 No. 2, pp. 101-113. https://doi.org/10.1108/08876040410528700

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited