Entry and Governance Modes in International Franchising: A case study

Abstract

This paper analyses the entry and governance mode choices in the internationalisation process of a Brazilian franchisor. The study investigates the factors that helped this company, a supplier of fibreglass swimming pools, to achieve fast international growth and become one of the most internationalised Brazilian franchisors with presence in 40 foreign countries. Six interviews were conducted with the CEO/founder, two directors and three experts from franchising associations (ABF and IFA). The analysis showed that this franchisor's fast internationalisation process was due to trust, relationships and network building, factors that impacted its entry and governance mode choice in the foreign countries. The partnerships established with local players influenced the choice of the governance mode. This study may contribute to decision-making in international franchising by showing the relevance of trust, local relationships and business networks for the internationalisation of franchise chains, considering the uniqueness of each foreign market.