Question: 1. What steps should U.S.-based franchisors take when establishing outlets in foreign countries? 2. Describe the opportunities and the challenges franchisors face when entering emerging
2. Describe the opportunities and the challenges franchisors face when entering emerging markets such as India.
3. Use the Web as a resource to develop a list of at least five suggestions that will help new franchisors looking to establish outlets in India.
As franchisors have found wringing impressive growth rates from the domestic market increasingly difficult, they have begun to export their franchises to international markets, including those with developing economies. Indeed, franchising is ideally suited for developing economies because it allows people with limited business experience and financial resources to become part of an established business. India, with a population of more than1 billion people, is attracting the attention of franchisors across the globe. More than 750 franchisors now operate in India, where the franchising industry is growing at an annual rate of 30 percent. India’s middle class, which currently stands at 50 million, is expected to grow to 583 million by 2025, a growth rate that appeals to franchisors
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