Exploring regulatory challenges in franchising governance for international business expansion
DOI:
https://doi.org/10.15282/jgi.8.2.2025.11278Keywords:
Franchising, Governance, Regulatory, FranchisorAbstract
This study explores the challenges of franchise governance in international business expansion, focusing on the food and beverage industry in Malaysia. Although franchising is rapidly growing as an economic driver, a research gap remains in understanding how local and international regulations affect Malaysian franchise operations abroad. A qualitative approach was employed, using semi-structured interviews with six registered franchise companies. The data were analysed using ATLAS.ti software (version 25) through thematic analysis. Three main themes were identified: namely, (i) law and regulation, (ii) registration and compliance, and (iii) intellectual property (IP). The findings indicate that complex legal requirements, varying registration processes, and weak enforcement of IP rights pose significant challenges to the sustainability and consistency of franchise brands in international markets. However, the scope of this study is limited to the food and beverage industry and is not intended to be generalized to other sectors. This study offers practical implications for franchise industry players in formulating stronger international compliance strategies and for policymakers in developing more effective governance frameworks and IP protection to support the global expansion of Malaysian franchises.
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