Making Franchising Work: A Framework Based on a Systematic Review

Abstract

There is a large and fragmented literature that examines the nature of franchising. This paper aims to collect all the empirical evidence on the factors that make franchising work and to integrate this evidence in a framework. A narrative synthesis was performed of 126 peer‐reviewed empirical journal articles. This review shows how the outcomes of franchising are determined by five major clusters of factors: ownership structure, business format design, contract design, behavior of the franchisor and the franchisee and their interaction, and the age and size of the system and its units. It identifies what franchisors and franchisees need to do to be successful and which evidence gaps and conflicting results remain. To yield better outcomes for both the franchisor and the franchisee, they should work on a recognizable brand name and a good working relationship; in addition, they should have suitable skills and attitudes as well as contractual exclusive territories. For further improvement of franchisee outcomes, high‐quality franchisor support, decentralized decision‐making, selection tools and fair contracts are essential. The effects of a high franchise proportion, active ownership, knowledge exchange and standardized operating instructions are contingent on other structural and contextual factors in the system. Conflicts and tying should be prevented. Hardly any research has been undertaken into which franchise designs are valued by customers. The authors have launched a research agenda for further research, from various theoretical perspectives, into the interactions between system elements, actors and contexts.

The Meaning, Antecedents and Outcomes of Employee Engagement: A Narrative Synthesis

“…Following Nijmeijer et al . (), we first analysed the key design characteristics of each study and the operationalization of the variables involved. Next, based on the research questions, we created factor clusters relating to each aspect of our synthesis and, within each of these, generated sub‐clusters through thematic analysis.…”

Percepções de valor e elementos estruturantes das microfranquias

“…De fato, o desempenho do franqueado está relacionado com o suporte recebido do franqueador. Com isso, caso um franqueado consiga se afiliar a uma rede de franquias em que o franqueador e os franqueados tenham experiência para poder ajudá-lo, a chance de o negócio falhar é menor (Nijmeijer, Fabbricotti, & Huijsman, 2014). Logo, o ownership do franqueado deve ser considerado como controle, pois o fato deste ter uma percepção menor do suporte e da marca pode ser devido ao baixo ownership das microfranquias e não necessariamente devido à modalidade do negócio.…”

Agricultural franchising and contribution to achieving objectives of the EU common agricultural policy

“…Number of franchises grows every day, bearing in mind that franchising offers better financial results and greater chance of survival than alternative organizational forms (Nijmeijer et al, 2013). By entering the world of franchising, we get complete business model that should be applied, and the risk is much lower than with starting an independent business.…”

“…It is expected that franchising will provide better financial performances, supportive business environment and/ or a greater chance of survival than the alternative organizational forms (Nijmeijer et al, 2013). There is an increasing need for innovation in the franchise concepts in accordance with current trends in the global environment.…”