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The franchising business becomes an essential to the economy of Malaysia and social. It also considers a popular choice to develop entrepreneurs particularly among Bumiputera in Malaysia. Recognizing the importance of the franchising business, the Government of Malaysia through the Ministry of Domestic Trade and Consumer Affairs (MDTCA) has developed programs and activities to accelerate growth of the franchising business. In February 2020, a total of 915 franchise systems or franchisors have been registered under Malaysia Franchise and subsequently few franchisors have penetrated worldwide such as in Saudi Arabia, Indonesia, United State of America, and Australia. At the same time, Perbadanan Nasional Berhad (PNS) and Malaysia Franchise Association also strongly take part in many franchise initiatives, programs, and activities to support the development of franchising business in Malaysia. Besides that, Malaysia also has developed the Franchise Act to safeguard the franchising industry. Nevertheless, there still exist some issues and challenges. Hence, this paper aims to review the franchising business in Malaysia by discussing the development of franchise business in Malaysia, the supports, and the issues and challenges.

Franchising manifests a bundle of risks created by the delegation of functions as both franchisor and franchisee exploit their respective comparative advantage. The galvanization of this advantage is governed by the franchise agreement and optimized by the effectiveness of the governance structure. This chapter considers the concept of risk and discusses its implications in valuing franchisee-operated businesses. It examines how risks arise, where they congregate and synthesizes the specific franchising issues relating to risk-adjusted cashflows, risk analysis, risk mitigation, and risk pricing. The authors propose that risks in franchising are multi-layered and hierarchical. Consequently, this relationship is represented in a Franchise Risk Ecology (FRE) comprising risks inherent in the market, the franchisor, the system, the industry, and within the franchisee-operated business.

The purpose of this paper is to investigate the relationship between capabilities and renewal of organizational and business know-how in franchise networks.

This work uses a comparative case study of adaptive, absorptive and innovative capabilities to investigate knowledge renewal in 16 franchise networks.

The findings show that adaptive and innovative capabilities complement each other to foster know-how renewal. Furthermore, networks without internal R&D need to mobilize adaptive, absorptive and innovative capabilities to renew both organizational and business know-how. The findings also highlight that the three capabilities are interconnected.

The results of this research could provide insights for franchise networks to regenerate their knowledge base and ensure their long-term survival.

The underlying capabilities that explain organizational and business know-how renewal in franchises have not been investigated.

The aim of this research work is to consider the relevance of corporate social responsibility (CSR)-related social media communication in franchise networks, with a focus on the perceptions and expectations of franchisors and franchisees and franchisors and franchisees' customers.

Three studies were conducted as part of this research: two qualitative studies with franchisors and franchisees in the first instance (N = 39) and franchisors and franchisees' customers in the second instance (N = 13), as well as an online ethnographic study of customer reactions (N = 871) to different CSR communications from the networks already interviewed.

The results show that CSR communication remains very important in a context characterised by a growing interest in CSR commitment in companies in general and in franchise networks in particular. However, different conditions of effectiveness of this CSR communication have been identified. The different conditions can avoid CSR's detrimental effects and increase CSR's credibility.

In franchise networks, the task of communicating about CSR is complex. This requires the integration of franchisees, which are very important to CSR's success. CSR communication also requires integrating customers by studying their expectations at this level. This study gives the basic keys to the success of CSR communication in franchise networks, from the point of view of franchisors, franchisees and the customers of franchisors and franchisees.

This study focusses on a topic that has received very little attention, particularly in franchise networks. The various studies conducted allow us to better understand the particularities of CSR communication, particularly in the context of tripartite franchisor–franchisee–customer relations.

This article examines the influence of market opportunity, risk, and distance on the choice of destination country for Mexican franchises.

The research hypotheses are developed under the theoretical approaches of institutional theory, agency theory, and transaction costs theory and were contrasted on the data obtained from 52 Mexican international franchisors operating in 37 countries as of 2016. This study uses linear regression with ordinary minimums using the STATA 13.1 software.

The results reveal that a larger market size, a greater level of economic freedom, and a smaller geographic distance are determining factors in the choice of destination country. No statistical significance was found in the variables GDP per capita, level of democracy and cultural distance.

This research contributes to the theoretical and practical field. On the theoretical side, this study integrates institutional theory, agency theory, and transaction cost theory to evaluate the factors of the destination country that influence the internationalization process of the franchise. Another contribution of this study is to apply theories and models of developed economies to the process of internationalization of franchises in an emerging economy. Additionally, this study is based on a model that considers the distance, opportunities and risks that are considered by Mexican franchisors in the selection of the international markets in which they maintain operations. This study contains important practical implications that can serve as relevant information for decision-making in the franchise sector and its internationalization. This data is valuable for new models of Mexican franchises that decide to start their internationalization process.

The authors conduct a structured analysis of the literature on the determinants of economic and financial franchise performance and develop an integrative framework that unifies the literature from franchisor as well as franchisee perspectives.

53 relevant research articles on economic and financial franchise success published between 1976 and 2020 were identified. After providing an overview of the empirical methods and theoretical perspectives found in the literature, an original classification system of franchise success determinants was developed.

More than 50 different variables impacting economic or financial franchise success were identified and grouped into ten distinct categories. The most impactful categories are the franchise relationship, franchisee characteristics and capabilities, franchisor variables and the franchise environment. The study’s integrative framework illustrates not only the impact of these factors on franchise success, but also reveals which areas require more attention.

As the study focused on understanding the determinants of franchise success, any measures related to franchise failure were excluded. Also, the role of venture capital and stock market listing as growth strategies in the franchise sector were excluded.

The study’s framework shows how the management of franchise success is complex and that franchise relationship, franchisee and franchisor variables as well as the franchise context need to be taken into account. It illustrates that there is a hierarchy with which these determinants should be prioritized.

The article proposes the first systematic review of the literature on the determinants of economic and financial franchise success. The contribution offers both, researchers and practitioners, new and useful insights for future knowledge development in the field.

This paper aims to identify the driving variables in the franchise decision to expand abroad. It also explores the effect of a set of factors on the intensity of the internationalization process pursued by franchise companies. To achieve this goal, the author considered the following variables: the role of management and franchising experience, brand awareness and the sector of activity (product versus service). The international franchise ratio and the size of the chain were also considered.

This study uses a quantitative approach applied to the Spanish franchise system, which occupies the second position in Europe in terms of the number of franchisee outlets (65,810) and the first position in Europe in terms of the number of franchisors (1,232). Moreover, in early 2016, a total of 302 Spanish chains were doing business in 137 foreign countries with 20,891 outlets established abroad. Data were obtained from secondary sources (i.e. the Spanish Franchise Association, the leading Spanish franchising Consultant Group, etc.) The most important international franchising associations were also considered. Multiple regression analyses were used to test the research hypotheses.

Results conclude that that franchisor’s brand awareness plays an important role in the decision of becoming a global franchise chain. In addition, the franchising experience, business orientation (product versus service), the international franchise ratio and the company size have significant impacts on the intensity of the internationalization process pursued by the franchisors.

The scant attention given to this topic has usually been examined from the US and British base and has focused on a reduced number of sectors of activity such as hospitality and manufacturing doing business in a single region (i.e. developed or emerging nations). To fill this gap, this work analyzes the international spread of the entire Spanish franchise system, which in early 2016 had presence in 137 foreign countries and operated in a total of 52 different sectors of activity.