Journal of Distribution Science (유통과학연구)

Korea Distribution Science Association (한국유통과학회)
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Franchising for Global Distribution: A Systematic Review

  • Received : 2023.08.16
  • Accepted : 2023.10.05
  • Published : 2023.10.30
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Abstract

Purpose: The purpose of this study is to explore areas that have been studied extensively in previous studies related to franchising as a platform for global distribution. Furthermore, franchising is a strategic distribution method that gives entrepreneurs the opportunity to replicate an established business model. In addition, franchisees benefit from the use of established branding and receive support from the franchisor. Research design, data, and methodology: This study used the Preferred Reporting Items Systematics Review and Meta-Analyses (PRISMA) method to analyse data from 2003 to 2023 in the Web of Science and Scopus databases. Results: A total of 79 articles were identified and analysed to see trends and related themes such as product distribution, business distribution, business strategy, emerging market, and franchising relationship. Also, publication trends by year related to franchises are also presented. Conclusions: Overall, the research trend related to franchising as a global distribution is well seen, and every year, many researchers begin to explore the topic of franchising as a method of distribution that can be explored from various aspects either quantitatively or qualitatively. Lastly, limitations and recommendations are made to provide guidance for future studies related to the topic broadly and deeply in enriching the findings.

Keywords

1. Introduction

Franchising is a popular and successful method of business distribution either in domestic or international markets. It entails a business owner, which referred to the franchisor; giving the franchisee the authority to replicate their successful business model while using a recognised brand name (Abd Aziz et al., 2021; Abd Aziz et al., 2022). Both parties gain from this arrangement as the franchisor may flourish their business quickly without incurring substantial investments while the franchisee has access to a tried-and-true business model, assistance, and a well-known brand (Abdul Ghani et al., 2022; Rosado-Serrano & Navarro-Garcia, 2023).

In local markets, franchising makes it easier for businesses to expand into new areas and communities rather than through more conventional means. Local franchisees contribute their understanding of regional markets, cultural habits and customer preferences, which can help in modifying the company's model to succeed in various places (Abd Aziz et al., 2021). A measure of standardisation is made possible by the franchise model across all locations, assuring a consistent customer satisfaction and product or service quality. This standardisation, combined with local knowledge, fosters the consumer loyalty and brand trust, that supports the company's domestic market long-term growth (Nyadzayo et al., 2017).

In addition, franchising is a well-known method for business growth and distribution in the global market. Franchisors can overcome several obstacles, including language barriers, complicated legal issues and cultural differences, by working with local business owners (Baena, 2015; Rosado-Serrano, 2017).

On the other hand, franchisees have a comprehensive understanding the international market, including consumer behavior, distribution methods and legal requirements, which significantly lowers the franchisor's risk and uncertainty (Barim & Salar, 2014). As claimed by Michaek (2022), when a franchise uses a well-known global brand, it gains a competitive advantage and attracts customer who are already familiar with the goods or services. This strategy often accelerates market entry and distribution, allowing the franchisors to enter foreign markets more quickly and effectively than starting from scratch.

As highlighted by Nyadzayo et al. (2015), whether growing a firm locally or globally, franchising is a flexible and effective method. The franchise model exploit each party's strengths, providing franchisees with a rapid distribution plan and franchisees with proven business models and well-known brands (Nijmeijer et al., 2014). As long as both parties keep the lines of communication open, adhere to the terms of the franchise agreement, and uphold brand standards, franchising can be a mutually beneficial and effective method for a long-term business distribution in multiple markets (Michaek, 2022).

