Legal Environment of the Destination Countries of Internationalized Brazilian Franchise Chains

Motivated by globalization, the internationalization of Brazilian franchise chains to emerging countries has grown in recent decades. This internationalization provided opportunities for expansion for companies in this segment through business in foreign markets. The objective of this article is to identify, in the institutional environment of the destination countries of Brazilian franchise chains, the legal characteristics that are determinant in their internationalization strategies for emerging markets. The methodology used was the multiple case study, with a sample of three internationalized Brazilian franchise chains. The results indicated that the legal environment has relevance in the internationalization of franchise chains, but also indicated the existence of other factors that generate security and confidence and motivated the effective selection of emerging markets. Thus, in the choice of an emerging country for internationalization, the chain seek guarantees in the formal market relations, but, due to the institutional fragility of emerging markets, they also seek guarantees in informal institutions.