The model development draws upon a number of earlier empirical studies, though some gaps in that research are filled through argument and discussion as might be expected in a conceptual paper. The benefit side seems clearer from previous studies. Notwithstanding, the paper provides an excellent discussion of the risk aspects of internationalization. Cultural distance is considered under the heading of perceived favorability of the external environment. This is the only external factor that explicitly is prefaced by ‘‘perceived,’’ which seems appropriate because cultural distance is at least partly in the mindset of the managers. In summary, both papers in Phase 1 provide a powerful foundation for the theory of international franchising. In particular, the Eroglu paper is important because it does seem to be the first comprehensive and full-fledged conceptual model of international franchising. It has become a well-justified classic, seminal article in this domain of the franchising literature.