An introspective examination of single-unit versus multi-unit franchisees

Abstract

Multi-unit franchisees (MUFees; i.e., franchisees that operate more than one outlet within a franchise system) represent a pervasive and even dominant form of franchise ownership in many sectors. However, much of the franchising literature has been developed with a focus on single-unit franchisees (SUFees). The goals of this article are to introspectively compare MUFees and SUFees in terms of (1) the factors franchisees consider important when initially buying a franchise, (2) how these considerations change when SUFees become MUFees, and (3) how SUFees and MUFees characterize their relationships with their franchisors in terms of relational constructs. Our data reveal significant differences between these two groups in terms of purchase motivations as well as relational sentiments.Importantly, franchisor preferences for multi-unit franchising notwithstanding, it is the SUFees that characterize their dyadic relationships with their franchisors as more relational as compared to their MUFees counterparts.