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Franchises Eye International Expansion

By Kevin Adler
April 26, 2011

With many U.S. franchise markets saturated and capital for new franchisees difficult to obtain, franchisors have increased their efforts to identify the most promising non-U.S. markets for growth. But international franchising carries numerous complications that must be addressed by a franchisor's business and legal strategy, said several experts at the 2011 International Franchise Expo. The Expo was sponsored by the International Franchise Association in Washington, DC, on April 1-3.

“Does the future of U.S. franchising lie outside the U.S.? One can make an argument that it does,” said Philip F. Zeidman, senior partner, DLA Piper LLP.

“As globalization has taken hold over the last 20 years, international growth has become a 'must' for any company seeking high rates of sustained future growth,” said David Pepper, senior vice president, Choice Hotels International, which has nearly 1,100 non-U.S. franchised units.

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