Brazilian franchisor: Entry and operation of internationalized franchise

Authors

  • Helder de Souza Aguiar Universidade Anhembi-Morumbi - UAM, São Paulo, SP, Brazil
  • Marcos Roberto Luppe Escola de Artes, Ciências e Humanidades da Universidade de São Paulo, EACH/USP, SP, São Paulo, Brazil
  • Paulo Tromboni de Souza Nascimento Escola de Artes, Ciências e Humanidades da Universidade de São Paulo, EACH/USP, SP, São Paulo, Brazil

DOI:

https://doi.org/10.18568/1980-4865.12316-30

Keywords:

Franchising, International Operation, Entry Mode, Franchisors, Internationalization.

Abstract

This study aimed to compare the entry and operations strategies of franchisors of developed countries into foreign countries with Brazilian counterparts. Were there significant differences? An exploratory study was conducted with 16 international franchisors operating in Brazil and 31 Brazilian franchisors operating abroad. The results show that international franchisors operating abroad prefer to use a subsidiary in the destination country. At the same time, this strategy is little used by Brazilian franchisors, which prefer the strategy of direct franchises. For data collection, 47 directors or managers of the international expansion of Brazilian companies and the expansion directors of the international companies which operates in Brazil were interviewed. Although more expensive, the subsidiary in the target country offers greater control over the expansion of business reducing the problems caused by the distance of the country of origin. For the management of franchisors, this paper points out that the subsidiary is a natural evolution of entry and operation mode when it is desired or it is needed to control the expansion of networks in other countries. Thus, managers of franchisors in emerging countries should carefully examine the subsidiary option in the target country when their company considers accelerating international growth.

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Author Biographies

Helder de Souza Aguiar, Universidade Anhembi-Morumbi - UAM, São Paulo, SP, Brazil

Master’s Degree of Science from the Business School at the Centro Universitário da FEI (FEI-SP). Doctorate student in Business Administration from the Business School at the Universidade de São Paulo (USP). Avenida Luciano Gualberto, 908, Sl E111, Cidade Universitária, São Paulo – SP – Brasil – CEP 05508-010 E-mail: helderaguiar@usp.br

Marcos Roberto Luppe, Escola de Artes, Ciências e Humanidades da Universidade de São Paulo, EACH/USP, SP, São Paulo, Brazil

Doctor of Philosophy from the School of Economics, Business Administration and Accounting at the Universidade de São Paulo (USP). Doutor professor at the Marketing Department at the Universidade de São Paulo (USP). Rua Arlindo Béttio, 1000 Sala 352H - Jardim Keralux, São Paulo – SP-Brasil - CEP 03828-000  E-mail: mrluppe@usp.br

 

Paulo Tromboni de Souza Nascimento, Escola de Artes, Ciências e Humanidades da Universidade de São Paulo, EACH/USP, SP, São Paulo, Brazil

Doctor of Philosophy from the School of Economics, Business Administration and Accounting at the Universidade de São Paulo (USP). Associate professor at the Business Administration Department at the Universidade de São Paulo (USP). Avenida Luciano Gualberto, 908, Sala E111, Cidade Universitária, São Paulo – SP – Brasil – CEP 05508-010 E-mail: tromboni@usp.br

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Published

2017-11-11

How to Cite

Aguiar, H. de S., Luppe, M. R., & Nascimento, P. T. de S. (2017). Brazilian franchisor: Entry and operation of internationalized franchise. Internext - International Business and Management Review, 12(3), 16–30. https://doi.org/10.18568/1980-4865.12316-30

Issue

Vol. 12 No. 3 (2017): September/December

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