TWO SIDES OF THE SAME COIN? A SYSTEMATIC REVIEW OF FRANCHISING AND BRAND LICENSING AS COMPLEMENTARY EXPANSION STRATEGIES

Abstract

This paper presents a systematic literature review on franchising and brand licensing as business expansion strategies in a globalised context. Through a rigorous analysis of academic publications from the last five years, indexed in Scopus and Web of Science databases, the study examines the main theoretical foundations underpinning these contractual modalities, with emphasis on transaction cost theory, resource scarcity theory and the resource-based view. The article analyses franchising models — single-unit, multi-unit and area development —, the determinants of franchisee performance, the specificities of brand licensing and the critical success factors in licence contract management. The growing relevance of digital transformation in franchise chains and the sustainability challenges shaping the sector’s contemporary agenda are also discussed. Results indicate that the success of these strategies depends on alignment between contractual objectives, robust governance mechanisms, cultural compatibility and the dynamic capacity for market adaptation. It is concluded that franchising and brand licensing are complementary instruments and that choosing between them requires an in-depth strategic analysis of resources, organisational competencies and target market characteristics.