Over the last five years, U.S. franchisors have experienced an economic rollercoaster marked by an exceptional recovery from the pandemic and, more recently, a period of economic challenges due to inflation, labor shortages, rising interest rates, and tariffs. Notwithstanding these fluctuations, over the last several decades franchising has grown dramatically as an international expansion strategy with many U.S. franchisors benefiting greatly from their expansion into foreign markets. Overseas expansion, however, includes significant risks that may jeopardize the substantial monetary and sweat equity investments that franchisors and their foreign franchisees make as part of this growth.
This article explores the risks that commonly factor in failed overseas expansions.
Read “Why U.S. Franchisors’ Expansions Overseas Fail,” co-authored by Alan R. Greenfield, published by the American Bar Association Forum on Franchising.