LITRATURE REVIEW:

1. BY:ILLAN ALON(University of Agder, Kristiansand, NORWAY

B. ELANGO(College of business, Illinois State University, Illinois, USA)
The purpose of the paper is to examine the factors associated with franchisors going
public using signaling theory. Listing on the stock market is a sign that the business
concept has reached a threshold level of acceptance and success. To increase the
relevance of the study to practitioners the authors focus on franchising-specific
controllable variables. This study uses a sample of 2134 franchisors from US drawn
from a survey by Entrepreneur magazine during the year 2015-2016. Binominal
logistic regression models are used for analysis of the data. Findings indicate that time
to franchise, international operation, franchise association affiliation, disclose and
extent of top management commitment are factor positively related to the likelihood
of a franchisor being publicly listed.
2. BY: Anne Marie Doherty (School of Marketing, Supply and Strategy, Glamorgan
Business School, University of Glamorgan, Pontypridd, UK)
The purpose of the paper is to examine the factor that motivate the international retail
company to choose franchising as a method of entering international market. He
employed a qualitative methodology and a multiple case study design. Six major UK-
based international fashion retail from empirical basis for the work. And finds the
motivating influence to be a combination of both organisational and international
retailing experience, availability of financial resources, presence of a franchising retail
brand, company restructuring and influence of key managers emerges as the
organisational factors while environment influences are revealed as opportunistic
approaches, local market complexities, domestic competitive pressures and
availability of potential franchise partner.
3. BY: Muhammad Asad Sadi (University of management & marketing, King Fahd
University of petroleum & Mineral, Dhahran, Saudi Arabia)
The purpose of the paper is to examine the extent of interest in franchising among
small and medium sized enterprises (SMEs) in the kingdom of Saudi Arabia and to
identify attitude towards the mode of operations success held by practitioners. A
literature review is to explain franchising and the reasons for its adoption by SMEs.
Secondary information obtained from published sources form the basis for a summery
of condition in Saudi Arabia. In addition, a survey questionnaire was administered to
a sample of managers in the Eastern Province of Saudi Arabia to determine their
views. And got a finding that, Franchising is deemed to be a suitable business format
for SMEs and franchising support system contribute to its success, although some
problem are acknowledged. There good prospects for further growth, but also
obstacles to overcome.
4. BY: Rosa Forte (Faculty of Economics, University of Porto, Porto, Portugal) And
Joao Carvalho(University of Porto, Porto, Portugal)
Purpose:- Both franchising and internationalisation are important subject of study, but
in the existent literature little attention has been given to these topics combined. The
purpose this paper is to examine the internationalisation through franchising, using as
 a case study the internationalisation process of parfois, a specialised retail brand based
in Northern Portugal, and operation of the fashion accessories business. Methodology
used is a case study based on the information collected from various sources,
including the company’s website, the World Bank database, some news report about
Parfois, and also from interviews with those responsible for internationalisation of
Parfois. The authors have identified a clear pattern in internationalisation process: the
firm is willing to opne its store in European market, where it feels comfortable,
allowing franchises to assume the risk in other world regions, with particular
relevance for the Middle East and Eastern Europe.
5. BY: Firdaus Abdullah, Mohd Rashidee Alwi, and Voon Boo Ho (University of
technology MARA Malaysia, Kota Samarahan, Malaysia) and Nagaraja lee
(International Medical University Malaysia, Kuala Lumpur Malaysia)
This paper attempt to explore different approaches of franchisee satisfaction within an
academic setting , develop and validate a new measuring instrument, examine the key
factor and the intention to remain in the network, and eventually manage the franchise
network for long‐term continuity. The survey instrument was drawn from a multi‐
stage process involving extensive review of literature, focus group interviews, pilot
testing and validation by the experts before being administered to a sample population
consisting top managers of franchised colleges. The new instrument was empirically
tested for unidimensionality, reliability and validity using both exploratory and
confirmatory factor analysis. The findings suggest five dimensions of franchisee
satisfaction namely social interaction, service support, financing, assurance and
competence. Results also indicate that the dimension “competence” which relates to
possession of required skills, knowledge and the right attitude to perform franchise
services has significantly influenced the overall satisfaction.
