The franchising business in Taiwan has become a war zone during past few years. Many international brands invaded this market with great capital, know-now, training and strong management. These competitions had brought a heavy challenge to the existing franchising business in Taiwan. Many of the original franchising business believe by expanding their location rapidly, it will help them maintain their profit and market share, even keep these competitions at bay. However, many of these franchising are lack of proper evaluation system to help them analysis expanding strategy, instead only relaying on the leader instinct and rough figures from past to make these decisions. Little did these business understand rapid expanding bring series of dynamic disadvantages which will only slowly merge in the future and can not be foreseen by traditional strategy thinking. Therefore this study focus on the dynamic approach to franchising business, using Balanced Scorecard and Strategy Map to over view the goals of the business, extend them into Key Performance Index as feasible goals. Finally defined their boundaries and using System Dynamics approach to create a model, construct the casual relation between different elements, using simulation on scenarios to test these models, hoping to find the critical elements which will be key success to franchising business. This study has the following conclusions: All business starts with a goal, but these goals are hard to define, using a series of Balanced Scorecard and Strategy Map will help business create much feasible targets.Using system dynamics model business will be able to look for anti intuition result which usually interference with best decision making.Using system dynamics model to simulate the scenarios will help business to find their leading index element in the business.Using system dynamics model to simulate the scenarios will help business to find the causal relationship between the key elements.

The present Master Thesis investigates the concept of international franchising from both business and legal standpoints. The actuality of the topic is obvious: Franchising becomes one of the most perspective and fast-developing method for business expansion, and this Diploma was written as a reflection of such tendency. In the meantime, Franchising is an extremely complex and arguable business issue and still causes a kind of confusion in people's mind. For this reason, my effort in this Work is concentrated on the diversified influence franchising has on the business and economic environment, especially in times of economic troubles. And the Thesis proves the strong correlation between the economic and legal climate from the one hand, and the business opportunities from the other. This Diploma aims at the comprehensive research of the selected theoretical and practical aspects of international Franchising. The research is focused on detailed description of the three major pillars: franchise contract, the most evident franchising trends in terms of potential opportunities and risks, and, finally, the franchise overview with the analysis of the specific industries. The main conclusion that arises from this Thesis is definitely that international franchising is not just "a vehicle for conducting business" for large-scale experienced companies, but a real driver for globalization process now-a-days. The key message is that franchising tends to be considered more as the great business opportunity, even for small- or medium-sized companies, rather then a risky business concern. It is my great hope that this Master Thesis might help the potential entrepreneurs to create a broader view on franchising in international business format before making an intelligent decision about investing in a franchise.