Unlike conventional licensing, the franchisor licenses a business system to an independent franchisee in a target foreign country. The franchisee carries on a business under the franchisor’s trade name and in accordance with policies and practices laid down by the franchise agreements. Holiday Inn, McDonald’s, Kentucky Fried Chicken, Avis and many other US firms have become household names in scores of countries. The classic international franchisor, of course is Coca Cola. International franchising has become, therefore, a powerful entry mode fore companies that have products and services that can be reproduced by independent franchisee.

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