Franchisee-franchisor compatibility: It's a two-way street

Abstract

This paper aims to extend the current literature on franchisee-franchisor compatibility. The main focus of previous literature has been on franchisee selection and the importance of recruiting and selecting suitable candidates. However, the issue of choosing a suitable franchisor has been largely neglected, although it is argued here that franchisees need to be proactive in choosing a compatible franchisor. It is also argued that franchising provides a means of overcoming the problems associated with independent small business ownership, including human capital deficiencies. This paper proposes a model of competencies and qualities of an ideal franchisor as a basis for potential franchisee consideration.