Contrasting the Four Franchising Imperatives Across Hybridized Governance Models: A Preliminary Investigation

Abstract

Although multiple-unit franchising is a popular and pervasive retailing strategy throughout the world, there is a paucity of prior research examining the factors influencing the achievement of the four franchising imperatives (i.e., unit growth, uniformity, local responsiveness and system-wide adaptation) within the context of these hybridized arrangements. Exploratory interviews were conducted (16 franchisees) and results suggest master franchising realizes the strategic imperatives of unit growth, system uniformity, system-wide adaptation and, (partially) local responsiveness. Both master franchising and area development arrangements enabled system uniformity, whilst, incremental and area representative arrangements promoted system-wide adaptation. Implications for practitioners and future academic researchers are presented.