Where to internationalise and why: Country selection by restaurant franchises

Abstract

This paper analyses the factors that influence the selection of markets, as well as the process developed in the first stages of internationalization of small and medium-sized franchises. A multiple case study in the restaurant sector in Spain is carried out. The analysis identifies market opportunity, physical and cultural distance, availability of optimal locations, and emotional factors as the main criteria in selecting countries. Regarding the process, most of companies initially follow an opportunistic approach, with the franchisee initiating the contact, evolving later to a strategic approach, with the company initiating the search for the partner in the selected country.