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Current Trends and Research in International Franchising

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As globalisation plays an increasingly prominent role in the world economy, businesses are prudently seeking to expand their operations abroad.

Franchise brands have “remained bullish on international expansion,” despite the different challenges they face, including a slowing global market and a lack of knowledge about franchising (Prewitt 2008). This is especially true outside of the United States, where “the franchising market is not as well understood in some markets” (Gunter 2008). The franchisor’s obligations, such as providing training and sticking to the stipulations in the franchise agreement, are not as clearly delineated in international franchising; however, the franchise structure common in the United States is beginning to gain ground in international locales, where the environment remains favourable for starting a new business.