6. BY: Anne Marie Doherty (Glamorgan Business School, University of Glamorgan,
Pontypridd, UK) Nicholas Alexander (Glamorgan Business School, University of
Glamorgan, Pontypridd, UK)
As international retailers continue to employ franchising as a major method of market
entry, the control of these international retail franchise networks becomes of
significant importance. The aim of this paper is to examine the methods by which
UK‐based international fashion franchisors control franchisees and their international
franchise businesses. The paper employs a qualitative methodology and a multiple
case design. Six UK‐based fashion retailers with international franchise operations
form the empirical basis of the study. The franchise contract, support mechanisms,
franchise partner selection, the franchise relationship and the use of master/area
franchising were found to be the major methods by which international retail
franchisors exert control over their franchise networks. While coercive and non‐
coercive sources of power were identified in the form of the franchise contract and
support mechanisms, the paper also identifies sources of relationship power and
organisational power.
7. BY: Richard C. Hoffman (Interim dean and professor of management in the
Perdue School of Business at Salisbury University) Joel F. Kincaid (Associate
professor of economics in the School of Business and Economics at Winston Salem
State University) John F. Preble (Associate professor in the Department of
Business Administration at the University of Delaware)
Consistent with traditional internationalization theory, we argue that, when a firm
chooses franchising to achieve market penetration, market propinquity/similarity
matters. Using a modified gravity model, we examine six country characteristics
believed to enhance the flow of franchise activity among 39 nations. Our findings
support the notion that market propinquity facilitates the flow of franchises between
nations. Franchise expansion is greatest when the home and host nations are similar in
terms of geography, culture, media availability, and political risk. The management
implications of these findings are discussed in detail.
8. BY: Barry Quinn (Barry Quinn is a Lecturer in the School of Business, Retail and
Financial Services, University of Ulster at Coleraine, Northern Ireland.) Nicholas
Alexander (Nicholas Alexander is a Professor and Head of School, in the School of
Business, Retail and Financial Services, University of Ulster at Coleraine,
Northern Ireland.)
Franchising has become a major driving force in the globalisation of service
businesses. Likewise, international retailing has become an important feature of
global distribution systems. This has been brought about through changing socio‐
economic patterns, favourable political and cultural environments, and a shift from
manufacturing to service based economies. Both developments have contributed to
the globalisation of marketing activity. However, there remain fundamental
conceptual inconsistencies in the literatures that explain the development of
international retailing and the internationalisation of franchise operations. This paper
considers the use of franchising in the internationalisation of retail operations and
places the experience of retail operations that use the market entry strategy within the
context of other franchising activity. The paper evaluates the literature on the
internationalisation of retailing alongside the literature on franchising. It identifies the
different perspectives that have emerged within the two literatures and conceptually
reconciles the contradictions that exist.
9. BY: Scott Weaven (Asia‐Pacific Centre for Franchising Excellence, Griffith
Business School, Griffith University, Gold Coast, Australia) Lorelle Frazer (Asia‐
Pacific Centre for Franchising Excellence, Griffith Business School, Griffith
University, Meadowbrook, Australia) Jeff Giddings (Graduate Program in Dispute
Resolution, Griffith Law School, Griffith University, Nathan, Australia)
Although Australian franchising sector regulation promotes system disclosure and
provides for mandatory conflict mediation, there is some concern that inequities exist
within the conflict management process. From 2006 to 2008 no less than four
government inquiries into franchising took place in Australia in an attempt to resolve
problems occurring in the sector. A major issue was that of the perceived imbalance
 of power in the franchisor‐franchisee relationship, which often results in conflict
between the two parties. The purpose of this paper is to extend the conflict literature
in dyadic exchange relationships through investigating the causes of conflict from the
franchisor and franchisee perspectives. Exploratory research is undertaken to identify
the major causes of franchising conflict. Face‐to‐face interviews are conducted with
24 franchising experts, such as lawyers and mediators, to draw upon their
considerable experience in the sector. The key findings suggest that a lack of due
diligence is associated with the formation of unrealistic expectations which increases
the potential for future relational conflict. Although franchising experience impacts
upon operational approaches and conflict, the role played by third parties and market
