Spread of franchising: a multinational comparison based on the notions of innovation diffusion

Investigates the globalization of franchising through a discussion of the literature on innovation diffusion. Proceeds then to evaluate the globalization of format franchising in 31 countries, drawing data from Arthur Andersen’s multi‐national study. Finds that the USA has the greatest number of franchisors and franchisees, Japan seems to have a different franchise structure when compared to the other countries studied, and Israel is a franchising novice. Presents a number of tables, accompanied by notes of caution on analysing the statistics. Mentions briefly some examples of franchises. Refers the findings back to the literature review to assess how well they match the theoretical descriptions of innovation diffusion. Discusses some elements of franchising, looking at innovation and replication, maturity, collectivism versus individualism, juridical issues and educational differences. Suggests areas for further investigations and outlines the author’s proposed research undertakings.