The Internationalization of Franchise Systems into Emerging and Transitional Economies

Although franchising has been successful in theU.S. and other developed nations, franchising is still being explored inemerging countries and developing economies. The goal of this research istwofold: to identify the characteristics of an emerging market, as basedon franchisor specifications, and to discuss the influence of economic growthand market governance on franchise systems. Several emerging markets are examined, including Central and Eastern Europe,Mexico and South America, China, India, Asia, Kuwait, Kazakhstan, and SouthAfrica. Each emerging market region and nation is discussed in terms ofthe factors of economic growth and government involvement, and the presence ofsignificant international franchises within each region and nation isexamined. Much of the focus lies within the following industries:restaurants/fast food, hotels, automotive, and coffee. The impact of NAFTA is also discussed when examining internationalfranchising within Mexico and South America. This compilation of researchregarding international franchising in emerging markets seeks to aidfranchisors in understanding emerging markets and their significance forfurther international expansion. (AKP)