2. Literature Review

2.1. The Development of Global Franchising

Since more than a decade ago, a significant portion of the scholarly literature has been devoted to explaining the spectacular distribution of franchising as a route of entrance. According to Aliouche and Schlentrich (2011), franchise companies were increasingly seen as using international distribution as a key tactic to increase the number of their stores in foreign markets. Furthermore, Choo et al. (2007) explained that fast food outlets from the U.S. market in particular started expanding internationally in the early 1970s. Later, prominent American brands like McDonald's, Burger King, Pizza Hut, and Kentucky Fried Chicken became regular sights in all the region's cities, this tendency kept growing in the East Asia region. Additionally, the growth of the global services industry has highlighted franchising as a key tactic for market entry and global distribution (Petersen & Welch, 2000).

Hoffman and Preble (2004) highlighted that franchise associations represented a sizable franchise sector in countries with sizable middle- to high-income economies in close to one-fourth of the world's countries. Meanwhile, franchising firm's choice of distribution and entry technique are significantly influenced by its experience in international business (Zhu et al., 2011). As claimed by Park and Sternquist (2008), franchising and wholly owned subsidiaries are the most popular distribution strategies that were used by international business owners. Franchising enables a special commercial connection in which the franchisors grant licenses to their franchisees, that are advantageous for both sides.

As their franchising systems matured and become saturated in their native countries, franchising companies will also start to grow internationally (Johanson & Vahlne, 1990; Welsh et al., 2006). Doherty (2009), discovered that franchisors entered the global market through the strategic franchise partner selection process, in which they are very methodical and cautious while looking for franchisees to work with. In addition, Brookes (2014) emphasised that franchisors and franchisees must determine how closely their respective organisations' ambitions, beliefs, and objectives match up. These are so complementing as the aspirations for both parties for growth and distribution abroad.

As they can gained more international experiences, (Preble & Hoffman, 2006) supported that franchisors can choose any one of the three strategic approaches within franchising (i.e., direct franchising, master franchising, and area development franchise) for distribution and market entry. However, it must depend on the franchisor's objectives and the market's growth. Evans et al. (2008) explained that both internal (such as resources, organisational culture, expertise, and management interest) and external (such as economic, social, cultural, and political factors) drivers of international distribution. Additionally, franchise businesses are likely to uptake a strategic approach and are actively aiming to penetrate foreign markets through a planned process. According to Forte and Carvalho (2013), market variables ultimately influence the decision to choose a market, which is then followed by the selection of a strategic partner.

2.2. Franchising as a Mode of Entry

According to Baena and Cervino (2012), the entrance method refers to the institutional arrangement chosen by a company to organise and carry out business transactions. This choice affects the firm's capacity to create and carry out strategies in the global market. Additionally, it assesses the degree of management over corporate operations as well as how successful they are at surviving in the global marketplace (Baena et al., 2012).

The majority of earlier literature also distinguished between equity-based and non-equity-based entry strategies into the global market. The purchase of ownership of the businesses involved, including joint ventures and fully owned subsidiaries, is a component of equity models. Furthermore, nonequity routes of entrance do not entail ownership but rather exporting with certain types of agreements, such as franchising or licensing (Khemakhem, 2010; Pan & Tse, 2000). Vaishnav and Altinay (2009) described that franchising is a nonequity way of entry in which a franchisee and franchisor enter into an agreement allowing the latter to utilise the former's patents, goodwill, ideas, or trademarks. As a result, the franchisee will pay the franchisor royalties.

As claimed by Welch et al. (2007), there are a number of strategies that franchisors frequently used in expanding their businesses into foreign markets when using franchising as a mode of distribution, including (i) direct franchising; (ii) master franchising; and (iii) wholly-owned subsidiaries. Firstly, direct franchising is the willingness of a company to expand its business into a global market through franchising by creating an agreement with a local agent (franchisee), which grants them the right to use a business trademark in exchange for paying a royalty fee (Sadovnikova et al., 2023; Sultan & Saleem, 2018). By employing the direct franchising technique, franchisors have the power to directly supervise every one of their branches abroad. Additionally, franchisors have the same obligations and responsibilities abroad as they do at home. By implementing direct franchising during the early stages of development, franchisors are able to swiftly react to any arising adjustments as well as obtain a speedy response from the global market (Welch et al., 2007, 2018).

