Abstract
Franchising is gaining popularity as an important tool for international expansion. It benefits both the parties involved in franchising. The purpose of the paper is to highlight the importance of franchising and understand the factors that affect franchising decision of businesses. While a franchisor uses this tool as a method of distribution and international expansion, a franchisee uses it to reduce business risk. The factors affecting franchising decision differ for a franchisor and a franchisee. The franchisor looks at its decision of franchising with a more global angle through analysis of the global market and legal scenario, a franchisee has a local approach to make an investment ...