conditions both appear to exacerbate dissatisfaction in franchise systems.
10. BY: Eugene Y. Roh (Department of Marketing and Hospitality Service
Administration, College of Business, Central Michigan University, Mount
Pleasant, Michigan, USA) Ji‐Hwan Yoon (College of Hotel and Tourism
Management, Kyung Hee University, Seoul, Korea)
The primary purpose of this research is to investigate franchisees' satisfaction based
on franchisors' pre‐opening support, central purchasing, congeniality and ongoing
business support. The sample was drawn from ice cream franchising operations in
Seoul, South Korea, and its vicinity. Personal interviews were conducted, followed by
a self‐administered questionnaire. The franchisees learned about their business
opportunities through friends and relatives. The brand recognition by the consumer is
the major motive for franchisees to engage in franchising. While franchisees are least
satisfied with their franchisors' ongoing business support, they are most satisfied with
central purchasing s upport from the franchisor.
11. BY: Juan Gámez‐González (University of Seville, Sevilla, Spain) F. Javier Rondan‐
Cataluña (University of Seville, Sevilla, Spain) Enrique C. Diez‐de Castro
(University of Seville, Sevilla, Spain) Antonio Navarro‐Garcia (University of
Seville, Sevilla, Spain)
This work proposes to test the C‐40 deontological code of collective orientation
specifically for franchise associations. The literature review revealed a lack of studies
about this type of codes.This code adopts a semi‐normative approach in trying to
standardize what form a deontological code of a franchise association should take.
The study has been developed from an international perspective, making easier its
spread and generalization. Furthermore, a novel methodology in this area has been
applied to test the code: “The Experton Theory”. As a consequence, from the review
of ethical and deontological codes from franchise associations of 46 countries, some
associations' statutes and the laws about franchising in some countries, 29 topics were
identified. Additionally, 11 more have been added to these contents, making 40 items
which conform with what should be integrated into whatever franchising
deontological code.
12. BY: Levent Altinay (Department of Hospitality, Leisure and Tourism
Management, The Business School, Oxford Brookes University, Oxford, UK)
 Catherine L. Wang (Department of Hospitality, Leisure and Tourism Management,
The Business School, Oxford Brookes University, Oxford, UK)
To investigate the role of prior knowledge in the international franchise partner
recruitment process and to evaluate how cultural distance influences the role of prior
knowledge in this process. A single embedded case study of an international hotel
firm was the focus of the enquiry. Interviews, observations and document analysis
were used as the data collection techniques. Findings reveal that prior knowledge of
the franchisor enables the franchisor to coordinate more efficiently with prospective
partners. However, the case study firm experienced a great deal of cultural distance in
different country markets. The greater the cultural distance, the more challenges the
firm has to face in terms of upgrading and adapting its prior knowledge to local needs.
13. BY: Sandra M. Huszagh, Fredrick W. Huszagh, International Marketing Review
ISSN: 0265-1335
Publication date: 1 May 1992
Suggests that the strategic advantages of experience, scale economies, product
differentiation, capital requirements, and location are important determinants of
international franchise expansion, but are slowly being diminished by technological
and capital market innovations. Explores this theme from the perspectives of
competitive strategy and economic theory of the firm. Based on these perspectives,
hypotheses are developed and tested with a large sample of US franchisors at two
points in time. Results show that franchise firms′ strategic advantages derived from
experience, scale economies and location differ for more international firms compared
to nationally‐focused firms. Results also provide insights to the extent to which these
differences are moderated by technological and capital market innovations occurring
over time.
14. BY: Audhesh K. Paswan (Marketing and Logistics, COB University of North
Texas, Denton, Texas, USA) Derrick D'Souza (Department of Management,
University of North Texas, Denton, Texas, USA) Rajasree K. Rajamma
(Department of Marketing, Fairfield University, Fairfield, Connecticut, USA)
This paper proposes a knowledge-exchange framework for value co-creation in
franchise network. This conceptual study integrates literature on franchising,
knowledge based view of the firm, absorptive capacity, and service dominant logic to
propose a theoretical framework for value co-creation in franchising using knowledge
as an operant resource. The proposed framework suggests that in a franchise network
value is co-created by three key actors – franchisor, franchisees, and the customers;
the operant resource these key actors bring to the value creation process is knowledge;
and the absorptive capacity of principal actors and the appropriation hazard affect the
flow and sharing of knowledge.

