Is the franchising model attractive to independent small business operators?

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Title Is the franchising model attractive to independent small business operators?
Author Bennett, Stephen; Frazer, Lorelle; Weaven, Scott Keith W
Publication Title 2009 International Society of Franchising 23rd Annual Conference Proceedings
Editor Mark Grunhagen
Year Published 2009
Place of publication florida
Publisher H. Wayne Huizenga School of Business and Entrepreneurship
Abstract A shortage of suitable franchisee applicants has been identified by franchisors as a major hindrance to franchise sector growth in Australia. However, there has been little investigation into this issue within organisational choice research. This represents an important gap in the literature. In order to explore the issue of franchisee shortage, it was necessary to determine why individuals chose to enter franchising as a franchisee or why they chose to become small independent business operators. Interviews with 10 franchisees and 10 independent small business operators were conducted in Brisbane, Australia. The interviews investigated the characteristics of franchisees and independent small business operators, and looked for differences between the two groups. Whilst their risk profiles were similar, franchisees were less likely to conduct much research prior to making a business choice. Franchisees considered ongoing support, the provision of training and a proven system with established processes to be very important. Alternatively, independent small business operators preferred to exercise absolute control over their businesses, relying on knowledge and skills gained in prior employment and valuing their independence. Franchising appeared to offer the dual benefits of facilitating entry into business in an unfamiliar industry for inexperienced operators as well as providing a vehicle for growth and expansion for investors with previous corporate management experience. Opportunities for franchisors to attract independent business operators include addressing the negative image attached to franchising and demonstrating that the franchise system is not restrictive for entrepreneurs.
Peer Reviewed Yes
Published Yes
Publisher URI
Copyright Statement Copyright 2009 ISOF. Use hypertext link to access the publisher's website. The attached file is posted here in accordance with the copyright policy of the publisher, for your personal use only. No further distribution permitted.
Conference name 23rd International Society of Franchising Conference
Location San Diego
Date From 2009-02-12
Date To 2009-02-14
Date Accessioned 2009-09-10
Language en_AU
Research Centre Griffith Institute For Tourism
Faculty Griffith Business School
Subject Small Business Management
Publication Type Conference Publications (Full Written Paper - Refereed)
Publication Type Code e1

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