Franchising is a business model in which many different owners share a single brand name. A parent company allows entrepreneurs to use the company's strategies and trademarks; in exchange, the franchisee pays an initial fee and royalties based on revenues.

1. Franchising - International Expansion strategies
Corporate Level Strategies

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. International Expansion

4. Franchising
Franchising is a business
model in which many
different owners share a
single brand name. A
parent company allows
entrepreneurs to use the
company's strategies and
trademarks; in exchange,
the franchisee pays an
initial fee and royalties
based on revenues.

5. Example of Franchise
• Examples of franchises
include McDonalds,
Subway, 7-11 and Dunkin
Donuts.

6. Licensing & Franchising
The parent company also
provides the franchisee
with support, including
advertising and training,
as part of the franchising
agreement.

7. Licensing & Franchising
Licensing is similar to
franchising except that
the franchising
organisation tends to be
more directly involved in
the development and
control of the marketing
programme.

8. Licensing & Franchising
The major drawback of
licensing is the problem of
controlling the licensee
due to the absence of
direct commitment from
the international firm
granting the licence. After
few years, once the know-
how is transferred, there is
a risk that the foreign firm
may begin to act on its
own and the international
firm may therefore lose
that market.

9. Example
ITC Hotels and ITT
Sheraton corporation had
an agreement under which
ITC Hotel’s Welcom group
franchised two of its hotels
in Bangkok and Hong kong
to ITT Sheraton holding, in
exchange, the franchise for
Sheraton in India. Later,
partners decided to set up
a joint venture with
Sheraton having major
stake to manage all new
ITC hotel projects in India.