The second approach employed by franchisors to expand their franchise locations into overseas markets is master franchising. In addition, master franchising describes a legal arrangement between a franchisor and a separately owned sub franchisor (referred to as a master franchisee) in building a specified number of outlets in exchange for the exclusive use of a business model as a trademark for a period in a particular geographic area. Thus, master franchisors can decide whether to launch their own stores or train their own sub franchisees (Alon, 2006; Bretas & Alon, 2021; Gamet-Pol, 1997).

According to Lozada et al. (2014), master franchising predominates in two situations: (i) when a new franchise outlet is being launched in the local market and then franchisors decide to rapidly expand their locations; and (ii) when the franchisor decides to establish the territorial franchises through an individual or a single business that will then be responsible for creating sub-franchisee. Master franchisee must also be aware of the distinctions between a contractual obligation to build additional locations, business practices that might involve distribution ahead of schedule or financial realities that might require such distribution, and opportunities in opening new franchise outlet locations based on the use of business judgment and available funding (Bretas & Ilan, 2021; Jell-Ojobor et al., 2022 Ramdan et al., 2022). Moreover, Seshachalam et al. (2017) highlighted that master franchising is a common method for extending franchise outlets over vast geographic regions, including an entire state, country, or even international borders. Master franchisors typically create smaller units of franchisees and then govern them as a franchisor.

Wholly owned subsidiaries are another method of distribution in franchising. As defined by Horská (2014), wholly-owned subsidiaries are those in which the parent firm owns a subsidiary entirely. In actuality, it means that the parent business owns the majority of the shares and has complete control over the assets. Additionally, there are two primary methods for establishing foreign wholly-owned subsidiaries: (i) greenfield venture, where a company will enter a new international market by creating a new operation and legal entity when markets are not overly competitive; and (ii) acquisition, where a company will buy another company in that market to enter it directly (Brouthers & Brouthers, 2000).

3. Methodology

3.1. Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA)

This study uses the Preferred Reporting for Systematic Review and Meta-Analysis (PRISMA) method in order to obtain, filter and analyse all previous research related to the topic of franchising and distribution for global distribution as suggested by Stewart et al. (2015). PRISMA is primarily concerned with reporting reviews that assessed the effects of interventions, but it can served as a foundation for reporting systematic reviews with goals other than assessing interventions (Sohrabi et al., 2021; Nurhanie et al., 2022; Razak et al., 2022; Yahaya et al., 2022).

According to Moher et al. (2009), the PRISMA method emphasises the researcher to conduct systematic and thorough research when analysing all previous research articles. Additionally, Selcuk (2019) supported that PRISMA helps to find, evaluate, and summarised information from multiple studies to answer research questions or constraints related to the same setting. Furthermore, Shamseer et al. (2015) explained that systematic review is important for several reasons, including the following: (i) it allows systematic reviewers to plan carefully and anticipate problems that may occur; (ii) it explicitly allows a review of the documentation of what is planned before starting the review, and this will allow others to make comparisons between the protocol and the complete review, to replicate the review method if necessary, and to evaluate the validity of the proposed method; (iii) it prevents illogical decision making for inclusion criteria and data extraction; and (4) reduce research duplication.

3.2. Sources of Database

Both Web of Science (WoS) and Scopus, two important online databases of scholarly journals, serve as the primary sources for the present article. According to Falagas et al. (2008), the progression of the electronic age has led to the establishment of a large number of medical databases that are accessible via the World Wide Web. These databases provide users with the capacity to do citation analysis as well as search functions that are tailored to certain areas of research. In addition, WoS and Scopus are the broadest and publicly available databases that contain a variety of academic subjects and are frequently used for conducting literature searches (Guz, 2009; Ramdan et al., 2022).

