Often reported as the most successful method of product and service distribution developed during the Twentieth Century, franchising is achieving large-scale global success. Businesses today are encountering a climate open to, and accepting of, new products and services. Language and commercial barriers are reducing further, thus increasing the extent of international business. This however has its exceptions.
Speaking over 25 years ago on the topic of international franchising arrangements, Professor Warren Pengilley commented that franchisors planning overseas expansion should be prepared for this exercise to take twice as long and cost three times as much as anticipated. Professor Pengilley’s point was that international expansion is a complex, and therefore a costly and time consuming exercise. Full article.