Journal articles on the topic 'Franchises'
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1
Kim, Seung Beom, and Kanghwa Choi. "Bridging the Operational Efficiency Differences between Franchisors and Franchisees: A Metafrontier Approach." Processes 10, no. 10 (October 7, 2022): 2021. http://dx.doi.org/10.3390/pr10102021.
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A franchise business is a contractual relationship in which the franchisor and franchisee should cooperate to promote sustainable growth of their franchise entities. However, it is still unclear whether the relationship between franchisees and franchisors is a principal–agent or a business partner sharing a business goal. Thus, this study is a first attempt to investigate the relationship between franchisees and franchises using metafrontier and bootstrap DEA from the perspective of efficiency. We measured the efficiency of coffee franchises in Korea, which have grown rapidly in recent years despite the COVID-19 pandemic. Based on the bootstrap DEA results, there was a statistically significant difference in efficiency between franchisors and franchisees under the variable return-to-scale assumption. While the main cause of inefficiency in premium coffee chains is attributed to scale inefficiency, most franchisees have pure technological inefficiency. Thus, coffee franchisees can improve the operational efficiency by adjusting their business scale and reallocating service resources. This study demonstrates tailored operational plans to improve the operational efficiency of premium and mainstream coffee franchises and offers strategic initiatives to decrease the difference in efficiency between franchisors and franchisees.
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Fernández-Monroy, Margarita, Josefa D. Martín-Santana, and Inmaculada Galván-Sánchez. "Building successful franchise partnerships: the importance of communication and trust." Management Decision 56, no. 5 (May 14, 2018): 1051–64. http://dx.doi.org/10.1108/md-07-2016-0528.
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Purpose The purpose of this paper is to propose a conceptual model for building successful franchise partnerships. The model examines the influence of communication and trust on satisfaction and performance in franchise partnerships, considering that franchises are based on franchisor-franchisee and franchisor-supplier relationships. Design/methodology/approach The unit of analysis refers to the relationships that the franchisor maintains with the franchisees and the main supplier, from the franchisor’s perspective. A mail survey of 592 franchises was conducted by means of a structured, self-administered questionnaire for data collection. A total of 98 valid questionnaires were received and analyzed using structural equation modeling. Findings Results indicate that communication between franchise partners is related to satisfaction through trust. In fact, communication is a major precursor of trust. Findings also show the direct influence of trust on satisfaction in both relationships. Finally, results evidence that developing satisfactory relationships between partners improves strategic and operational franchise outcomes. Research limitations/implications The use of the questionnaire limits the approach to information gathering. In addition, the study focused on the franchisor’s perspective of the relationships and it would be interesting to include other partners’ opinions. Further, research should broaden the study scope to include other factors of franchise partnerships. Practical implications This study provides franchisors with guidelines to develop satisfactory relationships. It recommends that franchisors design adequate programs to create, maintain, and enhance franchise partnerships, and also to improve a trust-based culture. Originality/value The analysis is conducted taking into consideration the franchisor-franchisee relationship and the franchisor-supplier relationship. Measurement scales are developed and validated for both relationships.
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Balsarini, Peter, Claire Lambert, Maria M. Ryan, and Martin MacCarthy. "Subjective Knowledge, Perceived Risk, and Information Search when Purchasing a Franchise: A Comparative Exploration from Australia." Journal of Risk and Financial Management 14, no. 8 (July 21, 2021): 338. http://dx.doi.org/10.3390/jrfm14080338.
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Franchising has long been a method by which organizations seek to expand and facilitate local market development. However, franchising as a growth strategy can often be hampered by lack of suitable franchisees. To mitigate this shortage, some franchisors have engaged in recruiting franchisees internally from the ranks of their employees in addition to the traditional approach of recruiting franchisees externally. Predominantly franchisees are individuals rather than corporations and thus purchasing a franchise should most commonly be characterized as a consumer acquisition. To explore the relationship between subjective knowledge, perceived risk, and information search behaviors when purchasing a franchise qualitative interviews were conducted with franchisees from the restaurant industry. Half of these respondents were externally recruited having never worked for the franchisor and half were internally recruited having previously been employees of the franchisor. The external recruits expressed a strong desire to own their own business and engaged in extensive decision-making processes with significant information search when purchasing their franchises. Contrastingly, the internal recruits expressed a strong desire to be their own boss and engaged in limited, bordering on habitual decision-making processes with negligible information search when acquiring their franchises. The results reveal that differences in subjective knowledge and perceived risk appear to significantly impact the extent of information search between these two groups. A model of the relationship between subjective knowledge, perceived risk and information search in the purchasing of a franchise is developed that reconciles these findings. The findings also have practical implications for franchisors’ franchisee recruiting efforts which are integral to their capacity to develop local markets.
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Abdul Ghani, Mohd Faizal, Mohd Hizam-Hanafiah, Rosmah Mat Isa, and Hamizah Abd Hamid. "A Preliminary Study: Exploring Franchising Growth Factors of Franchisor and Franchisee." Journal of Open Innovation: Technology, Market, and Complexity 8, no. 3 (August 8, 2022): 138. http://dx.doi.org/10.3390/joitmc8030138.
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Previous literature has acknowledged franchising as a great way for businesses to expand into new areas and opportunities. It has become a popular option for those who are looking to start their businesses by choosing a well-known company’s brand name and a ready-made business operation, or existing entrepreneurs who want to franchise their firms. Franchising a business contributes to the GDP of the countries involved, including Malaysia. However, little is known about what drives the growth of franchised firms, particularly in emerging countries such as Malaysia. Hence, this study aims to identify the growth factors of franchising, from both the franchisors’ and franchisees’ viewpoints. Therefore, from this dyad relationship, the analysis can provide comprehensive views of the growth factors of franchises. Interestingly, as this study was conducted during the pandemic COVID-19, the findings would include the pandemic situation that reflects the business environment. Therefore, the case study method was adopted, which involved semi-structured interviews with five service firms from two different brands, including franchisors and franchisees. The findings show that three growth factors emerged from this study: product and service innovation, franchisor-franchisee tolerance, and government support. This study contributes to obtaining a deeper grasp of the growth factors of franchisors and franchisees. Moreover, this study contributes to developing an effective franchising business process model as guidance for franchisors, franchisees and policymakers. This study also provides avenues for future research.
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Grace, Anthony Richard, Lorelle Frazer, Scott K. Weaven, and Rajiv P. Dant. "Building franchisee trust in their franchisor: insights from the franchise sector." Qualitative Market Research: An International Journal 19, no. 1 (January 11, 2016): 65–83. http://dx.doi.org/10.1108/qmr-09-2014-0085.
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Purpose – The purpose of this research is to identify the critical determinants of a franchisee’s trust in their franchisor. Design/methodology/approach – A qualitative approach was used, and 30 interviews were conducted with franchising participants. The first phase of the research consisted of exploratory interviews with franchising experts (franchise lawyers, accountants, consultants, mediators and bankers), and the second phase consisted of semi-structured interviews with franchisees and franchisors across two franchise systems. Findings – The research revealed five critical determinants of a franchisee’s trust in their franchisor: franchisee’s engagement in the system, franchisee’s confidence in the system, franchisee’s perception of a strong team culture, franchisee’s perception of franchisor competence and franchisee’s perception of franchisor character. Practical implications – The research provides insight into how the aforementioned components can be developed within a franchise system to build franchisee trust. The paper also concludes with four practical recommendations that can be integrated within a franchise system to increase levels of franchisee trust. Originality/value – This research builds on prior research into franchisee trust, providing an original contribution to the literature through the development of a practical model, showcasing critical determinants of a franchisee’s trust in their franchisor.
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DERMONDE, MATHEUS, and BRUNO BRANDÃO FISCHER. "BRAZILIAN FRANCHISE STARTUPS AND THE COVID-19 CRISIS: ORGANIZATIONAL STRUCTURE AND ADAPTION CAPABILITIES." Revista Alcance 28, no. 3(Set/Dez) (August 31, 2021): 392–407. http://dx.doi.org/10.14210/alcance.v28n3(set/dez).p392-407.
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Purpose – The purpose of this study is to understand how franchise startups have been facing the crisis caused by COVID-19, with greater emphasis on the effects of the franchising decision on the survival of this type of business during the crisis period.
