Franchise Business in China

Franchising is one of the entry methods used by multinationals and foreign businesses to venture into new markets. A Multinational that is trying to enter the Chinese market will experience several pros and cons of the market. Factors in favor of franchising for any MNC are such that the market is favorable for franchises as many thrive in a ready market. Secondly, the market is not only ready but is a large target market. Thirdly, the Chinese have the investments needed to buy a franchise. Fourthly, the market has the necessary laws that support the establishment of franchises by foreign companies receiving importation and exportation licenses. However, there are numerous factors unfavorable for franchising. The major problem an MNC will face is the challenges linked to the quality control systems and laws in the nation. This is an auxiliary complication from China's ambiguity in franchising in...
[ View Full Essay]