Impact, Consequences, and Future of Fast-Food Business Franchising - Thesis Example

In particular, how has Europe responded to the growing popularity of franchise businesses?   Does the franchise system represent the standard for the future of European entrepreneurial activities or will franchise systems fail to achieve enduring business interest as a strategic growth option?

          These and other questions will be considered within this thesis.  This project begins with an introduction to the general topic of franchising.  Relevant terms are defined, the research questions are outlined, the method of literature collection is described and various franchise systems are further outlined and discussed.  In Chapter 2, the review offers a description of the general history of the franchise business model.  Franchising is formally recognized as an American invention that has successfully been exported around the world.  Specifically, the example of fast food franchising serves as a case study to demonstrate the advantages and disadvantages derived from the entrepreneurial decision to engage in a franchise as the fast food industry is the one industry that has seen the most growth through franchising internationally. 

This thesis focuses on the development of the McDonald’s franchise system.  McDonald’s was one of the first companies in the world to develop a successful formal franchise system outside of the United States.  With over 20,000 locations worldwide, McDonald’s has more franchisee units than any other franchisor, making it the most quantitatively successful franchise in the world.  However, the McDonald’s franchise system was not initially successful and an analysis of the development of the business model helps to demonstrate the advantages and disadvantages associated with the franchise system.

In Chapter 3, the literature review focuses on the development of franchising within Europe.  Statistics on the growth of franchises in Europe are limited as few academic studies have focused on their development.  However, despite initial cultural concerns, the fast food franchising industry is demonstrated to be one of the fastest-growing franchise business sectors in Europe.