Design/methodology/approach – This is a qualitative research, conducted through multiple-case studies on four Brazilian startups that operate through franchised units. Data were collected through online interviews with founders and managers of the franchisee, complemented with information obtained from the companies' websites/social media and articles published in business magazines. The technique of content analysis was used.
Findings – We found that franchise startups can operate through conventional franchises or micro-franchises. In both cases, we found no reduction in the agility or flexibility of these businesses. Thus, within a crisis context, resilience allows the franchisor to gain greater advantages from its franchisees, if it opts for the conventional franchise model.
Originality – This research addresses the intersection between two business models: startups and franchises. It contributes to the understanding of both areas, as well as the effects of a business model in a crisis context.
Limitations/implications – This is a study conducted with a small number of cases within a similar context. The main implications of this research are the formulation of a set of propositions about the startup franchising process and the effects of a crisis for companies that adopt this operating model, and a descriptive diagram of this process.
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Sanny, Lim. "Investigating the Franchisee’s Performance: Study of International Education Frachising in Indonesia." Advanced Science Letters 21, no. 4 (April 1, 2015): 1031–34. http://dx.doi.org/10.1166/asl.2015.5976.
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The purpose of this study was to investigate the factors required by the franchisees in improving their performance. The study also reveals the influence of quality management for franchisee satisfaction and performance. In addition, this study also examines the effect of Entrepreneur Orientation as a moderator variable between satisfactions with performance. This research was conducted at the International Franchise Education in Indonesia. The online survey conducted on 200 franchises and 72 data obtained can be processed. Analysis of the data using Warp PLS 3.0, shows that relational quality greatly affects quality management between the franchisor and franchisee compared to transactional quality. This study also revealed that the success of the franchise business, a franchisee needs to feel satisfied with the quality management of the franchisor; the franchisee can thus have a good performance. This study also showed that a franchisee which has the orientation Employers will be able to produce a good performance, if the franchisee has a good relationship with the franchisor. Nevertheless entrepreneurial orientation factor does not directly affect the franchisee performance.
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Araújo, Davi Lucas Arruda de, Silvio Popadiuk, and Rafael Morais Pereira. "Barriers to knowledge transfer of the franchisor to franchisee: an application in language schools." Journal of Workplace Learning 32, no. 5 (April 25, 2020): 317–34. http://dx.doi.org/10.1108/jwl-09-2019-0110.
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Purpose This study aims to measure the influence of the barriers present in the knowledge transfer at the sales process, by the franchisor to the franchisee, in language schools in the São Paulo/SP city, Brazil. The theoretical aspects include the transfer of knowledge displayed through communication model and barriers inherent in this process. Using (Szulanski 1996) approach the barriers may occur in relation to, namely, the content of knowledge; context; the source; the recipient. Design/methodology/approach The methodology is quantitative and the type of research is exploratory and descriptive. For this investigation was used an adapted version of the questionnaire developed by Szulanski (1996), applied to a sample of 79 franchised language schools linked to the Brazilian Franchise Association. Beyond factor analysis it was used the nonparametric test of Jonckheere-Terpstra and analysis of variance, to comparing schools. Findings The results of this analysis revealed that certain types of knowledge transfers are evaluated by the franchisees as more favorably or unfavorably according to the brand franchise. These results show a lack of standardization trend of the activities of the sales process and mismatches with the guidelines of the franchisor. The authors highlight that in the comparison between the brands is evident the dominance of the CNA in relation to other networks of language franchises when analyzed the relationship factors, technical adequacy, absorption of knowledge, competence to absorb knowledge and in the indicators contribution to revenue, acceptance of guidelines and bring results. Originality/value This research contributes to the identification of barriers that are involved during the transfer of practices of the franchisor to the franchisee on the knowledge of the sales process in language schools, awakening in franchisee reflections of improvements and solutions that can be worked on and developed in their units. Specifically, the study contributes to the knowledge management literature in franchises, as this topic is still emerging, as it presents conflicting findings.
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Joshi, Upasna. "Franchise Mart-The Source of Indian Entrepreneur." Journal of Education and Vocational Research 2, no. 1 (July 15, 2011): 4–9. http://dx.doi.org/10.22610/jevr.v2i1.18.
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Most of us encounter dozens of franchised businesses each day, ranging from familiar fast-food restaurants to franchised educational systems such as Learn Right. Franchise means the special right given by the producer of a product (brand) to another firm to sell his product in a particular area. Franchising operation is a contractual relationship between a franchisor (the company offering the franchise) and the franchisee (the company undertaking to promote the sale of franchisor’s products). Individual franchises are a tightly knit group of enterprises whose systematic operations are planned, directed and controlled by the operation’s innovator, called the ‘franchisor’. Franchising continues to be a highly regulated industry that endeavors to promote the healthy growth of the economy. As an entrepreneur is a catalyst in the process of economic development, there is a need to develop the concept of entrepreneurship. Franchise Mart is a source to develop the Indian entrepreneurs. The present paper aims to discuss the concept of franchising, reasons for franchising and different opportunities provided by franchising for development of Indian entrepreneurs. The top established and emerging franchises both national and international are also discussed in our present paper. Finally, some suggestions are given for success in franchising.
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Kaufmann, Patrick J., and William S. Vincent. "Franchisor Environmental Liability for Previously Contaminated Property." Journal of Public Policy & Marketing 16, no. 2 (July 1997): 289–97. http://dx.doi.org/10.1177/074391569701600209.
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Environmental legislation has created potential liability for retailing franchisees that purchase previously contaminated land. Because of the quasi-integrated nature of the franchise relationship, the franchisor also may be drawn indirectly into liability for its franchisee's cleanup costs. The franchisor has two options to reduce its chance of liability. Faced with a decision to distance itself from the site selection process or incur the added costs and potential pricing impacts of greater involvement in the process, franchisors have strong incentives to reduce franchisee support. This reduction in support has detrimental implications for both franchise policy and environmental policy. The authors report the results of an empirical study that links franchisors’ concerns about potential environmental liability to actions to distance themselves from the site selection process or, alternatively, formally to require franchisee environmental investigation of all prospective properties.
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Simin, Marina Jovićević, and Slobodan Živkucin. "ADVANTAGES OF FRANCHISE SYSTEM FOR DEVELOPMENT OF ENTREPRENEURSHIP." Knowledge International Journal 28, no. 1 (December 10, 2018): 177–81. http://dx.doi.org/10.35120/kij2801177j.
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Franchising is considered the most successful marketing concept around the world. Today, many franchises are offered, and it is incomparably easier and more secure to develop entrepreneurial spirit under the patronage of the already developed system. Franchise is called long term, firm contractual cooperation between independent companies or entrepreneurs, franchisor and franchisee, where the franchisor provides the franchisee with a set of knowledge and gives it its brand. The number of franchise systems in the world is rising, and competition compels the franchisee to search for new and attractive offers. The largest number of franchises exists on the United States market, the number of employees in this market is in arrears, and achieves the high GDP measured in billions of dollars. In the United States are represented all kinds of franchise systems, from the automotive industry, restaurants, education, beauty salons to new forms of work from home. Canada is the second largest in franchising, many forms have been developed that place the franchise at the very top of economic business. In Europe, the less developed countries, such as Poland, the Czech Republic, Hungary, Bulgaria, etc., are developing more and more domestic brands and striving towards the conquest of international markets. New models of franchised business such as home-based franchises are being developed to allow most people to work from home. The application of the franchise system in our country would significantly contribute to the development of the domestic market. The future success of franchising in Serbia depends on the ability to innovate, improve the size of the site, provide education to interested small and medium-sized enterprises and entrepreneurs. Looking at all these countries and different markets, one can conclude that franchising is less developed in weaker economies, while economically more developed markets achieve even greater expansion in the form of GDP, employment, education, institutions. If each country awakens awareness of the value of franchising as a good technique for enterprises and entrepreneurs, it will open the possibility of expansion franchising to international markets, through marketing, social networks and the Internet. What is important is that this type of franchising is developing in our country and in this way it is slowly focusing on international markets. In franchising, the risk of business failure when starting a business is significantly lower than when starting a stand-alone business. Franchising is a way to use a proven, more successful, business model in a personal business, thereby reducing the likelihood of failure. The franchisee still continues to act substantially with his own resources, at his own risk, but under a different name. A well-known and famous brand is an additional guarantee for greater recognition and an automatically higher number of consumers. Franchising is a shortcut to a more successful business success. In the future, banks are expected to pay more attention to the financing of franchising, as both franchisees and recipients are referred to banks that receive the role of checkpoints and mediators.
