Free Custom «Franchising» Essay Paper

Free Custom «Franchising» Essay Paper


Business expansion in the international market needs cost effective distribution mechanism. Franchising precisely denotes to the enhancement of the business with a cost effective means. Indeed, franchising allows retailers to enter to the international markets with the cost effective manner and helps enhance with other investors. Moreover, earlier the chain store model is used to the retailer expansion in local, national, and international markets. But, now, franchising has given an alternative to the business enhancement with low cost and withy high returns comparatively (Hoy and Stanworth, 2003).

Counties where franchising is common:

Almost in every developed country franchising is quite common. However, the top list countries where franchising is common are United States of America, Brazil, Australia, China, France, Italy, Spain, United Kingdom, New Zealand, Russia, Kazakhstan, almost entire Europe, and India is now emerging in the franchising. Therefore, in western counties franchising concept has been very common and already been implemented practically. However, in the eastern counties, the franchising concept of business expansion has been emerging.

Franchising facts and figures:

The initial idea in the beginning coined out for franchising was to allow independent partners, agencies or contractors to use the business name, food, supplies, logo in exchange of commission/fee.

United States of America has quite older history of franchising. Franchising was started since 1850 in U.S and has been enhanced quite strongly with the passage of time. Therefore, United States is one of the pioneers in the field of franchising. Therefore, now, currently United States has quite strong standing in the field of franchising and the most developed franchises are there in United States.

As franching has grasped its cost effective growth solutions. The facts tells that

Brazil is one largest franchising hub. There in Brazil above 1000 franchises are working with more than 62000 outlets. Therefore, Brazil has been the largest franchising activity player in the world.

In central Asia Kazakhstan has become the leader in franchising business. The Kazakhstan government has supported the franchising business with special law, regulations and with the industry support to franchising. That is why Kazakhstan annual turnover for franchising business was one billion US$ in 2010. Moreover, there are more than 300 franchises with more than 2000 outlets.

France and New Zealand are the emerging best markets for franchising. France has one of the largest setup of franchises in Europe and New Zealand is also supporting and enhancing the franchises. Therefore, the two countries are also becoming the big establishments in the world in reference of franchising.

Hereinafter, with taking an glimpses of franchising. It can be observed and realized that the future is of franchising. And it is due to its cost effectiveness and reasonable business expansion idea.

Future of franchising:

It is matter of fact that future of business expansion immensely based on franchising. As we can examine, that it has already been implemented and enhancing furthermore in the western counties, and now emerging quite speedily in the eastern countries as well. Therefore, as a low cost solution, competitively high returns partnership as well as with less chain management tensions. Franchise is and will be the most favorable way of business expansion.


At the end of treatise, it is better to restate the thesis that business expansion in the international market needs cost effective distribution mechanism. However, franchising is most favorable, profitable and future oriented solution for world wide business expansion. Therefore, the future is of franchising.



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