FRANCHISING AS A STRATEGIC MECHANISM FOR MITIGATING RISK IN INTERNATIONAL EXPANSION

Abstract

This article analyzes franchising as a strategic mechanism for risk mitigation in international expansion, focusing on the relationship among governance, institutional environment, market selection, and local partnership, the study was developed through bibliographic research with a qualitative approach, guided by the analysis of studies on the internationalization of franchise chains and the conditions that influence their entry into foreign markets, the findings indicate that franchising supports international entry with lower direct resource commitment, while allowing the franchisor to preserve intangible assets, share operational responsibilities, and increase its capacity for adaptation in different regulatory, economic, and cultural contexts, it was also observed that the institutional stability of the destination country, the quality of network governance, and the selection of qualified local partners directly affect the continuity and security of international operations, it is concluded that franchising represents a relevant alternative for organizations intending to expand beyond national borders with greater strategic prudence, organizational flexibility, and better distribution of exposure in business management.