A comparative study of two Thai franchises in international expansion

This paper is an exploratory study examining the determinants influencing the ability of Thai franchisors to successfully expand internationally; its findings are intended to contribute to franchising theory and practice. Cross-case analysis was designed, using two internationalised franchisors that are recipients of the Thailand Franchise Quality Award (TFQA). Franchisors from the education and service sectors were purposely selected as the sample cases. In-depth interviews with the executives involved in international markets and document analysis were conducted to triangulate the findings. Findings indicate that system quality, brand name, network communication, local environments, the franchisor's activities (leadership qualities and the ability to handle stressful situations), and the franchisee selection procedure are all positively associated with success in domestic and international business expansion. Differences in price bonding, type of franchising agreement, geographic distance and cultural difference as concerns with the franchising expansion decision are discussed in this study. A platform for further study is also provided.