FOREIGN ECONOMIC AFFAIRS INTERNATIONALIZATION BY FRANCHISING OPERATIONS
Author(s)Lorena POPESCU DUDUIALĂ
Economic theory. Demography
Commercial geography. Economic geography
Economics as a science
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AbstractNowadays, franchise is the way to do business at the fastest pace in the world. More than 600,000 franchise business activities are spread all over the American continent generating sales of one trillion dollars. Over 40% of the US retail trade in products and services are achieved by franchises. A new franchise opens somewhere in the US every 12 minutes. Franchise is surely the success story of this decade. Romania is represented on this list by 171 franchise networks, with brands originating from 21 countries and the turnover was 800,000,000 Euros at the end of 2008, enevenly distributed by sectors of activity. It is interesting to note that although the industry networks are only 3.5% oof th total networks, they contribute with 43.6% in the turnover obtained in franchise system. Therefore, franchising can and should be a successful attempt both for the franchised and franchisers, for those who are driven by ethics, passion, vision and innovation, for those who want to franchise or develop the franchise network.