In 1997, 50 percent of KFC's were located outside of the United States. While 364 new restaurants were opened outside of the United States in 1997, only 12 new restaurants were added to the US system. Most of KFC's international operation was through franchises, though some restaurants were licensed to operators or jointly operated with a local partner. Expansion through franchising was an important strategy for penetrating international markets, because franchises were owned and operated by local entrepreneurs with a deeper understanding of a local language, culture and customs, as well as local law , financial markets, and marketing characteristics.