Franchising

Franchising is among the most popular interorganizational modes to start or expand a business. It is also used to internationalize a well-known and successful brand. The concept of franchising has gained worldwide popularity. This entry gives an overview of the definitions used for franchise partnerships and the way franchising agreements are composed. It also reflects the advantages and disadvantages of franchise cooperation for the parties involved as well as the general economic impact of franchising. The entry concludes by briefly reviewing the economics of franchising and the growing role of international franchising from an economic theory perspective.