ABSTRACT

Franchising in the international market is expanding rapidly; in particular, restaurant franchises have seen a tremendous increase in recent years. American restaurant franchises are now prevalent in almost every corner of

the world. The United States, pioneer in the fi eld of franchising, continues to be the worldwide leader in restaurant franchising. There are over 200 foodservice companies operating internationally. The quick service segment of the restaurant industry is the fastest growing segment in foreign markets. McDonald’s boasts of cutting the ribbon on a new restaurant somewhere in the world every four hours on an average. They seek to dominate before the competition even establishes a foothold. They claim that most of the growth still comes from existing markets, particularly the Big Six-Japan, Canada, Germany, England, Australia, and France-that have the most restaurants. It was also reported that Extra Value Meals are powering McDonald’s sales in the above-mentioned and other established markets, some of which sell a higher proportion of Value Meals than is sold in the United States.