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Chen, Ye-Sho. "Utilizing Information Technology in Senior Care Franchises." International Journal of Computers in Clinical Practice 3, no. 2 (July 2018): 48–62. http://dx.doi.org/10.4018/ijccp.2018070104.
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Franchising involves receiving business rights. In addition to the popular growth strategy for many businesses, franchising has emerged over the years as a pathway to wealth creation for entrepreneurs interested in senior care. In this article, the authors first discuss the use of information technology in senior care franchises, including franchisor/franchisee relationships and the essential indicators needed to allow a good relationship to flourish, and the inevitability of collaborative learning and innovation. This leads to the discussion of the working knowledge development among the franchisor and the fellow franchisees. Second, this paper discusses that an attention-based IT infrastructure that will enable the senior care knowledge sharing and dissemination between the franchisor and the franchisee.
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Dant, Rajiv P., Patrick J. Kaufmann, and Audhesh K. Paswan. "Ownership Redirection in Franchised Channels." Journal of Public Policy & Marketing 11, no. 1 (March 1992): 33–44. http://dx.doi.org/10.1177/074391569201100104.
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Since the typical franchise arrangements permit the more powerful franchisors to simultaneously act as suppliers as well as competitors to their franchisees, apprehensions about potential opportunistic behaviors and allegations of antitrust violations are not uncommon. In turn, this unique structuring of franchises with dual distribution has drawn considerable scrutiny from the public policy platform. In particular, the ownership redirection hypothesis—that the powerful franchisors will reacquire the best franchised outlets relegating only the marginal units to franchisees—has received special attention because it verbalizes the worst fears associated with franchising. This paper provides an evaluation of this hypothesis. To do so, we examine (1) the key premises of the hypothesis from the perspectives of a number of related literatures and (2) the available empirical evidence on the hypothesis. Both aspects of the appraisal point to a number of unresolved issues with important public policy implications.
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Pranoto, Ersan Suria. "An Overview of Franchising In The Hospitality Industry." Binus Business Review 1, no. 1 (May 30, 2010): 133. http://dx.doi.org/10.21512/bbr.v1i1.1062.
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Nowadays, franchising is the most significant part in the hospitality industry through hotels and fast food restaurant. Franchisor gives the right to the franchisee to sell their product and service also to sub franchise it and worked under their brand name. Furthermore, in franchising there must be a contract between the franchisor and the franchisee which include the term and condition. Franchises include some aspects such as, screening, site selection, operating manuals and the pre opening. However, there are some advantages and disadvantages for both the franchisor and the franchisee. The expansion of franchise can be achieved through different strategies of distribution and the knowledge of the targeted market. The future of franchise can be gained through strategies of distribution system, which could emerge the entrepreneur into the majority economy and business.
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Antia, Kersi D., Sudha Mani, and Kenneth H. Wathne. "Franchisor–Franchisee Bankruptcy and the Efficacy of Franchisee Governance." Journal of Marketing Research 54, no. 6 (December 2017): 952–67. http://dx.doi.org/10.1509/jmr.14.0182.
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Franchisors’ long-term viability is tied to the ongoing operations of their franchisees. To ensure the ongoing performance of franchisees, franchisors deploy multiple governance mechanisms. This study assesses how governance mechanisms deployed to enhance franchisee ability (via selection and socialization) and motivation (via incentives and monitoring) impact franchisee bankruptcy. The authors examine the individual and joint effects of deploying governance mechanisms that share the same underlying objective, namely, to enhance franchisee ability and motivation. They also assess how motivation-inducing mechanisms may serve to counter the motivation-dampening effect of an increased royalty rate. Relying on data from multiple archival sources, the authors identify all bankruptcy filings by franchisees and their franchisors across 1,115 franchise systems over a 13-year observation window. Their findings document a positive and significant relationship between franchisee and franchisor bankruptcy. They also find main and interaction effects of the ability- and motivation-influencing governance mechanisms on the likelihood of franchisee bankruptcy, and the existence of significant bankruptcy spillovers among franchisees within the same franchise system. They discuss implications for franchise theory and management.
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Chien, Shih-Yi. "Franchisor resources, spousal resources, entrepreneurial orientation, and performance in a couple-owned franchise outlet." Management Decision 52, no. 5 (June 10, 2014): 916–33. http://dx.doi.org/10.1108/md-07-2013-0368.
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Purpose – Franchise outlets owned by entrepreneurial married couples are gradually increasing. Based upon prior research in resource-based view, entrepreneurial orientation (EO), franchising, and family business, the purpose of this paper is to analyze franchisor resources, spousal resources, and EO are critical to the development of franchisees’ performance. Design/methodology/approach –The author conducted a survey of 99 franchisees in couple-owned convenience store franchise outlets in Taiwan using the partial least squares technique. Findings – It was found that franchisor resources, spousal resources, and EO directly affect franchisee performance. In addition, franchisor resources also have an indirect effect on performance through EO, but spousal resources do not have an indirect effect. Practical implications – The franchisor should pay attention to the development of their resources and a franchisee's EO and the interaction between the franchisee and the spouse. Furthermore, a franchisee's EO facilitates the manipulation of the franchisor's resources. Originality/value – This study highlights the possession of franchisor and spousal resources, and the importance of EO to foster and develop the franchisee performance in a couple-owned franchise outlet. These findings also suggest that franchisor resources have indirect effect on performance through EO.
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Abd Aziz, Nurul Ashykin, Mohd Hizam-Hanafiah, Hasif Rafidee Hasbollah, Zuraimi Abdul Aziz, and Nik Syuhailah Nik Hussin. "Understanding the Survival Ability of Franchise Industries during the COVID-19 Crisis in Malaysia." Sustainability 14, no. 6 (March 9, 2022): 3212. http://dx.doi.org/10.3390/su14063212.
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Since the world was hit by the COVID-19 pandemic crisis that began in December 2019, many industries have been affected, including the franchise industry in Malaysia. Thus, the COVID-19 pandemic has had a great impact on business survival. Direct effects can be seen in reduced income, job losses, changes in customer preferences, and business relationships between franchisors and franchisees. Some franchises have had to close their operations, and others still struggled to survive during the pandemic crisis. In addressing this situation, the role of government is crucial in supporting the resilience of these franchisor entrepreneurs in an increasingly worrisome situation around the world. However, the existing literature that focuses on the role of government in developing countries such as Malaysia is still poorly understood. In addition, a study of the Malaysian franchising industry during the pandemic crisis is still inadequate, especially concerning the government’s role in the survival of local franchises during the pandemic era. Therefore, understanding the role of the government in advocating the survival of local Malaysian franchises is worth studying. A qualitative research approach was applied through multiple cases involving twelve (12) franchise business owners and four (4) franchise-related agencies in Malaysia. In-depth interviews were conducted in exploring this topic. Thematic analysis has been used by applying “Atlas.ti” in analysing the data. Hence, the findings have indicated four themes from the grounded data. There are: (i) financial assistance; (ii) virtual franchise exhibition; (iii) training and support; and (iv) business development grants. This study is expected to highlight the role of government as well as agencies involved with the franchising industry in improving policies, strategies, and programs to ensure the viability of the franchise industry during periods of pandemic outbreaks.
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Willemse, Leonard C. "Die inkomstebelastinghantering van aanvangsfranchisefooie betaalbaar in die Suid-Afrikaanse petroleumbedryf." Journal of Economic and Financial Sciences 4, no. 2 (October 31, 2011): 407–26. http://dx.doi.org/10.4102/jef.v4i2.328.
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A wholesaler of petroleum products is prohibited in terms of section 12(2)(c) of Regulation 287 of the Petroleum Products Act, No. 120 of 1977, to own a retail licence for purposes other than that of training. As a result, petroleum companies make use of franchises to sell their products. The concept of a franchise is based on the principle that a franchisee obtains the franchise of an existing, often prosperous, business from a franchisor, and then operates the business under the banner of this franchise. The franchisee pays the franchisor franchise fees as consideration for certain items or privileges obtained. This article investigates the deductibility of franchise fees in terms of the current South African Income Tax Act, No. 58 of 1962 and includes an evaluation of Australian Income Tax Act sections that might offer deduction possibilities for franchise fees if applied within a South African context.
