Franchising And Chain Store Mode Comparison Research

Franchising, as the main market-expanding mode of International Franchisors, has greatly helped franchising enterprises to build up their global franchising system. However, we also notice that International Franchisors in some way expand their target market through chain store mode, which is another widely used expanding mode, different from the former one in some way. When it happened unexpectedly last year that a lot of foreign enterprises began to repossess their former franchising stores and turned them into chain stores, more attention has been paid to comparison of the two modes. Combined with McDonald franchising strategy analysis, we made a further research on the difference between franchising and chain stores. We find that enterprises' choosing chain store mode as the main one in target market at earlier time, largely contributed to chain store's advantage over franchising in some respect. However this finding doesn't mean which one is better. And we still maintain that two of them, franchising and chain store are both useful tools when expanding target market by International Franchisors. And with the development of franchisors, franchising will become the mainstream mode sometime in future.