Why Franchisors Discontinue Franchising but Continue Operating

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Title Why Franchisors Discontinue Franchising but Continue Operating
Author Frazer, Lorelle
Journal Name International Small Business Journal
Editor Clive Woodcock
Year Published 2001
Place of publication UK
Publisher Sage Publications
Abstract This paper provides a preliminary analysis of the strategic managemnent decision of franchisors to discoritinue franchising arrangements in favour of an alternative method of ownership. A sample of 14 ex-franchisors and seven of their ex-franchisees was interviewed to gather data on reasons and outcomes of the decision to cease franchisinig arrangements. The data analysis indicates that in general the firms were attracted to franchising because of resource constraints. However, the decision to adopt an alternative ownership strategy appears to be based on problems associated with human capital such as difficulties in motivating anid monitoring franchisees and economic factors such as the downturn in the economy during the 1990s.
Peer Reviewed Yes
Published Yes
Publisher URI http://isb.sagepub.com/cgi/content/abstract/19/3/29
Copyright Statement Copyright 2001 Sage Publications. Reproduced in accordance with the copyright policy of the publisher. First published in International Small Business Journal. This journal is available online: http://isb.sagepub.com/content/vol19/issue3/
Volume 19
Page from 29
Page to 38
ISSN 0266-2426
Date Accessioned 2002-04-09
Language en_AU
Faculty Griffith Business School
Subject Small Business Management
URI http://hdl.handle.net/10072/3957
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

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