International business expansion through franchising: the case of fast-food industry

The purpose of this research project was threefold: 1) to establish a set of research questions, propositions and hypotheses about the nature of international fast-food franchising; 2) to identify the distinctive strategies employed by fast-food franchise firms in foreign markets and 3) to provide a set of guidelines for managers which will assist them in dealing with the challenges of initiating and expanding a fast-food franchise system in a foreign country. A multiple-case study approach was used focusing on how U. S . franchise firms have adapted their domestic business practices to the Canadian, Japanese, and Russian Markets. Special attention was given to the degree to which their firms have modified franchise objectives, expansion strategies, marketing mix elements, control system and support services.

A principal finding of this research project is that fast-food companies do in fact extend domestic franchise strategies to foreign markets when expanding internationally. However, they do make certain alterations in their domestic method of doing business. The alterations are in the areas of expansion strategies, franchise objectives, control systems and support services. These alterations do not follow a consistent pattern. They vary from country to country and from firm to firm.