INTERNATIONALIZATION OF FRANCHISE SYSTEMS

Though the internationalization of firms has progressed in theory deve lopment and empirical testing during the last two decades, researchers continue to concentrate on the exporting behavior of manufacturers to the exclusion of other forms of international involvement. This explo ratory study provides a partial test of the internationalization hypot hesis in a franchise setting and identifies two segments of franchisor s, which differ in several ways. Franchise systems in the final stage of internationalization have larger international operations, generate a larger percent of sales from international operations, and have mor e diversified expansion plans. In addition, systems in the two stages differ in ownership structure. The findings add insights into the? int ernationalization process of franchise systems that are useful to prac titioners in the implementation of market expansion strategies and to researchers in the continuing effort to further understand internation al franchising.