Comparacion del sistema de franquicia entre china y japon

Franchise Laws and Regulations in China and Japan
International franchising is a strategy used by large and small companies to expand their brand into foreign markets which decreases the risk of depending on a home country with increasing competition. International franchising also creates revenue that exceeds what a company would make by staying in its domestic region. By expanding tointernational countries the franchise globalizes and ultimately gains new consumers and promotes the economy in the countries they choose to operate in. International franchising is a win-win situation for all three of the major parties involved; the franchise, foreign consumers and the foreign economy.
Some major American companies such as Kentucky Fried Chicken, McDonalds, Curves and 7-Eleven alloperate in foreign countries creating more revenue than the United States market has offered. The main reason for the success of globalization for these companies and few hundred other companies is because there is less competition which allows American companies to dominate. These American companies however offer different products in each of their foreign markets to better serve their target segmentsand overall target market. Research and development becomes a huge expense for the franchise in addition to the total investment of time required. Laws and regulations vary from country to country from years operating business requirements, the amount of franchises allowed to open and the training process are all regulated by the foreign governments. As globalization expands the continent of Asiais becoming a global hot spot. Countries such as China and Japan were once seen as traditional, advancing and in some areas still developing and decades later more and more American companies are building franchises in both countries.
China’s Franchise History
Yum! Brands was the first foreign fast food company to operate in China in 1987 beginning with a Kentucky Fried Chicken. Seven yearslater in 1994, PepsiCo which owned the Yum! Brand at that time invested $400 million dollars for an expansion of 200 locations all across China. The McDonalds chain is the next dominating force in China with less than half as many franchises. In present day China there are over 1,000 McDonald franchises, whereas there are more than 3,200 Kentucky Fried Chicken franchises in over 700 cities acrossChina. At the moment, Yum! Brands which operates KFC, Taco Bell and Pizza Hut is planning to expand even more within China with goals to make China its most profitable market. Yum! Brands has created more profit overseas than in America in the past years and plans on continuing to make billions on the Chinese Market. The ultimate goal is to open up 20,000 various locations of KFC, A&W, LongJohn Silvers, Pizza Hut and Taco Bell. The Yum! Brand menus are bilingual and consist of standard American items in addition to special Chinese entrees. The Chinese menu consists of fried squid, rice dishes, chicken kebabs, fish nuggets and the classic snackers for KFC. Pizza Hut on the other hand as shrimp poppers, sweet and sour kabobs, lamb sausage for toppings and waffle crispers. The reasonbehind Yum! Brand’s success is due to the change in menu, unlike McDonalds and Starbucks which have kept their traditional menus. Moreover, the company has researched the available resources and the farming practices of their consumers. In research, it was found that chicken is much more available and affordable than beef which is why KFC can expand quickly with the government’s approval. Yum!Brand uses the local supply that McDonalds cannot which benefits the company, the local farmers directly and the overall economy. Yum! Brand has set the standard of American franchise and customer service while also gaining the loyalty of the Chinese population. All in all the suppliers, real estate developers, and suppliers have strong relationships with the company which also attributes to the...