15. BY: Anthony Richard Grace (Asia-Pacific Centre for Franchising Excellence,
Griffith University, Brisbane, Australia) Lorelle Frazer (Asia-Pacific Centre for
Franchising Excellence, Griffith University, Brisbane, Australia) Scott K. Weaven
 (Department of Marketing, Griffith University, Gold Coast, Australia) Rajiv P
Dant (Division of Marketing and Supply Chain Management, Price College of
Business, University of Oklahoma, Oklahoma, USA)
The purpose of this research is to identify the critical determinants of a franchisee’s
trust in their franchisor. A qualitative approach was used, and 30 interviews were
conducted with franchising participants. The first phase of the research consisted of
exploratory interviews with franchising experts (franchise lawyers, accountants,
consultants, mediators and bankers), and the second phase consisted of semi-
structured interviews with franchisees and franchisors across two franchise systems.
The research revealed five critical determinants of a franchisee’s trust in their
franchisor: franchisee’s engagement in the system, franchisee’s confidence in the
system, franchisee’s perception of a strong team culture, franchisee’s perception of
franchisor competence and franchisee’s perception of franchisor character.

16. BY: Elise Catherine Davis (Department of Epidemiology and Biostatistics, Texas
A&M Health Science Center School of Rural Public Health, College Station,
Texas, USA) Ashley Evans (Department of Health Administration, Texas A&M
Health Science Center School of Rural Public Health, College Station, Texas,
USA)
The purpose of this paper is to present proposed solutions and interventions to some
of the major barriers to providing adequate access to healthcare in Kenya. Specific
business models are proposed to improve access to quality healthcare in low- and
middle-income countries. Finally, strategies are developed for the retail clinic concept
(RCC).Google Scholar, PubMed and EBSCOhost were among the databases used to
collect articles relevant to the purpose in Kenya. Various governmental and news
articles were collected from Google searches. Relevant business models from other
sectors were considered for potential application to healthcare and the retail clinic
concept. After a review of current methodologies and approaches to business and
franchising models in various settings, the most relevant models are proposed as
solutions to improving quality healthcare in Kenya through the RCC. For example,
authors reviewed physician recruitment strategies, insurance plans and community
engagement. The paper is informed by existing literature and reports as well as key
informants.

17. BY: Scott Weaven (Department of Marketing, Service Industry Research Centre,
Griffith University, Queensland, Australia) Lorelle Frazer (Learning and Teaching,
Service Industry Research Centre, Griffith University, Queensland, Australia)
This paper aims to extend current understanding of organisational choice theory
through examining to what extent firm‐level factors influence the growth of
franchisee‐owned mini‐chains within Australian franchise systems. In particular, this
study examines how the age of the system, corporatisation of management processes,
plurality of distribution, levels of intra‐firm conflict and franchise system complexity
 influence multiple unit franchising adoption.A qualitative methodology was adopted
to gain a clearer picture of the salient issues influencing multiple unit franchising
adoption from the franchisor's perspective.The research reveals that mature franchise
systems in Australia use sequential methods of multiple unit franchising expansion in
order to minimise adverse selection costs and leverage learning economies derived
from previous experiences in managing intra‐firm channel relationships.

18. BY: Rozenn Perrigot (Graduate School of Management (IGR-IAE Rennes),

University of Rennes 1, Rennes, France) Guy Basset (Graduate School of
Management (IGR-IAE Rennes), University of Rennes 1, Rennes, France) Brinja
Meiseberg (Institute of Strategic Management, Westfälische Wilhelms-Universität
Münster, Münster, Germany)
The purpose of this paper is to offer a novel perspective on resale pricing in
franchising, i.e. from a franchisee perspective, by combining legal and managerial
considerations in the European context. The objective is to assess franchisee
perceptions regarding resale pricing in their chains.The authors adopt a qualitative
approach and use 46 in-depth interviews with franchisees covering retail and service
industries in the French market. Many of the interviewed franchisees believe that
joining a franchise chain involves respecting the recommended resale prices. For
some of the franchisees, in link with the chain uniformity, imposing uniform resale
prices throughout the chain represents a strength, because customers who visit
different stores within the franchise chain expect to find consistent pricing. Moreover,
many franchisees consider that their franchisors have some know-how that they use to
set correct resale prices, taking into account the profit margin.