Scopus is a vast database that contains citations and abstracts from publications in a variety of fields, including books, literary journals, commerce journals, patent records, and conference publications. This database contains tools that can be utilised to detect, analyse, and visualise the results of a search. The Scopus database was first made available to the public in November 2004, and it is currently the most comprehensive collection of abstracts and collections available online. It contains more than 21,500 titles from over 5,000 different international publishers. In addition, the Scopus database offers the most exhaustive survey of the outcomes of research all over the world in the fields of science, technology, medicine, social science, as well as the arts and humanities (Boyle & Sherma, 2006). It was stated that there were more than 25,100 articles from over 5000 foreign publications as of the month of January in the year 2020. Scopus provides an overview of the most extensive study ever conducted, which covers fields such as medicine, science, technology, the humanities, and the social arts science. The Elsevier publication year is 2020.

On the other hand, the WoS database search allows user to search through roughly 11,400 journals in over 45 different languages, spanning the domains of science, social science, as well as the arts and humanities, in order to locate the most pertinent high-quality research. In addition to this, it makes use of citation references to construct links between pertinent notes and capitalises on the subjectmatter relationships that exist between publications written by knowledgeable academics who specialise in particular topics. Joshi (2016) found that when WoS is compared to Scopus, the former has more comprehensive reporting that dates all the way back to 1990 and it has the majority of its articles authored in English. According to Web of Science (2020), the WoS database contains 21,294 articles. These articles cover a variety of subject areas, including the arts and humanities, social sciences, and natural sciences.

3.3. Systematic Review Process

For this study, four stages have been implemented, namely (i) introduction; (ii) screening; (iii) eligibility and (iv) inclusion of research articles involved. The identification procedure is broken down into several parts by using keywords entered into the process of searching the WoS and Scopus databases for articles related to the first stage of the process, which is identification. The keywords for the search used are (("franchising" OR "franchise") AND ("international distribution" OR "expand" OR "global penetration")). This is based on past research and thesaurus entries for terms that are synonymous with each other. A total of 83 articles were found in the WoS database, while a total of 91 articles were found in the Scopus database.

In the second stage, a comprehensive screening was carried out, and the results showed that 31 identical articles were removed. Next, screening continued where there were still 143 articles that were eligible to continue evaluation after removing articles that were duplicated in both databases. In addition, researchers also continued screening by removing 20 files due to the types such as conference proceeding, book chapter, non-English articles, nonpublished articles and review articles). In the third stage, 44 articles not related to the focus of the review were also removed because they were found not to meet the qualifications. Finally, a total of 79 final articles were identified and considered for analysis.

The search for articles focused on articles that have been published within 20 years, starting around 2003 until 2023. This is because the era of franchise development and distribution in most countries started around that period and most scholars started researching about it. It is important for researchers to limit the search to only the desired concepts and leave any irrelevant publications after the screening process is complete.

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Figure 1: Flow of the Systematic Review

4. Analysis and Discussion

Figure 2 showed the trends of publication where it shows as many as 83 articles have been identified in the WoS database, while as many as 91 articles have been found in the Scopus database. It is shown, the publication trend is a little low starting in 2003, and it is seen to increase slowly in the following year. The number of articles is seeming to be getting higher around 2008 and started to decrease slightly in the following years. However, the published articles for each year remained the same as the franchise industry in most countries. Thus, scholars from various countries have begun to explore this franchise topic as a study.

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Figure 2: Trend of Publication

4.1. Analysis on Field of Study Covered in WOS and Scopus Databases

Figure 3 shows the distribution of themes based on the analysis that has been made. There are 5 themes that have been discovered, namely: (i) product distribution; (ii) business distribution; (iii) business strategy; (iv) emerging markets; and (v) franchising relationship. There are 33 articles related to business distribution where it is related to the franchisor developing his business model in the international market to strengthen the distribution of his business system network.

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Figure 3: Field of Research Studies

For product distribution, there are 26 articles that have been identified where it is an important aspect of franchising that involves the distribution of physical goods such as quick service restaurants. For business strategy, there are 18 related articles. A franchise growth strategy is essential to achieving mutual success between the franchisor and the franchisee. This will be achieved through the utilization of a strong brand identity and a comprehensive franchise distribution system.