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MELO, PEDRO LUCAS DE RESENDE, FELIPE MENDES BORINI, MOACIR DE MIRANDA OLIVEIRA JR, and RONALDO COUTO PARENTE. "INTERNATIONALIZATION OF BRAZILIAN FRANCHISE CHAINS: A COMPARATIVE STUDY." Revista de Administração de Empresas 55, no. 3 (June 2015): 258–72. http://dx.doi.org/10.1590/s0034-759020150303.
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The primary goal of this paper is to comprehend the fundamental organizational differences between Brazilian franchise chains that only operate in the home market and Brazilian franchise chains that operate internationally. The sample chosen for this study comprehends 96 Brazilian franchises operating in the home market and 67 franchises with international operations; logistic regression was used to analyze data obtained from these sources. Our findings suggest that the development of a brand in international operations can be strategic for certain Brazilian franchise chains; this seems to be, however, a scarce resource for many franchises and it could be developed through international operations. With regard to the fees charged, the outcomes demonstrate that Brazilian franchises with international operations tend to charge lower fees from its franchisees to install new units. Regarding the monitoring and control of franchises, there is evidence that the monitoring capability is one of the determining factors in the development of Brazilian franchises international operations.
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Saputra, Dwi Purnawan Dodik, Johannes Ibrahim Kosasih, and Desak Gde Dwi Arini. "Perlindungan Hukum Bagi Hoki Clean Shoes dalam Perjanjian Waralaba." Jurnal Preferensi Hukum 2, no. 1 (March 19, 2021): 45–50. http://dx.doi.org/10.22225/jph.2.1.2795.45-50.
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The franchising is one of the business activities that support the economy. Therefore, in this study, this study analyzes the implementation of the franchise agreement clauses between franchisees and franchisees and knows the legal protection for Hockey Clean Shoes in case of default by the franchisee. This research uses empirical methods using document studies and field studies and data analysis using descriptive qualitative. The results show that the Hoki Clean Shoes franchise agreement has met the minimum clauses that must exist in the franchise agreement as stipulated in Government Regulation Number 42 of 2007 concerning Franchising and has fulfilled the principles of the agreement and is applicable in Indonesia. The obstacles faced by Hockey Clean Shoes so far are related to franchises because this is in the service sector so the turnover obtained by the franchisee every month is difficult for us to know because the financial management we do is different from the facts in the field. Franchise cooperation agreements like this are also vulnerable to default.
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Bakalarz, Tomasz. "Odpowiedzialność organizatora sieci franczyzowej wobec pracowników zatrudnionych przez uczestnika sieci." Przegląd Prawa i Administracji 113 (September 12, 2018): 9–22. http://dx.doi.org/10.19195/0137-1134.113.1.
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THE RESPONSIBILITY OF THE ORGANIZER OF THE FRANCHISE NETWORK TOWARDS THE EMPLOYEES EMPLOYED BY THE NETWORK PARTICIPANTThe franchise system is based on cooperation of unrelated entities. Each franchisee has an independent employer status and is responsible for employee’s damages. In this article, the author aims to analyze this basic principle. Franchisor has a contractual right to supervise realization of franchise’s package. However, in extremal cases, this control power may be abused. Franchisor may influence franchisee’s decision in the area of employment, limiting franchisee’s independence as an employer. The author analyzes this cases and an opportunity of recognizing franchisor as employer or joint employer of franchisee’s employees. The author, fi nally, examines whether the franchisor may be held liable for damages to the employees.
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VAROTTO, LUÍS FERNANDO, and JURACY GOMES PARENTE. "FRANCHISOR-FRANCHISEE RELATIONSHIP QUALITY: TIME OF RELATIONSHIP AND PERFORMANCE." Revista de Administração de Empresas 56, no. 6 (December 2016): 600–610. http://dx.doi.org/10.1590/s0034-759020160603.
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ABSTRACT Franchise literature disputes how the relationship between franchisors and franchisees develops over time. Traditional lifecycle theory views relationships following an ascendant curve, in which relationship quality and performance strengthen over time. Another perspective better reflects the peculiarities of the franchisor-franchisee relationship, indicating that relationship quality in franchise systems follows a U-shaped curve. There is also limited research on the moderating effect of time on the relationship between relational variables and outcomes. This study sheds light on the influence of relationship duration on relationship quality and financial performance in the franchisee-franchisor relationship. Using a self-report survey from a sample of 342 franchisees, mean and regression analyses are conducted to test relationships. Results confirm the time effect on franchisor-franchisee relationship quality and performance, but the hypothesized shape of relationship phases is only partially confirmed. Moreover, time has a positive moderating effect on the impact of relationship quality on financial performance.
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Calegari, Michael. "Financial Analysis of Krispy Kreme’s Earnings Forecasts, Joint Venture Investments, and Franchise Repurchases." Issues in Accounting Education 25, no. 1 (February 1, 2010): 85–118. http://dx.doi.org/10.2308/iace.2010.25.1.85.
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ABSTRACT: Like many restaurant chains, Krispy Kreme Doughnuts earns revenues from both company-owned stores and from franchisee-owned stores. Following its April 2000 IPO, Krispy Kreme Doughnuts entered into several joint ventures with franchisees to develop new stores. In some situations, the Company also re-acquired franchise rights from its franchisees. This case provides you with the opportunity to assess analyst forecasts of Krispy Kreme’s earnings following the release of its February 3, 2002 financial statements. Through analysis of footnote disclosures on the Company’s joint ventures and repurchased franchises, you will identify potential problems with Krispy Kreme’s business outlook that were not discussed in the analyst reports.
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Perrigot, Rozenn, Guy Basset, and Brinja Meiseberg. "Resale prices in franchising: insights from franchisee perspectives." Journal of Product & Brand Management 25, no. 7 (November 21, 2016): 663–75. http://dx.doi.org/10.1108/jpbm-03-2015-0831.
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Purpose The purpose of this paper is to offer a novel perspective on resale pricing in franchising, i.e. from a franchisee perspective, by combining legal and managerial considerations in the European context. The objective is to assess franchisee perceptions regarding resale pricing in their chains. Design/methodology/approach The authors adopt a qualitative approach and use 46 in-depth interviews with franchisees covering retail and service industries in the French market. Findings Many of the interviewed franchisees believe that joining a franchise chain involves respecting the recommended resale prices. For some of the franchisees, in link with the chain uniformity, imposing uniform resale prices throughout the chain represents a strength, because customers who visit different stores within the franchise chain expect to find consistent pricing. Moreover, many franchisees consider that their franchisors have some know-how that they use to set correct resale prices, taking into account the profit margin. Research limitations/implications This research contributes to the literature on resale pricing in franchising, as well as the franchising literature in general, by combining legal and managerial considerations, adopting a franchisee perspective, covering retail and service industries and focusing on French and European markets. Practical implications This research can be viewed by franchise experts, franchisors, franchisees and franchisee candidates as a synthesis of resale price-related legal aspects, adopted practices and potential conflicts in franchise chains in the French market. It also highlights price-related practices to be avoided to prevent potential conflicts. Originality/value The subject of resale pricing in franchise chains is a hot topic, because of its link with customer attraction, chain uniformity, franchisor know-how, franchisee autonomy and the legal dimension.
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Lee, In, Choong-Kwon Lee, Sangjin Yoo, and Moo-Jin Choi. "A Decision-Making Model of Social Shopping in Franchising: Assessing Collaboration Strategies." International Journal of Information Technology & Decision Making 14, no. 02 (March 2015): 395–420. http://dx.doi.org/10.1142/s0219622014500898.
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Our paper develops a decision-making model of social shopping in franchising to understand impacts of various collaboration strategies on profits of a social intermediary, a franchisor, and a franchisee. Three decision variables are considered to make a daily deal promotion in a manner that results in optimal profits: the social intermediary's advertising expense, the franchisee's service quality expense, and the franchisor's financial assistance to the franchisee. The analysis shows that while system-wide collaboration generates more total profit for all three parties than the profits obtained when they seek to optimize their individual profit functions, the advantage of system-wide collaboration may depend on the parameter values of the profit function and collaboration cost. Since social shopping is just in the early stage of the business model development, most franchises and social intermediaries have not formed concrete collaboration strategies. Our model provides a methodology for different collaborative needs of the franchises and social intermediaries.
