Global Franchising and Development in Emerging and Transitioning Markets

Abstract

The conventional wisdom that prevails in theWest is that franchising provides a net benefit to the host market. In addition to the obvious economic benefits of employment, output, and tax, franchising development injects expertise and training in various industries and increases the entrepreneurial and managerial capabilities and skills of the labor force. The unique nature of international franchising may, however, create social pressures, cultural clashes, and perceived challenges to national cultures. This article discusses a framework to assess the potential economic and social benefits and costs of international franchising. It then discusses the implication of this framework and an agenda for future research.