Furthermore, a total of 13 studies related to emerging markets highlighted the rapid development of franchisors in entering the global market to distribute their products and businesses. Finally, there are 10 articles related to franchising relationship. It outlines the complex interaction between franchisor and franchisee and also looks at what drives both parties to succeed in the market. Additionally, it also emphasises the importance of teamwork and ensuring franchise enterprises are viable for the long term.

4.1.1. Product Distribution

Product distribution plays an important role in the field of franchising, serving as a fundamental element of business strategy that ensures the maintenance of consistency and uniformity across several franchise establishment (Velentzas & Broni, 2013). To effectively provide goods and supplies to its franchisees, the franchisor must establish a clear product distribution infrastructure. A centralized product distribution network is usually used in the franchising context. This occurs when the franchisor typically assumes responsibility for operating the product distribution center. This technique offers several advantages, including increased purchasing power due to bulk purchasing, improved inventory management efficiency, and uniform product quality. Distribution center management allows franchise owners to effectively enforce brand integrity, monitor inventory levels, and engage in negotiations with suppliers to obtain more favorable prices.

As claimed by Bui et al. (2021), this ultimately results in cost savings for both franchisors and franchisees. According to Bui (2020), consistency in product distribution across franchise sites fosters a sense of trust and loyalty among customers, as they can expect a consistent level of quality and experience regardless of the store they visit. Abd Aziz et al. (2020) highlighted that the inclusion of a resilient supply chain and logistics plan plays an important role in the implementation of an effective product distribution strategy in the franchising context. To maintain uninterrupted operations and meet customer demand, franchise establishments must receive timely delivery of orders from manufacturers. To improve the efficiency of the distribution process, franchisors are required to implement a sophisticated inventory management system, as well as establish cooperation with respected shipping and logistics partners. In addition, to ensure that franchisees remain informed of any improvements or modifications, it is important to maintain frequent communication and provide comprehensive training on the distribution operation (Velentzas & Broni, 2013).

As highlighted by Mutumba et al. (2016), the establishment of a prosperous franchise network can be achieved through the cultivation of cooperative and transparent relationships between franchisors and franchisees. Maintaining brand consistency, achieving cost savings, and promoting overall success is highly dependent on effective product distribution management in a franchise context (Lee et al., 2021). Abd Latif et al. (2021) described that a franchisee can acquire something and deliver a consistent experience to customers through the use of a well-organised supply chain and continuous assistance from the franchisor. In the context of franchise operations, the franchisor must establish a network of reliable and prosperous franchise locations through the implementation of strict quality control measures and a comprehensive training program. As supported by Joharianzadeh et al. (2015), this will ensure consumers consistently experience a uniform level of service and satisfaction across all franchise stores.

4.1.2. Business Distribution

Based on Iyer et al. (2015), franchising offers a robust business distribution model for its franchisees to replicate their achievements in different geographic areas, thus reducing risk and capital requirements. This makes franchising an attractive option for business distribution. Furthermore, Anand (2023) emphasised that franchisees gain advantages from business distribution models that have been developed by business owners because they are proven to be successful and fully supported.

Meanwhile, Wu (2015) described that franchisors can effectively expand their reach to a larger audience through systematic and efficient business distribution arrangements. Additionally, by delegating day-to-day management responsibilities to franchisees, franchisors can allocate their focus toward strategic planning, marketing efforts, and continuous product improvement. Wu (2015) also added that franchising is a viable and cost-effective business distribution for corporate growth, as it facilitates market development and promotes economic progress in many locations through its cooperation and adaptation.

It is important for companies considering the use of a franchise business distribution model to maintain consistent standards of quality, brand identity and customer service as they intend to expand their business. To ensure the franchisee's understanding and compliance to the basic concepts and standards set by the franchisor, it is important to implement an effective communication strategy and a comprehensive training program (Abdul Ghani et al., 2022).