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Yeung, Ruth M. W., Maureen Brookes, and Levent Altinay. "The hospitality franchise purchase decision making process." International Journal of Contemporary Hospitality Management 28, no. 5 (May 9, 2016): 1009–25. http://dx.doi.org/10.1108/ijchm-08-2014-0399.
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Purpose The purpose of this study is to explore the hospitality franchise purchase decision-making process undertaken by franchisees in Macau as an emerging tourism destination and the role of national culture on purchasing a franchise brand and selecting a potential franchisor. Design/methodology/approach Semi-structured in-depth interviews with 18 franchisees in Macau, who purchased international and domestic hospitality franchise brands, were conducted to understand the feelings, attitudes and motivation of franchisees toward purchasing a hospitality franchise. Findings The study reveals that national culture can play an important role in franchisees’ decision-making process. Personal networks of friends and family (guanxi) are very influential in introducing and steering aspiring entrepreneurs toward franchising as an option to realize their ambitions, although there may be some limitations to franchisees with this approach. Guanxi was also found to be particularly relevant during negotiations and franchisees’ post-purchase reviews. Practical implications International franchisors should understand the importance of guanxi at different stages of the franchisees’ decision-making process. Franchisees should realize how a reliance on guanxi might negatively affect their efforts to undertake sufficient research to thoroughly evaluate the franchisor offer before contract signature. Originality/value A comprehensive hospitality franchisee decision-making purchase framework is developed, which includes the cultural context and cultural values. Guanxi, in particular, affects the franchisee decision-making process.
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Dada, Olufunmilola (Lola), Anna Watson, and David Kirby. "Entrepreneurial tendencies in franchising: evidence from the UK." Journal of Small Business and Enterprise Development 22, no. 1 (February 16, 2015): 82–98. http://dx.doi.org/10.1108/jsbed-11-2011-0021.
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Purpose – In spite of the important contributions of franchising to many economies, it remains unclear whether it truly provides a scope for entrepreneurial tendencies to flourish amongst franchisees. The purpose of this paper is to examine the debate surrounding the franchisee as an entrepreneur from the perspectives of the main contributors within the UK franchising sector, franchisors and franchisees, by analysing their entrepreneurial tendencies and the franchisee selection process. Design/methodology/approach – The paper is based on an empirical study using a focus group and a survey approach. Findings – The findings from this study demonstrate that franchisees have similar levels of entrepreneurial tendencies to franchisors. The results further indicate that franchisors appear to value entrepreneurial personalities within their franchised outlets, as demonstrated by their franchisee selection process. Originality/value – By providing an indication of the extent of the franchisee’s entrepreneurial tendencies, this study expatiates on major arguments in the franchising and entrepreneurship literature, which are also profound amongst practitioners in the fields of franchising and entrepreneurship.
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PHAN, PHILLIP H., JOHN E. BUTLER, and SOO HOON LEE. "LEARNING: KEY TO LEVERAGING THE VALUE OF A FRANCHISE." Journal of Enterprising Culture 01, no. 03n04 (January 1994): 367–82. http://dx.doi.org/10.1142/s0218495894000057.
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The organizational learning dynamics inherent in the franchise relationship provide the primary focus for this research. By encoding knowledge of the skills needed to suceed within the contractual arrangement, the franchisor can short cut the learning process for the franchisee. Once the franchising arrangement is established, both franchisees and franchisors have vested interest in maintaining high levels of organizational learning. In this research a model is presented that incorporates these learning dynamics, and relates them to entrepreneurial returns. Using a sample of heavy-duty truck franchisees, the relationship between different types of organizational learning and performance are explored. The results indicate that the franchising contract may actually act to limit the returns to the franchise relationship. Instead, it may encourage the franchisee to direct their learning efforts to skew returns in their favor. Successful franchisees were found to systematically value the franchise contractual and non-contractual information content more than less successful franchisees.
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Yoon, Donghun. "Improvement Plan for Problems of Franchise Industry in South Korea." Studies in Business and Economics 16, no. 2 (August 1, 2021): 267–81. http://dx.doi.org/10.2478/sbe-2021-0039.
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Abstract In this paper, the various problems of the franchise industry in South Korea are discussed and analyzed, and solutions to these based on the research results are presented and discussed. In this study, hypotheses were formulated for creating a model. Conflict, management, fairness, and performance were designated as variables, and how these variables affect one another was investigated. A research was conducted to verify the research model, reliability analysis was conducted through the Cronbach’s coefficient, and the study hypotheses were verified using factor and regression analyses. The conflicts between and the achievements of franchisors and franchisees were examined, along with the relationships among conflict, management, fairness, and performance. Management was subdivided into the overall management by the franchisor and the franchisee’s self-management and autonomy while fairness was subdivided into distribution, procedure, and interaction fairness between the franchisor and franchisee.
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Sonfield, Matthew C. "Progress and Success in the Development of Black-Owned Franchise Units." Review of Black Political Economy 22, no. 2 (December 1993): 73–87. http://dx.doi.org/10.1007/bf02689944.
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One path to black entrepreneurship is via the franchise. This article analyzes the basic issues of progress and success in the development of black-owned franchise units, with a focus on the measurement and promotion of such progress and success. Existing measures and promotional efforts are evaluated, and the perspectives of both the franchisor and the franchisee are probed. Secondary sources of data are analyzed, as are a series of in-depth telephone interviews conducted with a sampling of top executives of both large and small franchisor companies and also with a variety of black owners of franchise units. Recommendations and conclusions, for both franchisors and franchisees, are presented.
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Grygorenko, Tetyana M. "Franchising in Ukraine: The Realities and Prospects of Development in the Conditions of Martial Law." Business Inform 12, no. 539 (2022): 145–53. http://dx.doi.org/10.32983/2222-4459-2022-12-145-153.
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The article is aimed at studying the development of franchising in Ukraine in the prewar period, as well as its realities, features and prospects for development under martial law. It is noted that after the declaration of martial law on the territory of Ukraine and the beginning of the active phase of military actions, most of the business was actually paralyzed due to various factors and the impossibility of carrying out economic activities by enterprises located in the territory of hostilities. Instead, franchising is an up-to-date economic model for organizing and carrying out entrepreneurial activities that will allow businesses to survive and develop in this difficult time for the country. The accomplished analysis of the dynamics of franchising in Ukraine for 2017–2020 showed that franchising has been slowly but steadily developing in recent years, which justifies the annual increase in the number of franchisers and franchised facilities, an increase in the number of domestic and foreign brands in the franchise market. Precisely the increase in the share of Ukrainian franchises has been determined, since the franchise business model itself better takes into account local realities. The franchising created in Ukraine is more adapted to local market requirements; Ukrainian franchises are competitive, have a comprehensive business development program and strong support after the launch of a franchise project; the domestic franchising is directed towards further cooperation on a long-term basis. Based on a study by the financial portal Fibi, a rating of the best franchises in Ukraine in 2022 in trade, services and catering is compiled. It is also noted that during the wartime in Ukraine, some countries significantly simplified the rules for starting a business by Ukrainians, which facilitates the creation of a market for Ukrainian franchises abroad and the spread of national brands. It is defined that in order to support the Ukrainian economy during martial law, the government has introduced comprehensive changes to legislation and State-supported programs, which will help the development of entrepreneurship and the spread of franchising.
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Stanković, Milica, and Stevan Simić. "Franchising in the healthcare & fitness industry." Ekonomski pogledi 23, no. 2 (2021): 19–32. http://dx.doi.org/10.5937/ekopogl2102019s.
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The trend of development and expansion of healthcare and fitness franchises in the world is becoming a global phenomenon, having in mind the advantages that franchising as a business concept provides in relation to starting your own business. Healthcare and fitness clubs are increasingly deciding to enter the foreign market by using franchising as an internationalization strategy with the aim of minimizing costs and business risks. Most of the healthcare and fitness franchise companies come from the USA, but there is also a noticeable trend in the development of healthcare and fitness franchises on a global level. The paper analyzes healthcare and fitness franchise companies that are ranked on the list of top 500 franchises for 2020 according to magazine Entrepreneur. The aim of the paper is to determine the impact of internal factors, the size and the age of the franchise company, on the implementation of franchising as a strategy of internationalization for franchisors in healthcare and fitness industry.
