It is equally interesting to note that, between 1989 and 1995, the percentage of those franchisors without international operations who plan to establish franchises outside their country of origin grew 17 percent. Costs and Benefits of International Expansion through Franchising Let's explore for a moment what these franchisors anticipate when considering franchising internationally. The first benefit they expect is additional growth and expansion. Then comes added revenues and profits. Next is larger market share, followed by improved brand or name recognition.
Less competition is a factor, but it is far down the wish list.
Heading the list of drawbacks franchisors fear when going international is a lack of control over their business. This has lessened in scope somewhat over the years, but it continues to remain a major concern. Then, they are concerned about the difficulty of supporting franchisees, followed by worry over cultural and language barriers, then fearful of laws and regulations. Cost is a factor as well, but it follows all the others. But franchising has a way of overcoming drawbacks no matter where they arise.