Franchising in China is a relatively new and growing phenomenon. Among the franchising pioneers in China are the large and well-known food and beverage brands such as Kentucky Fried Chicken and McDonald's. Less known, but equally important, are the non-food retailing and service industries, such as The Athlete's Foot company. This U.S. born company made early entry into China using master international franchising. As the industry continues to grow, The Athlete's Foot franchise is losing its first-mover advantage and faces increased competition from department stores and brand-specific retailers, among other challenges. The case describes franchising in China, the Athlete's Foot company, and the experiences of the Chinese master franchisee.
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