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King, Brian L. "Caught in the middle: franchise businesses and the social media wave." Journal of Business Strategy 37, no. 2 (April 18, 2016): 20–26. http://dx.doi.org/10.1108/jbs-04-2015-0037.
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Purpose The purpose of this paper is to explore the impact of the Internet, and more specifically social media, on franchise business models. Design/methodology/approach A review of both franchising and Internet literatures enables the creation of a simple model that distinguishes between surface waves, highly visible innovations that influence a restricted set of franchise business models, and deep waves that have a broader and more long-lasting influence on all franchises. Findings The first Internet era had a surface wave, online selling, that impacted relatively few franchises, but the deep wave of the wide availability of information and training materials has had a broader and more sustained impact on franchise systems. Similarly, Web 2.0’s social element has created a surface wave, the shared economy for hotels and cars, that affects relatively few franchises, but the deep wave of user-rating Web sites and Apps promises to have a broader and more long-lasting influence. Research limitations/implications This paper enables researchers identify potential research topics, highlighting the need to determine the impact of social media on how consumers perceive quality and the influence this has on their ongoing behavior. Practical implications This paper helps practitioners understand how the Internet influences the competitive balance between franchised and non-franchised businesses. Hence, it will be of interest to any large organization that offers high quality decentralized products or services, as they typically either franchise or compete with franchised businesses. As well, for entrepreneurs considering investing in a franchise, this paper will help identify which business models are more sustainable in the face of Internet innovation. Originality/value The surface wave/deep wave model is a new approach to analyzing the long-term impact of the Internet on all decentralized businesses.
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Chen, Ye-Sho. "E-Entrepreneurship and Innovation in Franchising." International Journal of E-Entrepreneurship and Innovation 9, no. 1 (January 2019): 1–12. http://dx.doi.org/10.4018/ijeei.2019010101.
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Franchising has been a popular approach to growing a business. Developing an effective strategy of e-entrepreneurship and innovation for growing a franchise business and making it resilient is also getting popular. In this article, the authors show that building up a good “family” relationship between the franchisor, the franchisees, and the communities is the real essence of franchising, and the e-entrepreneurship and innovation strategy shall be designed to enhance and advance the “family” relationship. Specifically, the authors discuss the strategy of how to make e-entrepreneurship and innovation “meaningful” in franchising. Future trends on making franchises resilient, cyber security and sustainability are also discussed.
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Emerson, Robert. "Franchise Goodwill: Take a Sad Song and Make it Better." University of Michigan Journal of Law Reform, no. 46.2 (2013): 349. http://dx.doi.org/10.36646/mjlr.46.2.franchise.
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The end of a franchisor-franchisee relationship is often like a divorce, with the parties engaged in a heated battle over the ownership of the franchise goodwill. In this debate, the same franchisors or franchisees often change their positions on goodwill ownership depending on current needs. This Article analyzes cases in many areas of franchise law to determine why franchisors and franchisees engage in such inconsistent reasoning, what the consequences are for franchising, and if there are ways to produce a more logical and efficient form of analysis and debate. In addressing the most contentious issues of franchising, adherence by litigants and courts to a logical, systemic framework could improve the resolution process for individual cases and clarify standards of practice for all franchising matters. This Article proposes a standard intended to reduce major stresses in franchise relationships-the sad songs of franchising-by quickly and fairly resolving the ownership of goodwill.
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Alon, Ilan, Michèle Boulanger, Everlyne Misati, and Melih Madanoglu. "Are the parents to blame? Predicting franchisee failure." Competitiveness Review 25, no. 2 (March 16, 2015): 205–17. http://dx.doi.org/10.1108/cr-10-2014-0034.
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Purpose – The purpose of this study is to show how franchisor characteristics influence franchisee failure. To achieve this aim, we developed a heuristic model using the methodology and power of predictive analytics. Design/methodology/approach – The authors use data from the World Franchising Council’s and from the Small Business Administration (SBA). The data cover 271 diverse USA franchise chains that are present in both databases. Findings – The model predicts potential defaults of SBA-backed loans issued to American franchisees, and the authors identify 13 variables that help explain franchisee failure. Practical implications – The authors offer guidance for stakeholder groups – lenders, franchisors and franchisees – to minimize the risk of lending and business failure. Originality/value – The paper contributes to the franchising literature by considering parent firms’ characteristics to predict franchisee failure.
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Blancas-Peral, Francisco J., Ignacio Contreras, and José M. Ramírez-Hurtado. "CHOOSING A TRAVEL AGENCY FRANCHISE BY MEAN OF A GLOBAL COMPOSITE INDICATOR: AN APPLICATION IN SPAIN." Journal of Business Economics and Management 15, no. 1 (September 12, 2012): 153–73. http://dx.doi.org/10.3846/16111699.2012.689259.
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This paper highlights the complexity of the franchise partner selection process from a franchisee's perspective. The purpose of this article is, firstly, to propose the definition of a system of indicators which include all the relevant information which the potential franchisee should take into consideration when choosing a chain secondly, to obtain a global composite indicator for the construction of a ranking of franchisors. In order to illustrate the procedure, a sample of travel agency franchisors in Spain and a suitable database to quantify the indicators are considered. The paper concludes constructing a complete order of the franchisors in the travel agency industry. In addition, the results show the most important characteristics of franchisors that potential franchisees must take into account. The value of the paper is significant as it provides a practical frame – work for potential franchisees in the selection of franchisors.
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Ginting, Rika Githamala. "Legal Comparisons Regarding the Content of Franchise Prospectus in Legal System of United States of America, Australia, Indonesia For Legal Protection of Frait Recipients in Indonesia." Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences 4, no. 2 (May 25, 2021): 2779–90. http://dx.doi.org/10.33258/birci.v4i2.1987.
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The prospectus document is given as a consideration for the franchisee whether they want to participate in operating the franchise or not. Apart from being used as a medium to find out information about franchises, this prospectus is also a form of legal protection for franchisees. Article 7 of the Government Regulation on franchising regulates clauses that must be included in the prospectus. The regulations governing minimal clauses in this prospectus are quite minimal. Compared to the United States, which is the originating country for franchising and Australia, which follows the United States in regulating its franchises, Indonesia is still far behind in the preparation of its prospectus documents. The method used is the legal comparative research method because it is used to compare regulations in a country with other countries. The research results show that each prospectus minimum clause in Indonesia has its own objectives in terms of protecting prospective franchisees and franchisees. There are differences between the clauses that must be listed in the prospectus in the United States, Australia and Indonesia, where there are clauses that are regulated in the United States and Australia which are not regulated in the minimum clause of the prospectus in Indonesia, although there are differences, but there are also clauses that are the same regulated in the three countries, it's just that the explanation of the provisions has differences. Regarding whether Indonesia's prospectus is capable of, Indonesia's minimum clause has not been able to provide protection for franchisees in Indonesia.
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Weaven, Scott K., Debra A. Grace, Lorelle Frazer, and Jeffery Giddings. "PROCESSUAL ANTECEDENTS OF PERCEIVED CHANNEL CONFLICT IN FRANCHISING." Journal of Business Economics and Management 15, no. 2 (April 29, 2014): 316–34. http://dx.doi.org/10.3846/16111699.2012.711362.
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In this study, we develop and examine the network of relationships explaining perceived conflict in franchise relationships from a franchisee perspective. Our research contributes to the current knowledge of asymmetric exchange relationships through demonstrating the importance of a franchisee's expectations confirmation, relational trust and relationship satisfaction in franchisee assessments of network conflict. The goal of this paper is to empirically examine (1) the relationship between franchisee perceptions of information quality (information dissemination and information search) and the confirmation of franchisee performance expectations, (2) franchisee characterizations of their relationships with their franchisors in terms of relational sentiments such as trust and relational satisfaction, communication and conflict management, (3) the relationship between franchisee satisfaction and perceived conflict, and (4) the moderating effect of franchisee experience on the relationship between franchisee satisfaction and franchisee perceptions of conflict. Empirical results, utilizing a sample of 345 franchisees in Australia, present strong evidence for the support of nine of the ten hypotheses drawn from the conceptual model. Specifically, data reveal that in an effort to cultivate a network of cooperative and satisfied franchisees, franchisors should adopt strategies that promote the timely dissemination of relevant and meaningful pre- and post-entry information, open communication exchange, transparent conflict management systems and personalized support in accommodating individual franchisee needs.
