A Study of the Impact of Culture on International Business Format Franchising: The Case of Taiwan

Abstract

The focus of this research thesis is to examine the impact of culture on international franchising strategies adopted by American and Japanese international franchisors when entering Taiwan. Franchising has, over many decades, been demonstrated as a highly successfully means of engaging in commercial business operations. Franchising is a market related business method that is based on contractual arrangements that delineate responsibilities, decision rights and resources of the franchisor and franchisee. There are two recognised franchise systems comprising of the product/trade-name system and the business format franchise systems. In contrast to the product/trade-name system, the business format franchise system provides a complete and proven system of business operations and establishes an ongoing support relationship between franchisor and franchisees. In this thesis, the focus will be upon the business format franchise system. Franchising has expanded rapidly in domestic markets and also in the international marketplace. Franchisors have developed consumer confidence in their products/services and brand names through store design, recognisable arrangement of merchandise and high levels of service, which are consistent across franchise outlets. Franchisors provide customers with a range of quality-controlled options both in service industries and the consumer goods market.