Market and Partner Selection Processes in International Retail Franchising

This paper adopts a qualitative, case study approach to examine the market and partner selection processes of retailers operating internationally via franchising. Despite the increasing prevalence of franchising as an entry mode for international retailers, little research exists that considers how these firms choose franchise markets and franchise partners. The paper proposes a conceptual framework of the market and partner selection process that exhibits opportunistic and strategic behavior. Firms adopting a strategic approach undergo a market screening process before market attractiveness factors ultimately lead to the market selection decision. In the strategic partner selection process that follows, finance, business know-how, local knowledge, a shared understanding of the business and brand, and, ultimately, chemistry between the partners are the key factors influencing partner selection. In the case of an opportunistic approach to market and partner selection, the process reverses, with partner selection directly influencing market selection.