Market Conditions Favoring Master International Franchising

Master international franchising is among the fastest growing methods for international franchisors to expand abroad because this method involves minimal financial risk and a quick go-to-market strategy. This article reviews the extant literature and develops propositions relating specific environmental factors to the propensity of franchisors to use master international franchising. We propose that master international franchising is more likely when the economic potential and level of corruption are low; and when the competitive intensity, demand variability, franchise knowledge, masculinity and individualism in society, geographical and cultural distance, country risk, and level of legal protection are high.