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The franchise agreement usually contains informations on the franchise systems, including the trademarks and products, the territory, rights and the obligations of both parties, procedures, training, assistance, advertising, terms of the franchise, payments arrangement, and the termination and or the right to transfer the franchise. (Beshel, 2001) p. 8.

Finally, Morrison, (1996) in Hoy &Stanworth, (2003, p.198) stated that ' maintaining a harmonious franchisor- franchisee relationship is a major determinant of franchise system growth and success, while Justis et al( 1993) in Hoy &Stanworth, (2003, p.198) argues that this is one of the most difficult and frustrating challenges in franchising.

The Concept of Proprietary Advantage

Business entrepreneurs think of expanding their business scope when they have the opportunity to do so. Hymer (1976) in Shane (1996, p.76) argued that firms expand because they possess a proprietary advantage that makes them able to outcompete local entrepreneurs. In most cases, franchising to franchisor can be regarded as an example of proprietary advantage, where the business system is unique to the franchisor (Calvet, (1981) in Shane (1996 p, 76).

Proprietary advantage is an essential concept in any business using franchising model as an expansion strategy. Most companies with proprietary advantage have the opportunity to expand fast both locally and overseas, the advantage becomes useful in foreign markets at little or no marginal cost over the cost of developing the advantage in the domestic market.(Caves,(1971) in Shane (1996 p.76).

For instance, McDonalds Corporation uses this concept in their business franchise networks globally with the proven format system and other operational procedures unique to the company.

The concept of Franchisee Opportunism

One of the important dimensions of a franchisor's business system is the set of mechanisms developed to control franchisee opportunism. In a market setting, when business relationship is established between two independent parties, each entity has an incentive to act opportunistically. (Williamson, 1985 in Shane (1996, p76).

According to Shane (1996, p76), under such circumstances, the parties to the transaction need to invest in mechanisms to detect and prevent cheating. These mechanisms becomes part of the franchisors set of capabilities.

Shane (1996, p76), therefore states that 'the mechanism for franchisee opportunism is greater in international transactions than purely domestic ones'.

Globalization and Franchising (Diffusion of Franchise Systems)

Globalization refers 'to the shift toward a more integrated and interdependent world economy', (Hill, 2005.p6). The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace.

With increased globalization of markets, food and culture, international franchised opportunities have recorded lots of develop本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。