19. BY: Jun Kang (Department of Marketing, Business School of Hunan University,
Changsha, Hunan, China) Anthony K. Asare (Department of Marketing,
Quinnipiac University, Hamden, Connecticut, USA) Thomas Brashear-Alejandro
(University of Massachusetts Amherst, Amherst, Massachusetts, USA) Ping Li
(Department of Marketing, Business School of Hunan University, Changsha,
Hunan, China)
This study aims to help resolve some of the inconsistencies of the relationships
between franchisor growth and its drivers in prior literature. First, this study
provides a meta-analysis with bivariate correlation analysis and moderation
analysis. It then offers an additional analysis of secondary data to shed further light
on the relationship between franchisor growth and its drivers.This study confirms
the diverse nature of the relationship between the various measures of growth and
drivers. It finds that proportion of outlets franchised and brand reputation have the
strongest relationships with geographic dispersion; age and proportion of outlets
franchised have the strongest relationships with outlet growth rate; and size has the
strongest relationship with the number of new outlets. In addition, these multiple
 relationships are moderated by all three research characteristics that this study
investigates, including data source, time frame and industry context.

20. BY: Seng‐Su Tsang (Department of Business Administration, National Taiwan

University of Science and Technology, Taipei, Taiwan, Republic of China) Carol A.
Finnegan (Department of Marketing, Strategy and International Business, College
of Business and Administration, University of Colorado at Colorado Springs,
Colorado Springs, Colorado, USA)
This study provides a robust test of a central question in franchising: which factors
influence the timing of adopting the first franchised outlet? Using a novel
methodology, the purpose of this study is to examine the factors that accelerated or
delayed the opening of the first franchisee outlet for the largest franchise chains in
the USA.The sample addresses a methodological shortcoming in traditional
franchising literature. Using duration analysis, the paper captures the timing of the
first franchise outlet for a retail concept. This allows us to capture the antecedents
that explain the differences in timing between franchise systems.By setting initial
investment costs lower, the average time to attract the first franchisee is shorter.
However, as franchisee net worth requirements rise, the time to attract the first
franchisee is longer. Finally, franchisors tend to defer expansion via franchising in
favor of managing their own outlets in resource rich industries.

21. BY: Olufunmilola (Lola) Dada (Institute for Entrepreneurship and Enterprise
Development, Lancaster University Management School, Lancaster, UK) Anna
Watson (London College of Fashion, University of the Arts, London, UK) David
Kirby (Faculty of Business Administration, Economics and Political Science, the
British University in Egypt, El Sherouk City, Egypt)
In spite of the important contributions of franchising to many economies, it remains
unclear whether it truly provides a scope for entrepreneurial tendencies to flourish
amongst franchisees. The purpose of this paper is to examine the debate
surrounding the franchisee as an entrepreneur from the perspectives of the main
contributors within the UK franchising sector, franchisors and franchisees, by
analysing their entrepreneurial tendencies and the franchisee selection process. The
paper is based on an empirical study using a focus group and a survey approach.The
findings from this study demonstrate that franchisees have similar levels of
entrepreneurial tendencies to franchisors. The results further indicate that
franchisors appear to value entrepreneurial personalities within their franchised
outlets, as demonstrated by their franchisee selection process.

22. BY: John McDonnell (School of Advertising, Marketing and Public Relations,
Queensland University of Technology, Brisbane, Australia) Amanda Beatson
(School of Advertising, Marketing and Public Relations, Queensland University of
Technology, Brisbane, Australia) Chih‐Hsuan Huang (School of Advertising,
 Marketing and Public Relations, Queensland University of Technology, Brisbane,
Australia)

Franchised convenience stores successfully operate throughout Taiwan, but the

convenience store market is approaching saturation point. This study attempts to
empirically examine some important elements (e.g. relationship quality, loyalty, and
cooperation) that might promote a successful long‐term franchising relationship
between franchisors and franchisees of convenience stores in Taiwan.A total of 500
surveys were mailed to a random sample of convenience stores' franchisees among
the four main franchisors in Taiwan. This research first used correlation analysis to
explore the associations between the constructs and then used a regression analysis
to further explore patterns of associations. The results show that relationship quality
is positively correlated with the cooperation between franchisors and franchisees, as
well as with franchisee loyalty. Additionally, the cooperative behavior between
franchisees and franchisors is significantly correlated with franchisees' loyalty.

