Expansion Through Multiple Unit Franchising : Australian Franchisors Reveal their Motivations

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Title Expansion Through Multiple Unit Franchising : Australian Franchisors Reveal their Motivations
Author Weaven, Scott Keith W; Frazer, Lorelle
Journal Name International Small Business Journal
Editor Robert Blackburn
Year Published 2007
Place of publication United Kingdom
Publisher Sage Publications
Abstract In this article we explore strategic reasons justifying the recent emergence of multiple unit franchising arrangements within Australia from the perspective of the franchisor. Extending resource contraints, efficiency and agency rationales explaining organisational choice, the present study suggests that franchisors encourage franchisee subsystem development as it affords strategic, operational and performance advantages. Dimensions including agency cost minimization, system wide uniformity, franchise system brand value, reward strategies, and subsystem unit (geographical) proximity and intra-system competition, were found to be important. Less important elements included ownership redirection, system adaptability, local market innovation and franchisee opportunism motives. Given the exploratory nature of this research, in-depth interviews with 23 franchisors were used to collect data. The preliminary research evidence has important implications for franchising theorists and practitioners and, in addition, provides a platform on which future research can be developed to further understand multiple unit franchising arrangements.
Peer Reviewed Yes
Published Yes
Volume 25
Issue Number 2
Page from 173
Page to 205
ISSN 0266-2426
Date Accessioned 2007-11-15
Language en_AU
Research Centre Griffith Institute For Tourism
Faculty Griffith Business School
Subject Marketing and Market Research
URI http://hdl.handle.net/10072/16984
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

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