This study examines the issues and challenges of international franchising from the perspective of
franchisees in an emerging market, Indonesia. Due to the popularity of restaurant franchising, this sector is the
focus of the present study. This study attempts to validate a similar study done in South Korea. Based on data
gathered from 85% of the US restaurant franchises operating in Indonesia, our results reveal that brand value is a
key component in franchise selection criteria as well as one of the success factors in running a franchise. The
findings justify a highly efficient franchise system as the most important factor in selecting US franchises. In
addition, cleanliness and high quality food are recognized as factors attributing to the success of US franchises.
Training is found to be needed in areas of service and food preparation in order to maintain the standards set by the
franchisors. In addition, a survey of local consumers discloses that they prefer to go to shopping malls to get food
from US franchises. The results of this study will provide important lessons for both international franchisees and
US franchisors.