Diffusion of Franchise System Use in International Operations

The spread of “second generation” franchise system use from a predominantly US base is examined. The focus is on Australia as one of the major recipient countries. Australia has moved rapidly through a process of adoption and imitation of US companies′ franchise systems in the 1970s and 1980s. Having applied the franchise system in domestic operations, a number of Australian companies have now begun to develop an international thrust, including an interest in the US market.