Exploring Brand Extensions in the Context of Franchising in Australia

Abstract

The brand concept is at the very core of franchising success, as it is the aspect of the business that allows for the franchisor's reputation and goodwill to be transferred. However, there has been minimal literary discussion on the importance and use of brand leverage as a growth mechanism. More specifically, there has been no direct primary research involving franchise brand extensions and consumers’ perceptions of these. This conceptual study, therefore, explores and compares consumer perceptions of brand extensions within the non-franchise sector and the franchise sector, with a view towards setting an agenda in this important area. Pilot data drawn from 15 semi-structured interviews were conducted and analysed, and the results reveal three unique findings that are categorised under (i) quality perceptions transfer; (ii) difficult extensions, and (iii) brand extension attitude override. In doing so, a solid foundation for further research in this area is provided.