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Franchising as a model of entry into foreign markets. An evaluation
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Seminar paper from the year 2017 in the subject Business economics - Business Management, Corporate Governance, grade: 2,0, University of Applied Sciences Essen, language: English, abstract: During their lifecycle, companies often plan to expand into a foreign market. One of the most difficult decisions they have to make beforehand, in order to do so suc-cessfully, is the choice of the mode of entry. There are many opportunities that have to be evaluated differently from case to case which can have a huge impact on the performance of the company within the new market. Franchising is a com-mon strategy for entering and growing in markets. This seminar work is intended to evaluate franchising as a mode of entry. It will outline advantages and disadvantages and aims to give guidelines for companies, with regard to creating and managing a franchise system. Therefore McDonald's will be highlighted in order to show how this can be possible. Moreover, this seminar work will make clear in which cases franchising is not the right mode when entering into a new market. Therefore the whole topic will be considered before a more detailed discussion of the fast food sector.
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