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Medeiros Júnior, Josué Vitor, Miguel Moreno Añez, and Hilka Pelizza Vier Machado. "Understanding the Franchised Strategic Praxis from the Practice Established by Franchise System." Revista Ibero-Americana de Estratégia 11, no. 2 (August 1, 2012): 120–44. http://dx.doi.org/10.5585/ijsm.v11i2.1840.
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This article aims to analyze the perception of a franchise on building strategies located around practices experienced by referencing franchisor's standards and regional reality. There is a complexity in the relationship between franchisee and franchisor in a franchise system and its implications in the strategies developed by these actors. This qualitative research adopted the theoretical approach called Strategy as Practice, which seeks to understand the strategy considering its stakeholders (practitioners), practices established and incorporated in addition to the practice that represents the effective implementation of strategic actions, socially constructed and reconstructed. For data collection, in-depth open interviews were conducted with the owner of two franchise stores, located in a city in the Brazil´s Northeast. The data were analyzed and categorized according to feedback from the franchisee on how he responds to practices imposed by the franchise system. As a result, four categories were identified that represent relevant practices: workshops sponsored by the franchisor, the franchisee's annual planning, visiting consultants, and business strategies for sales. It was concluded that although there is considerable control of the franchisor on its franchisees, many of the practices of the franchise system are adapted and transformed in practice by the franchisee, often in a different way than was originally imposed. We emphasize the importance of strategy as practice approach in understanding the construction and interpretation of the strategy in a franchise system based on social relationships developed in this system.
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RAMÍREZ-HURTADO, JOSÉ M. "THE USE OF IMPORTANCE-PERFORMANCE ANALYSIS TO MEASURE THE SATISFACTION OF TRAVEL AGENCY FRANCHISEES." Revista de Administração de Empresas 57, no. 1 (February 2017): 51–64. http://dx.doi.org/10.1590/s0034-759020170105.
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ABSTRACT This study contributes to the limited literature on the satisfaction of travel agency franchisees. Specifically, it aims to identify strengths and weaknesses of the system from the perspective of the franchisee. This study would enable franchisors to identify areas in which franchisees are less satisfied. If franchisees are satisfied with numerous aspects that influence the franchisor-franchisee relationship, the latter may have a high degree of loyalty towards their franchisors and this would benefit the entire network. This article uses a variant of the classic importance-performance model from Martilla and James (1977) and others (Ábalo, Varela, & Rial, 2006; Picón, Varela, & Braña, 2011). The results show that the attributes travel agency franchisees feel more dissatisfied with are: chain advertising, ongoing support from franchisors, the initial franchisor support, delivery from the franchisors, and training provided by franchisors.
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Cvrtak, Katja Rakušić, Senka Borovac Zekan, and Karmen Pivčević Vranješ. "FRANCHISING AS A STRATEGY OF ENTERING FOREIGN MARKETS IN THE HOTEL INDUSTRY." SOCIAL SCIENCE DEVELOPMENT JOURNAL 7, no. 29 (January 15, 2022): 171–83. http://dx.doi.org/10.31567/ssd.532.
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Objectives: This paper aims to provide the theoretical basis of a franchise business with particular reference to the hotel industry. In addition, this paper aims to provide a detailed analysis of the world's most prominent franchises in the hotel industry and compare the situation in Croatia to the rest of the world. Methods: Almost half (47%) of all franchised hotels globally are owned by four large franchise chains: Accor, Marriott International, Hilton and InterContinental Hotels Group. In order to provide the essential theoretical knowledge about the franchise and franchise business, these four hotel franchises are analyzed. Results: Franchise business presents an excellent opportunity for future hotel owners. However, the analyzed hotel groups do not offer direct or indirect financing forms to help interested entrepreneurs enter into a franchise business. Conclusion: A franchise business is an attractive entrepreneurial alternative for entrepreneurs who have lack of knowledge and lack of capital. The franchise business in the hotel industry in the Republic of Croatia is present but not to the same extent as in other tourist developed countries. Therefore, it is necessary to design appropriate sources of financing that would facilitate entry into the franchise relationship.
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Wulandari, Retno. "Legal Protection of Franchisee in Franchise Contract Which Franchisor Unilaterally Terminates." NORMA 18, no. 1 (March 5, 2021): 1. http://dx.doi.org/10.30742/nlj.v18i1.1288.
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The Franchisor and the Franchisee's engagement tends to be based on the value of business profits alone. The document that becomes evidence (franchise agreement) tends to be poorly understood by the Franchisee, which can cause legal problems for him. One of the legal issues that can occur is the unilateral termination of the Franchisor to the Franchisee. Franchise agreements tend to be standardized, which comes from the Franchisor. These conditions make the Franchisee obliged to understand the agreement's contents well so that the franchise agreement is not terminated unilaterally by the Franchisor. This study aims to find out and analyze how legal protection for franchisee is based on franchise agreement. This research method is a normative legal research approach. The result of this study is unilateral termination of the franchise agreement will undoubtedly cause various legal problems for the parties bound in the franchise agreement.Keywords: Termination, Agreement, Franchise.
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Mainardes, Emerson Wagner, Vinicius Costa Amorim Gomes, Danilo Marchiori, Luis Eugenio Correa, and Vinicius Guss. "Consequences of customer experience quality on franchises and non-franchises models." International Journal of Retail & Distribution Management 47, no. 3 (March 11, 2019): 311–30. http://dx.doi.org/10.1108/ijrdm-09-2018-0211.
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Purpose The purpose of this paper is to verify the differences of the influence of customer experience quality on brand equity, brand trustworthiness, perceived quality, perceived risk and purchase intention of franchise customers and non-franchise customers. Design/methodology/approach After developing two questionnaires, the authors collected 523 responses from Brazilian franchise users (Questionnaire 1) and 574 of non-franchise users (Questionnaire 2). The authors proceed to a confirmatory factor analysis, based on covariance (CB-SEM). In order to compare the results between franchises and non-franchises, the authors have performed a multi-group analysis with support of AMOS. Findings The results show that customer experience quality of the franchise customers tends to result in a better purchase intention, giving indications of better quality and brand trustworthiness when compared to non-franchises. This comparison shows indications of the competitive advantage of franchises over non-franchises, justifying the investments that market companies have been making in the development of the customer experience quality. Originality/value The research contributes to the understanding of the impact of the customer experience quality on brand equity, brand trustworthiness, perceived quality, perceived risk and purchase intention that directly affects the performance of the franchises, empirically investigating the customer experience quality in the context of franchises using the adapted EXQ scale. Complementarily, it is compared with non-franchises to observe the differences between them.
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Tres, Guilherme Smaniotto, Marcel Lima Ribeiro Dantas, Diego Philipe de Oliveira Godeiro, and Afrânio Galdino de Araújo. "Strategic formulation process in pharmaceutical franchise." Revista Ibero-Americana de Estratégia 14, no. 4 (December 1, 2015): 78–92. http://dx.doi.org/10.5585/ijsm.v14i4.2260.
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Understand how the strategist formulates the organizational strategy is a key part to better understand how organizations achieve and maintain their competitive advantage. The aim of this study is to identify how the process of formulating the strategy from the individual's perspective is on a pharmaceutical industry franchises. Therefore, was considered the three dimensions of the strategy formulation process of De Witt and Meyer. The results confirm the existence of paradoxes in the strategic process, and suggest, for this sample, that executives formulate predominantly creative strategies, emerging and that there is a balance between evolutionary and revolutionary changes strategies. This article may, by identifying how franchisor and franchisees formulate their strategies, help to determining the appropriate strategies in the context of franchise networks.
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Fakos, Alexandros, and Maria Merino. "Multinational franchise entry and institutional quality: evidence from Mexican cities." Management Research: Journal of the Iberoamerican Academy of Management 15, no. 3 (August 21, 2017): 313–37. http://dx.doi.org/10.1108/mrjiam-06-2017-0754.
