As franchise systems mature in their domestic markets, franchisors wishing to expand their operations need to look to international markets. Amos (2001) believes franchisors must have a strategic plan that incorporates international opportunities as we move closer to a global marketplace and global economy. Despite government bodies in countries such as Malaysia and Singapore opening doors to franchising, a country's regulatory framework as well as the government's actions or inactions can foster or hinder franchise development in any nation. The aim of this study is to evaluate the numerous barriers to the internationalization of franchising, and qualify this in the context of franchising in the Kingdom of Saudi Arabia. The purpose is to explore possible entrepreneurial modes of entry for Australasian franchise systems into Saudi Arabia. After joining the World Trade Organization, Saudi Arabia has been identified as lucrative compared to other markets in the Middle East region. We specifically concentrate on the fast-food industry, as the business sectors experiencing the most franchise growth internationally are retail and restaurants (Hoffman & Preble, 2004).
Proceedings of Regional Frontiers of Entrepreneurship Research 2007: 4th International Australian Graduate School of Entrepreneurship (AGSE) Entrepreneurship Research Exchange, Brisbane, Queensland, Australia, 06-09 February 2007 / L. Murray Gillin (ed.),