Furthermore, careful screening of potential franchisees may contribute to the establishment of a good business distribution model where franchisors tend to choose dedicated and skilled partners (Abd Aziz et al., 2022; Abd Aziz et al., 2022).

4.1.3. Business Strategy

Ghosh (2017) explained that the use of franchise business model as an effective distribution strategy can produce great benefits for both franchisors and franchisees. This particular technique facilitates the franchisor's brand distribution and their entry into previously untapped markets, while minimizing the need for large initial investments. In addition, Abdul Ghani et al. (2021) provided an explanation that highlights the potential of franchisors to leverage their expertise and established business strategies by giving franchisees the privilege to operate under their well-known brands. This arrangement increases the prospects of success for the franchise. Franchising is a strategic approach used by businesses to facilitate rapid growth and increase scalability (Gilis & Castrogiovanni, 2012). This allows franchisors to allocate their resources towards core business activities, such as product enhancements and marketing strategies.

The relationship between franchisor and franchisee is mutually beneficial and reduces the risks associated with starting a new business, as franchisees gain access to wellknown brands, proven operating processes and ongoing support (Inoue et al., 2014; Nijmeijer et al., 2014).To ensure alignment with brand values and objectives, skilled franchisors carefully select and direct their franchisees. According to Roh and Yoon (2009), this creates mutually beneficial and financially beneficial cooperation between the parties involved.

The use of a franchise model offers an attractive franchise opportunity to enter a business sector with an increased probability of success. Franchisees have the opportunity to take advantage of a proven and prosperous company model, instead of starting a business from its inception. According to Lucas Resende Melo et al. (2021), the provision of initial training and ongoing support by franchisors plays an important role in enabling franchisees to manage their business effectively, thus contributing significant value to their operations.

Additionally, franchisees often experience beneficial cost reductions on supplies and equipment due to the franchise network's collective purchasing power strategy. Membership in a reputable brand also fosters consumer loyalty and trust, resulting in a wider customer base than typical companies (Nyadzayo et al., 2015). Abou Kamar and Alsetoohy (2021) highlighted that the franchise business distribution model provides an attractive and intelligent option to individuals looking for a business venture that provides a greater likelihood of success and solid brand support.

4.1.4. Emerging Market

Alon et al. (2020) claimed that the emergence of a market in the franchise industry offers promising opportunities for both local business owners and global brands looking to expand their market presence. The characteristics that distinguish this market are usually observed in developing countries or regions experiencing rapid economic growth (Baena, 2012). Franchising has been identified as an efficient distribution strategy due to its ability to leverage local experience, reduce operational risk, and leverage established consumer trust (Nikulin & Shatalov, 2013). This can be attributed to his ability to apply knowledge and skills in a particular locality.

According to Asare et al. (2010), local entrepreneurs can take advantage of the strong brand reputation and proven business system offered by franchisors. Likewise, global companies can enter new markets by partnering with franchisees who possess the necessary expertise and motivation. To effectively penetrate this potentially profitable market, it is important to efficiently navigate challenges such as the nuances of indigenous culture, the intricacies of the local regulatory framework, and the adaptation of business strategies to align with local customer preferences (Abd Aziz et al., 2022; Abd Aziz et al., 2021).

Currently, there is a significant increase in demand for franchises across several industries in Asian countries, such as quick service restaurants, grocery stores, educational institutions, healthcare facilities and hospitality firms as claimed by Abd Aziz et al.(2019). As these regions' economies grow, the expectations of their consumers, who are becoming more discerning, also grow. These consumers are looking for products and services that offer high quality and convenience. A franchise business strategy is beneficial for both local business owners and global franchisors (Kelepouris, 2023).

