ABSTRACT

Introduction Franchising has become an important mechanism for many service firms to enter foreign markets. A 1998 survey conducted by the International Franchise Association indicated that of 578 franchisors, 41 per cent had some type ofinternational operations (IFA 1999). Although many of these units are currently limited to Canada, the trend is towards greater overall international expansion. In addition, the pace of international investment by individual franchisors is also increasing. For example, by 1994, one quick service food franchisor had expanded its operations to sixty-five countries with over 4,000 franchised outlets, even though it only began international operations in 1967 (Sadi 1994).