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The franchising phenomenon started in the United States and Europe; however it is not geographically limited thereto and is now a growing part of Israel's economy and in recent years has become a significant part of the market. Over two hundred and fifty franchised small-medium businesses are operating in Israel, in thirty seven different areas of business[1]. The most dominant franchise businesses in Israel are in the fields of: Beverage & Alcohol, Fast Food, Retail Food Industry, Real Estate, Life style, Cosmetics & Health, Pets, Clothing and Accessories. The fact that more and more large corporations revert to franchising for promoting and expanding their operations has indeed influenced the entire market, however franchising is no longer in the hold of large corporations. Small medium sized businesses also use this structure to expand their operations with only a small number of branches. At the same time, one might find corporations such as: "McDonald's", "Domino's Pizza" (Fast Food), "Zara", "Mango" (fashion & clothing), "Remax" (Real Estate), "Toys-R-Us" (Children) - with dozens of branches all over Israel - all using the franchise implementation.   

On 22 January 2007 the Federal Trade Commission (FTC) approved an amended Franchise Rule.  

The new regulations change the scope of disclosure in Franchise Transactions. U.S companies get the advantage of limited disclosure while foreign companies, who whish to penetrate the U.S market, carry the burden of excessive disclosure obligations.