Critical Factors which Assist or Hinder the Achievement of the Four Franchising Imperatives

Abstract

The economic and social contribution of franchising is widely reported. However, little research has examined the factors influencing the achievement of the four franchising imperatives (i.e., unit growth, uniformity, local responsiveness and system-wide adaptation). Based on the seminal work of Bradach (1995), the four franchising imperatives were found to be key elements driving franchise success. This paper will explore the four franchising imperatives within the context of multiple-unit franchising. This represents and important gap in the organizational choice literature. The purpose of this research was to identify those factors which may enable or hinder the achievement of the four franchising imperatives in plural franchising arrangements. An exploratory convergent interviewing approach was used to collect data from a sample of 16 respondents. A series of eight propositions derived from the qualitative stage of this research are presented for later quantitative testing. The results suggest that the four franchising imperatives are best achieved through the provision of rewards systems and business growth models, professional development training, timely communication with head office staff, and allowing informal flexibility beyond contract provisions. Key factors that may hinder the achievement the four imperatives include a lack of franchisor-initiated innovation and chain franchisee decision-making involvement, franchisee personality and costs of compliance.