23. BY: Mohd Hizam-Hanafiah (School of Management, Faculty of Economics and

Management, The National University of Malaysia, Bangi, Malaysia) Jun Li
(Essex Business School, University of Essex, Southend on Sea, UK)
This study aims to investigate the extent to which franchisees are satisfied with the
attainment of their personal goals in business. Although franchising continues to be
exploited in the business sector, research and studies of franchising were scarcely
mentioned in the organizational literature. Obviously, franchising as a body of
knowledge has been studied mostly from the franchisor’s perspective than on
franchisees. Within franchisee literature, studies on people’s motivation to become
a franchisee have received some attention and provided little understanding, but no
study has ever measured to what extent franchisees are satisfied with their personal
goals in the business. To investigate the hypotheses, a positivist approach is chosen
as the philosophical foundation of this study, and all methodological aspects related
with this approach are used in this study. A total of 204 franchisee entrepreneurs in
Malaysia were surveyed and answered self-administered questionnaires. In general,
statistical analysis suggests franchisees were satisfied with their goals attainments.
However, further analysis shows that franchisees were mostly satisfied with
intrinsic rewards goals, followed by perceived autonomy goals and family concern
goals. Surprisingly, franchisees have less satisfaction with economic gain goals
comparatively with other goals. Moreover, based on the conceptual analysis and
empirical evidence, hierarchy of economic goals and hierarchy of family goals are
discovered. Besides, this study does suggest that franchisees’ sustainability in the
business may be affected by attainment of their personal goals.

24. BY:Laura Lucia-Palacios (Marketing Department, University of Zaragoza,

Zaragoza, Spain) Victoria Bordonaba-Juste (Marketing Department, University of
Zaragoza, Zaragoza, Spain) Melih Madanoglu (Department of Marketing, Florida
Atlantic University, Boca Raton, Florida, USA)
 The purpose of this paper is to demonstrate how signaling support services and
contractual arrangements that create value for incumbent franchisees can help to
create value for the whole network by attracting prospective franchisees. Using data
from Bond's Franchising Report the study analyses franchisors operating between
1994 and 2008 via a Generalized Method of Moments (GMM) model for an
unbalanced panel of 2,474 franchisors. Training, financial assistance, sub-
franchising and restrictions against passive ownership, and the use of area
development agreements are found to be valuable for prospective franchisees.
Experience and the number of company-owned and franchised units also attract
prospective franchisees.

25. BY: Verónica Baena (Department of Business Administration, Universidad

Europea de Madrid, Madrid, Spain)
The purpose of this paper is to introduce a model that explores various possible
determining factors in the rate of franchising among emerging nations. Emerging
markets are some of the fastest growing economies in the world; moreover, the
countries they represent are undergoing substantial economic transformations. This
study uses a quantitative approach applied to a sample of 63 Spanish franchisors
with 2,836 franchisee outlets operating across the emerging countries. Results
conclude that geographical distance, uncertainty avoidance, individualism, political
stability, corruption, gross domestic product, efficiency of contract enforcement,
and nascent entrepreneurship are able to constrain the spread of franchising across
emerging nations.
26. BY: Abbey Mutumba (Department of Leisure and Hospitality, Makerere
University, Kampala, Uganda) Mohammad Ngoma (Department of Graduate
Studies and Research, Makerere University, Kampala, Uganda) John C. Munene
(FGSR, Makerere University, Kampala, Uganda) Joseph Mpeera Ntayi
(Department of Management Sciences, Makerere University, Kampala, Uganda)

The purpose of this paper is to establish the mediation effects of public–private–

partnership (PPP) on the association between complementary entrepreneurial
networking and the entrepreneurial ecosystem quality for sustainable franchising.A
structured questionnaire was used to collect this study’s qualitative data from a
study population of sub-franchisor organizations in Uganda. Statistical techniques
were used to analyze the data.Part of the authorized distributors’ mutually
beneficial networking is directly connected to multi-actor networks that
continuously simplify their local access to affordable franchise financing, mentors
and supportive leaders. Also, the same association is mediated through PPP
supported franchise-business information and widely appealing awards to be won.

27. BY: Melih Madanoglu (Department of Marketing, Florida Atlantic University,

Boca Raton, Florida, USA) Ersem Karadag (Department of Management, Robert
Morris University, Moon Township, Pennsylvania, USA)
 Borrowing from arguments of agency theory, the present study aims to investigate
the moderating effect of the deviation from optimal franchising on the relationship
between corporate governance provisions and firm financial performance.The
sample consists of 35 publicly listed US restaurant firms for the 1990-2008 period.
The study uses a hierarchical regression with cross-sectional time-series fixed
effects.The results show that the deviation from optimal franchising worsens the
negative relationship between corporate governance provisions and firm
performance.

