A tale of two cities.

This month, in two very different cities, the global growth of franchising was readily apparent.

Consider Beijing, China and Los Angeles, Calif.

Beijing is home of Tiananmen Square and the Forbidden City, but in recent years has become a prime example of a city with exponential growth in its economy and embrace of franchising. Though the modern franchising model has not yet fully penetrated this economy, franchise systems of all shapes and sizes view this as a huge opportunity to expand their enterprises.

Los Angeles, Calif. is the home of the McDonald brothers and Money Mailer, and has deep roots in franchising. It's historically been one of the hottest franchise markets anywhere in the United States, if not the entire world. In many ways, the development of modern franchising began right here.

The concept of franchising, while in its infancy in Beijing and adulthood in Los Angeles, not only fuels economic growth, but also effectively and efficiently boosts the creation and growth of small- and medium-sized enterprises. With a proven track record, it's no wonder why the sector is expanding at a rapid pace and continues to extend its roots around the world.

As this issue of Franchising World reaches you, International Franchise Association Chairman "Doc" Cohen, CFE, and I will be representing the association at the Franchising China Conference and Exhibition in China. I'm reminded that this is the place where the first U.S. franchise system gained a foothold back in 1987. Kentucky Fried Chicken made its debut in China with company stores then and started franchising its brand three years later.

Today, KFC, McDonald's, Century 21, Subway, Marriott and scores of other franchises are expanding into this new market. The franchising model is booming in countless categories such as quick-service restaurants, automotive services, lodging and real estate.

Around the globe, U.S.-based franchises can be found in more than 100 countries. But whether in the foreign territory of Beijing or the more familiar locale of Los Angeles, franchisors must carefully consider all facets of the other countries they seek to enter. Factors such as demographics, population age, economy size and strength, and the nature of the culture itself will highly affect whether a particular U.S.-based franchise will be well received. Even if a particular franchise appears to be a good fit in a targeted foreign market, be it Beijing or Budapest or Bangkok, adjustments to your international development plan will likely be made to further tailor the franchise to its new environment and adapt to new government guidelines. This is especially true in markets like China, where regulators are still crafting the rules.

From the beginning when only a few franchise concepts began to trickle over to China from the United States, it's truly amazing to not only witness how the franchise model has spread throughout the country, but also to observe the number of different U.S. franchise concepts evolving there.

In Los Angeles earlier this month, the IFA sponsored the third annual West Coast Franchise Expo. As in previous years, the show topped expectations and set records for exhibitors and attendees. During the same week, the Franchising China Conference & Exhibition was being hosted in Beijing by IFA and Global Sources. Franchisors from multiple countries exhibited at each event. And in both of these two very different cities, entrepreneurs spoke the global language of franchising. Whether you were in Beijing, where Doc and I were, Los Angeles where so many of our other members were, or anywhere in between, it's apparent that franchising continues to expand in virtually every market in the world.