On the other hand, it also gives foreign franchisors the opportunity to adapt their offers to the preferences and tastes of local consumers (Abdul Ghani et al., 2022). To achieve success in a dynamic market, franchisors must embrace a flexible approach that emphasises cultivating strong relationships with their franchisees and allocating resources toward comprehensive training and ongoing support (Sanny et al., 2017). An awareness of the unique challenges and possibilities presented by emerging markets is essential for franchisors to effectively capitalize on the region's enormous potential (Inoue et al., 2014; Roh & Yoon, 2009).

4.1.5. Franchising Relationship

According to Navarro and Puig (2018), franchising has emerged as a powerful strategy for worldwide distribution because of the mutually beneficial relationships fostered between franchisors and franchisees. According to Hanafiah et al. (2023), the franchise business distribution model requires the franchisor to provide independent franchisees with a license to use its brand, operating system and expertise, on the condition that they run their own enterprise under a predetermined brand name. One of the main advantages of franchising for global distribution is the ability to take advantage of local market expertise and cultural nuances (Alon et al., 2020).

Varotto and Parente (2018) argued that businesses have the ability to adapt their products and services to align with the specific needs and preferences of local customers. This can be achieved through strategic partnerships with regional franchisees who have a thorough understanding of the target market. The implementation of a localized approach serves to increase brand appeal and at the same time foster stronger bonds between franchisees and local communities. This, in turn, leads to higher brand loyalty and greater presence in the market.

Furthermore, Baena (2012) asserted that franchise arrangements provide firms with a quick and cost-effective approach to business distribution into global markets. According to Inoue et al. (2014), the franchisor has the ability to build a local presence efficiently by using the financial resources and capital of the franchisee, compared to the more complicated, expensive and dangerous process of establishing a wholly owned subsidiary, which may be hindered by legal and regulatory barriers. Koklu and Ozseven (2021) explained that the franchisee's participation in the company eases the franchisor's financial burden, allowing them to focus on refining their core business strategy and ensuring quality control across the franchise network.

Ishak and Bohari (2016) claimed that to achieve successful business distribution through franchising, it is important to engage in careful planning, effective communication, and unwavering support from the franchisor. According to Nyadzayo et al. (2014), conducting a comprehensive assessment of potential franchisees is important for franchisors to confirm their commitment to the franchise system and business strategy, thus maintaining brand standards. To ensure a cohesive brand identity and operational efficiency across all franchise locations, franchisors must provide comprehensive training, ongoing support, and frequent communication. A strong relationship between franchisor and franchisee has been identified as a way for businesses to take full advantage of opportunities to increase their brand presence internationally (Altinay et al., 2014; Grewal et al., 2011).

5. Conclusion, Limitation and Future Research Direction

In brief, franchising is an influential strategy for business distribution worldwide. This method of business distribution includes a dynamic interplay between entrepreneurial efforts and established brand effectiveness. The entity's success in achieving rapid market distribution is underscored by its ability to overcome cultural and geographic barriers while leveraging knowledge and natural resources.

The practice of franchising empowers the franchisor and the franchisee, where it fosters mutually beneficial partnerships and stimulates economic distribution and employment opportunities worldwide. In pursuit of global expansion, many firms are increasingly turning to franchising as a viable strategy. This approach presents a flexible model that effectively combines standardized procedures with adaptability, allowing for diverse user requests. To achieve brand consistency and operational excellence in franchise network distribution, achieving success depends on the implementation of accurate planning, comprehensive training, and ongoing support.

However, this study also has some limitations. Firstly, this study only looks at articles from two databases only, namely WoS and Scopus where the selection of articles may not cover other articles. Second, the scope of this study is only limited to a few perspectives related to distribution, thus it only produces related themes. Thus, future research should consider examining several perspectives related to franchising as a mechanism to spread products and brands, especially from the point of view of franchisees, given their important contribution to growth. Future researchers are also suggested to further expand the search for related articles by diversifying data-based sources. In addition, it is also suggested to use other review methods such as bibliometric analysis to obtain more diverse results.

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