28. BY: G.T.S. Ho (Department of Industrial and Systems Engineering, The Hong
Kong Polytechnic University, Hung Hom, Hong Kong) Cathy H. Y. Lam
(Department of Industrial and Systems Engineering, The Hong Kong Polytechnic
University, Hung Hom, Hong Kong) W.H. Ip (Department of Industrial and
Systems Engineering, The Hong Kong Polytechnic University, Hung Hom, Hong
Kong)
The purpose of this paper is to propose a franchising decision support system
(FDSS) for future development planning by center positioning strategy formulation
under a franchising business model. The system makes use of data collected from
the franchising business and external environment analysis for decision making in
center positioning problems. The fuzzy logic approach is integrated into the system
for analyzing the geographical market dynamics including profitability and
competitiveness in the district concerned. To demonstrate the application of the
proposed FDSS, a case study is conducted in a Hong Kong-based franchising
private education center, i.e. Dr I-Kids Education Center. The tailor made FDSS
helps to facilitate the business operations of the franchising education center and
develops a district positioning model for the centers located in the 18 districts of
Hong Kong. The findings provide a solid foundation for marketing strategy and
expansion direction formulation.

29. BY: Rozenn Perrigot (Graduate School of Management (IGR‐IAE), University of

Rennes 1 and ESC Rennes, Rennes, France) Guy Basset (Graduate School of
Management (IGR‐IAE), University of Rennes 1, Rennes, France) Gérard Cliquet
(Graduate School of Management (IGR‐IAE), University of Rennes 1, Rennes,
France)
The purpose of this paper is to highlight the various means of communication
available to franchisors in attracting prospective franchisees more effectively than
their competitors. In addition, it explores the potential use of Web 2.0 resources by
franchisors.The simultaneous use of various means of communication by
franchisors is examined through a case study. The authors have chosen one of the
largest franchised chains in the world, which is in the process of expanding its chain
of restaurants in many countries, with France being heavily targeted: Subway.This
case study reveals the complementarities of push communication, pull
communication, and communication relayed by influencers, along with the
development of new means of communication through the use of Web 2.0 tools
(Facebook, LinkedIn, YouTube, etc.).
 30. BY: Melih Madanoglu (Florida Atlantic University, Boca Raton, Florida, USA)
Ilan Alon (School of Business and Law, University of Agder, Kristiansand,
Norway) Amir Shoham (The Fox School of Business, Temple University,
Philadelphia, Pennsylvania, USA)
Using munificence, real options and ambidexterity theories, the purpose of this
paper is to demonstrate how the differential between home and host market
environmental conditions affects US international franchising expansion.The
authors used firm-level panel data for 151 US-based franchising firms, from
Bond’s Guide for Franchise Opportunities , for the years 1994-2008 plus
macroeconomic data on the environment, to explain the probability of
franchising.The paper finds that the differential in economic growth and economic
uncertainty impacts franchisors’ desire to expand abroad on a continual basis.

CONCLUSION

In this paper, I reviewed the recent management literature on franchising published in high
impact journals during the period 1996 – 2017. In addition, we focus on the management
control aspects of franchising chains. The final selection of eighty-six papers was classified
along three broad themes, namely the initiation and subsequent propensity to franchise,
franchise performance and control of franchising relationships. Based on the analysis of the
selected literature, we advise researchers to not exclusively take into consideration the
franchisor’s perspective, but to additionally incorporate other parties’ perspectives when
examining franchising phenomena. Concerning this issue, the franchisee’s perspective merits
particular notice. In spite of the fact that several control problems and control mechanisms in
franchising chains have already been examined in isolation, we conclude that the study of the
actual management of franchising relations including management control systems has not
yet received the academic attention it actually deserves.

