Franchising is a strategy employed mainly by service companies. The advantages of franchising are similar to those of licensing. The franchiser does not bear the development costs and risks of commencing the operations in a foreign market on its own since the franchisee typically assumes those costs and risks. Thus, a service company can build up a global presence quickly and at a low cost, using a franchising strategy. The disadvantages, however, are less prominent than in the case of licensing. Since franchising is a strategy used by service companies, a franchiser need not coordinate manufacturing activities in order to realise experience- curve effects and location advantages. McDonald Restaurants have entered India through the franchising and so is Kentucky Fried Chicken of US.