International Franchising a Strong Influence on Japanese Economy

asked about 10 months ago

Japan is one of the most stable & financially rewarding destinations for those looking to franchise internationally. Franchising experts All State Franchise Finders tells why.

Economic Overview

The Japanese economy is the second-largest developed economy in the world and it has the third-largest (nominal) GDP. Japan, with a population of over 127 million, is considered one of the world’s most innovative countries, with a manufacturing industry focussing mainly on high-tech and precision goods across a variety of market sectors.

For the past 50 years, Japan has been open to international franchising and foreign investment. Since the 1970s, international franchising has played a significant role in influencing and developing Japan’s economy over the years. Franchising is considered a vital and integral aspect of the country’s economy and day-to-day business landscape.

Ease of Doing Business

Japan is currently ranked 34th out of 190 countries in the World Bank Group’s Ease of Doing Business world rankings. These rankings identify how conducive each country is to starting and operating a local business. It looks at many factors, including the regulatory environment of each particular country.

While there are no specific franchising laws in Japan, franchise businesses are regulated by several general commercial laws and disclosure guidelines. The Companies Act (2005), Foreign Exchange and Foreign Trade Act (1949), the Medium and Small Retail Commerce Promotion Act (1973) and the Unfair Competition Prevention Act (1993) are in place to protect various aspects of franchising within Japan. The Japan Fair Trade Commission has also published Guidelines on Franchising under the Anti-Monopoly Law (1947).

Tokyo a Major Franchising Hub

Tokyo, with a population of approximately 37 million, is the most popular destination for businesses looking to franchise into Japan. Over seventy percent of the country’s economy is concentrated in and around the capital city.

At $198 billion, Japan is the second-largest franchise market in the world, and experts like Derek Cafferata from All State Franchise Finders recommends Tokyo as a good starting point for those looking to franchise into Japan.

“Tokyo and its surrounding region is the world’s most populous metropolitan area,” said Derek Cafferata. “Since the 1960s, Tokyo has been considered one of the leading influential financial centres. It makes business sense to consider Tokyo as a starting point for franchising into Japan.”

International Franchising Experts

All State Franchise Finders are the leading franchising experts. With their headquarters in Fort Worth, TX, All State Franchise Finders are the experts when it comes to franchising within the United States and internationally.

Derek Cafferata and his team at All State Franchise Finders work together with business owners who are keen to take that next step beyond domestic franchising. Able to offer the right advice, and with a wealth of knowledge and experience, a large number of U.S. based franchises have successfully launched around the globe into some of the most financially lucrative markets, including Japan.

For those who are looking to take their franchise internationally, contact All State Franchise Finders on 1-800-544-2161 or visit their website for more information.