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Purpose The purpose of this paper is to document the extensive heterogeneity in institutions within countries and investigate which institutional factors are the most relevant for international brands. Design/methodology/approach The paper analyzes the entry patterns of three global fast-food franchise networks in 78 Mexican cities using discrete outcome models and ordered probit in particular. To summarize the quantitative importance of the results, the analysis includes also log-linear regressions with Heckman correction for the city observations without franchise presence. Findings Institutional factors are critical for an international franchisor in the decision to enter a new market. The most important institutional quality proxy for franchise entry is the rate of formal employment. The more the informal employment in a city, the lower the number of franchised stores and the lower the probability of brand presence in the city. Research limitations/implications Only three fast-food franchises are included in the paper, which limits the generalization of the results beyond the sector and Mexico. Another limitation of the methodology of this paper is that the authors estimate the effect of institutions on multinational franchise entry conditioning on market size. The issue here is that if institutions increase gross domestic product (GDP) per capita, then the demand for multinational franchises also increases. Such an effect cannot be captured if we condition on market size in our econometric models. This is particularly important for policy-makers aiming to quantify costs and benefits of reforms but not an important consideration for practitioners who might take institutions as given and are mainly interested in entry strategies that maximize profitability. Practical implications Institutional variables, and not only market factors, are critical to understand the entry decision of global franchisors in Mexico. In particular, the extent of informality is relevant in explaining the store location. It is necessary to understand how managers value the quality of institutions and which dimensions are most important for multinationals. In addition, the analysis should be conducted both at the national and sub-national level, given that within-country heterogeneity is prevalent in emerging markets. Social implications Cities must reinforce and communicate their institutional quality to attract foreign investment by franchises in particular. Originality/value We test several dimensions of institutional quality at the urban level as determinants of multinationals? decision to enter a city in a foreign market. We use novel administrative data at the municipality level and we employ econometric model that takes into account the discreetness of entry data and the fact that there are cities with no franchise presence. We control for sample selection, which comes from the zero number of stores in some city observations in the regressions.
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Selig, Gad J. "Franchising and Entrepreneurship: High Reward or High Risk?" New England Journal of Entrepreneurship 1, no. 1 (March 1, 1998): 14–22. http://dx.doi.org/10.1108/neje-01-01-1998-b002.
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According to the Department of Commerce, start-up, small, and family businesses are among the fastest growing areas of employment. Even under the best economic environment, starting a business is risky. To reduce the risks and to establish their own businesses, an increasing number of entrepreneurs and corporate converts are buying franchises. Franchising has enjoyed a major increase in popularity during the early 1990s, fueled largely by the growing pool of available candidates made possible by significant corporate and government downsizing. According to the Department of Commerce, franchising accounts for nearly one-third of all U.S. retail sales and employs over 7 million people. If an individual has the motivation, skills, capital, leadership, entrepreneurial spirit, and risk-taking attributes required to start and manage a business, franchising provides a structured alternative to accomplish this objective. Franchising encompasses both high risks and high rewards. While it is not for everyone, franchising represents a method to start and/or transition into your own business. This refereed article describes the why, what, and how of franchising. It discusses the driving forces for franchising from both the franchiser's and franchisee's perspective, what it takes to be a franchisee, how to become an educated businessperson, what to do once you have selected a franchise, the do's and don'ts, the risks and rewards, and how to sell a franchise.
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Perrigot, Rozenn, Andrew Terry, and Cary Di Lernia. "Good faith in franchising." International Journal of Retail & Distribution Management 47, no. 3 (March 11, 2019): 246–61. http://dx.doi.org/10.1108/ijrdm-02-2018-0043.
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PurposeThe relational nature of franchising flowing from the contract between franchisor and franchisee which enshrines a close, continuing relationship raises the issue of good faith. While there are academic papers analyzing good faith, these do not capture the practical understanding and expression of the concept and the manner and application in which it operates in the real world of franchising. The purpose of this paper is to assess how good faith is defined and understood by franchise practitioners – franchisees, franchisors and their legal advisors.Design/methodology/approachThe authors have adopted a qualitative approach by conducting and analyzing a series of 18 in-depth interviews with franchisees, franchisors and lawyers specializing in franchising.FindingsThe findings show that good faith is particularly important in franchising because of the disparity in the knowledge and power of the parties. They suggest that good faith is not only a legal notion but also a notion that is linked to the personal relationship between the franchisor and its franchisees. It then plays an important role in terms of management of this relationship and of the system as a whole. Moreover, they demonstrate that there is not one single shared understanding of good faith amongst franchising practitioners. Indeed, franchisees, franchisors and specialist franchise lawyers suggested that good faith can refer to transparency, trust, loyalty, fairness and equity amongst the franchisees, fair play, frankness, respect, ethics, kindness, “best efforts” and personalities.Originality/valueThe originality of the research lies in the fact that good faith is examined through the voice of franchising practitioners who explain how they define and understand good faith rather than through a detached academic lens.
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Cordobés Madueño, Magdalena, and Pilar Solde. "Management Control in Inter-organizational Relationships: The Case of Franchises." Innovar 25, no. 58 (October 1, 2015): 23–36. http://dx.doi.org/10.15446/innovar.v25n58.52357.
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There is great interest in the role of management control on theoretical and practical developments within the field of Inter-organizational Relations. This research aims to contribute at verifying how relationships between firms affect the management control tools used, as illustrated in a specific case: the relationship between the franchisor and its franchisees, which has not received much attention to date. As indicated by previous research, case studies can be helpful to determine the factors affecting the type of management control tools that should be established to manage inter-firm relationships.Results have found that the franchisor uses quantitative control mechanisms in order to avoid common types of opportunistic franchise behavior related to royalty payments and other financial requirements, as well as qualitative tools to assure the fulfilment of agreement-related conditions regarding knowhow, to resolve unexpected non-economic problems and to encourage personal relationship and trust. This study also provides an outline on franchisor-franchisee relationships in the model proposed by Van der Meer-Kooistra and Vosselman (2000). To test this model, the franchisor's perspective (outsourcer) has been taken into account as performed when building the model. Findings indicate that this relationship shows many similarities to the pattern based on bureaucracy and a few similarities to patterns based on trust.
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Suleman, Dede. "Keuntungan yang di dapat dari mengembangkan usaha dengan system franchise (Studi kasus di Indonesia)." Jurnal Doktor Manajemen (JDM) 2, no. 1 (December 30, 2019): 1. http://dx.doi.org/10.22441/jdm.v2i1.6812.
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AbstractAbstract: one method to be able to develop a business that has run well with fast time by using a franchise business system where there will be a relationship between the franchisor and the franchisee. The franchisor is obliged to provide support and franchisees with an obligation to pay fees. This gives a beginner franchisor an overview of rights and obligations and understands the potential of developing a business with a franchise system in his business. when the franchise business is running there are several other income that the franchisor will get as the owner. in this case the results of this study are collected through group discussion (Franchise and Licensing) discussions that focus on information about the potential income of the franchisor. The results show that aside from the self-owned business profits there are also other franchisor sources of income that can be fostered from their franchisees; Other income is royalties, franchise fees, advertising costs, material purchases. In the findings of discussion income is the largest percentage of revenue contributors from the purchase of raw materials by the franchisee to the head office or owner of the franchiseKeywords Franchise, Royalty fee, franchise fee, marketing fee, purchase of raw materials AbstrakAbstrak: salah satu metode untuk bisa mengembangkan usaha yang sudah berjalan baik dengan waktu cepat dengan menggunakan sistem bisnis waralaba dimana akan ada hubungan antara franchisor dan franchisee. Franchisor berkewajiban untuk memberikan dukungan dan franchisee dengan kewajiban untuk membayar biaya. Ini memberikan gambaran pemilik waralaba pemula tentang hak dan kewajiban dan memahami potensi mengembangkan bisnis dengan sistem waralaba dalam bisnisnya. ketika usaha waralaba sudah berjalan ada beberapa pendapatan lain yang akan di dapat oleh franchisor sebagai pemilik. dalam hal ini dari hasil penelitian ini dikumpulkan melalui diskusi kelompok anggota (Waralaba dan Lisensi Indonesia) yang berfokus pada informasi tentang pendapatan potensial franchisor. Hasilnya menunjukkan bahwa selain dari keuntungan bisnis milik sendiri ada juga sumber pendapatan franchisor lain yang dapat dipupuk dari franchisee mereka; Penghasilan lainnya adalah royalti, biaya waralaba, biaya iklan, pembelian materi. Dalam temuan diskusi pendapatan adalah persentase terbesar dari kontributor pendapatan dari pembelian bahan baku oleh pemegang waralaba ke kantor pusat atau pemilikfranchiseKata KunciWaralaba, biaya Royalti, biaya waralaba, biaya pemasaran, pembelian bahan baku