Topic Post #3 - Franchising Around the Globe

Kotler and Armstrong discuss the franchise organization in Chapter 13 (p.406). Franchises have gone global! Here is an interesting article that I found through The Global Small Business Blog that details how prospective franchisees are training for business ownership. What's notable about this article is that US franchisees are traveling abroad to hook up to franchise scenes in countries like Australia, Canada, and Japan. There's been a flood of foreign franchise concepts into the US, including refilling ink-jet and laser cartridges, exotic food restaurants, and pet training and grooming services.

You probably know that franchising is a US tradition, with its roots in the 1860s and the Singer Sewing Machine Co. It really took off as a business concept in the early 1900s with GM franchised dealerships. Soft drink bottlers, and the auto and gasoline industries were big franchisers by the 1930s. Now we've got franchises for dozens of concepts including day spas, pet grooming services, and realty companies (I just discovered Wal-Mart Realty).

This articles discusses the franchise market and the challenge of going global. Some of the trouble seems to come with adapting the company's product, as well as unfamiliarity with brand names and products. We talked a lot about these issues as we explored global marketing in class. Some of the foreign franchises will have to change their methods and menus (although the chicken sounds delicious), deal with territory issues, and business registrations and legal fees, but there can be a lucrative payoff. Check out the last paragraph of the article.

If you feel that franchising is your true calling and you enjoy travel, see these websites: Pollo Campero, Kumon Math, or Koya Japan.