Evaluating Foreign-Market Environments for International Franchising Expansion

Abstract

The purpose of this study is to investigate the influence of environmental factors on international franchising, and to offer a normative model to evaluate the international franchising environment. Using correlation analysis, this study finds that environmental factors including economic, demographic, cultural and political factors are related to and may influence the decision of franchisers to expand their operations in a host country. The study suggests that franchising practitioners conduct an environmental analysis of the foreign market that, at minimum, will integrate the variables discussed in this paper.