A framework for implementing retail franchises internationally

Abstract

Purpose

For a predetermined form of business entry, the international market research process for selecting country markets requires the research questions and research process to be tailored to the entry mode. Retail business franchisors researching potential international markets must not only research market and demand conditions but also explicit issues related to partner selection, the business system's need for adaptation and contract development, often in different cultural and legal contexts. The paper aims to propose a framework that identifies the research issues and a process for implementing a retail business franchise system into international markets.

Design/methodology/approach

The need for a tailored approach is established by drawing from the business franchising and international market research literature. Critical issues that may face franchisors and potential partners are ordered into a framework that can be used to guide decision‐making of the parties involved.

Findings

The research framework seeks to qualify potential partners, adjustments that may be required to the business system for a specific market and parameters for the contract that will bear on the investment return. The three‐step market research process offers a prescriptive approach that integrates market selection with the entry mode.

Originality/value

The proposed framework encompasses all potential parties. It offers a checklist of potential problems as well as a process for negotiating through to an outcome that strengthens the likelihood of a successful transfer.

Citation

Thompson, M. and Stanton, J. (2010), "A framework for implementing retail franchises internationally", Marketing Intelligence & Planning, Vol. 28 No. 6, pp. 689-705. https://doi.org/10.1108/02634501011078101