The growth and performance of franchise systems: Company versus franchisee ownership

A study on the key factors influencing international franchisors’ choice of entry modes into China

“…This result indicates that risk spreading is a significant factor influencing the international franchising firms' entry mode choice when entering into the Chinese market. This finding is consistent with the existing literature (e.g., James and Gary, 2003; Anderson, 1984;Gastrogiovanni, Justis and Julian, 1993). Fig.…”

“…However, one limitation of the proportion difference test is that the authors did not control other important influencing factors for entry mode choice. This result is not consistent with the findings of Anderson andGatignon (1986), Herrman andDatta (2002), and Whitelock (2002), showing that experienced international franchising firms prefer other types of entry modes to the direct international franchising one.…”

The effect of knowledge complexity on the performance of franchise systems in the service industries: an empirical study

“…In this way, Anderson (1984); Martin (1988); Norton (1988a, b), and Sorenson and Sørensen (2001) use sales as a franchise system performance metric. Castrogiovanni et al (1993) as well as Martin and Justis (1993) employ the total number of outlets, while Bradach (1998) and Caves and Murphy (1976) use both metrics.…”

“…According to Anderson (1984); Bradach (1998), and Sorenson and Sørensen (2001), each outlet's profit is the best performance indicator. However, the problems raised as regards accessing data concerning profits obliges one to seek alternative revenue and cost-associated metrics.…”

Proposing new variables for the identification of strategic groups in franchising

“…Own units versus franchised units Bradach and Eccles (1989) The own and franchised units have positive impacts of administration each one with others Lafontaine and Kaufmann (1994) When limited resources exist, during the first phases of growth of the chain, greater necessity of franchised units exists Martin (1988), Dant et al (1992) They offer a relationship of advantages to maintain franchised units Norton (1988b) They show the conditions in which is more appropriate the own units in front of the franchised ones Thompson (1992) The own units are usually located in urban and/or high population density areas Anderson (1984), Bracker and Pearson (1986) Differences don't exist between the sales of own and franchised units Shelton (1967) The sales in franchised units overcome to the own ones Thomas et al (1990) The transformation of franchised in own units is usually given when the first ones reach high sales Calderón (1998) She analyzes the explanatory variables that influence the choice between own and franchised units Cliquet and Croizean (2002) They offer advantages and inconveniences of maintaining own and franchised units Huszagh et al (1992) There are two reasons that impel to the internationalization: age of the chain and number of operative units Kedia et al (1994) The managers impel internationalization by reasons of growth and benefits Hackett (1976) The reasons for the internationalization are to take advantages in markets of great potential and fame Kedia et al (1995), López and González (2001) Market saturation, disposition of intangible resources and the experience in the control system are the main reasons for the internationalization Aydin and Kacker (1990) The reasons of the American managers that don't go abroad are: the perception of wide opportunities of growth in their country, lack of international experience and limited financial resources Zietlow (1995) The best form of consenting to the franchising internationalization is the master franchising Chan and Justis (1993) The great regulation of the franchising and high level of litigations in USA make more difficult the entrance that in Europe Alon and Banai (2000) Franchising in Russia is more appropriate for chains which have more resources with aspirations of growth and long term benefits Welsh et al (2006) The authors develop a conceptual model relating international retail franchising to its stakeholders. A revie...…”