The reality is that cultural and
social norms in developing countries may frustrate the
capacity of franchising to reach its full potential. It is
within the control of franchisors to develop concepts
and systems that accommodate that country’s cultural
and social norms and idiosyncrasies, but cultural and
social norms that do not recognize the need for standardization,
uniformity, and controls and compliance pose
real challenges for viable and effective franchising.
Change in this space is gradual and, until it occurs,
franchisors will operate primarily through companyowned
and -managed outlets rather than through
franchised outlets.