REFERENCE

 Support mechanisms in international retail franchise network.:- Anne Marie Doherty 

InternationalJournal of Retail & Distribution Management.ISSN: 0959-0552
Publication date: 11 September 2007
 Franchising and initial public offering: a signaling perspective:- Ilan Alon, B. Elango 
International Journal of Retail & Distribution Management .ISSN: 0959-0552
Publication date: 10 December 2018 
 Franchising and small medium‐sized enterprises (SMEs) in industrializing economies:
A Saudi Arabian perspectiveMuhammad Asad Sadi, Joan C. Henderson  Journal of
Management DevelopmentISSN: 0262-1711Publication date: 12 April 2011 

 Internationalisation through franchising: the Parfois case study

Rosa Forte, Joao Carvalho  International Journal of Retail & Distribution Management
ISSN: 0959-0552Publication date: 19 April 2013

 The internationalization of retailing: Factors influencing the choice of franchising as a

market entry strategy
Anne Marie Doherty International Journal of Service Industry Management
ISSN: 0956-4233 Publication date: 1 May 2007

 Measuring and managing franchisee satisfaction: a study of academic franchising

Firdaus Abdullah, Mohd Rashidee Alwi, Nagarajah Lee, Voon Boo Ho Journal of
Modelling in Management ISSN: 1746-5664 Publication date: 4 July 2008

 Power and control in international retail franchising

Anne Marie Doherty, Nicholas Alexander European Journal of Marketing
ISSN: 0309-0566 Publication date: 1 November 2006

 International Franchise Expansion: Does Market Propinquity Matter?

Richard C. Hoffman, Joel F. Kincaid, John F. Preble Multinational Business Review
ISSN: 1525-383X Publication date: 1 April 2008

 International retail franchising: a conceptual framework

Barry Quinn, Nicholas Alexander :-International Journal of Retail & Distribution
Management ISSN: 0959-0552 Publication date: 1 May 2002

 New perspectives on the causes of franchising conflict in Australia

Scott Weaven, Lorelle Frazer, Jeff Giddings ,Asia Pacific Journal of Marketing and
Logistics ISSN: 1355-5855 Publication date: 30 March 2010 

 Franchisor's ongoing support and franchisee's satisfaction: a case of ice cream

franchising in Korea
Eugene Y. Roh, Ji‐Hwan Yoon  :-International Journal of Contemporary Hospitality
Management ISSN: 0959-6119 Publication date: 6 February 2009
 Toward an international code of franchising
Juan Gámez‐González, F. Javier Rondan‐Cataluña, Enrique C. Diez‐de
Castro, Antonio Navarro‐Garcia  :-Management Decision ISSN: 0025-1747
Publication date: 16 November 2010

 The role of prior knowledge in international franchise partner recruitment

Levent Altinay, Catherine L. Wang  :-International Journal of Service Industry
Management ISSN: 0956-4233 Publication date: 1 October 2006 

 International Franchising in the Context of Competitive Strategy and the Theory of

the Firm
Sandra M. Huszagh, Fredrick W. Huszagh, Faye S. McIntyre International Marketing
Review ISSN: 0265-1335 Publication date: 1 May 1992

 Value co-creation through knowledge exchange in franchising

Audhesh K. Paswan , Derrick D'Souza , Rajasree K. Rajamma Journal of Services
Marketing ISSN: 0887-6045 Publication date: 6 May 2014

 Building franchisee trust in their franchisor: insights from the franchise sector
Anthony Richard Grace , Lorelle Frazer , Scott K. Weaven , Rajiv P Dant  Qualitative
Market Research ISSN: 1352-2752 Publication date: 11 January 2016

 Market Conditions Favoring Master International Franchising

Ilan Alon :-Multinational Business Review ISSN: 1525-383X Publication date: 17
June 2006

 International Franchising in Emerging Markets: Central and Eastern Europe and Latin
America
Brent McKenzie :-International Journal of Service Industry Management ISSN: 0956-
4233 Publication date: 1 August 2002

 Proposed business and franchising models for primary care in Kenya

Elise Catherine Davis, Ashley Evans, Caroline Uptmore, Sarah Lang, Jessica
K. McElroy, David Ellenburg, Tony Nguyen, Bita A. Kash :-European Journal of
Training and Development ISSN: 2046-9012 Publication date: 19 February 2018
 Franchising Ethnic Entrepreneurship: Immigrant Business Owners and an Alternative
Economic Model
Pawan Dhingra, Jennifer Parker Immigration and Work ISBN: 978-1-78441-632-
4, eISBN: 978-1-78441-631-7 ISSN: 0277-2833 Publication date: 31 March 2015

 Mature franchise systems use multiple unit franchising to leverage learning

economies and sustain systemwide growth
Scott Weaven, Lorelle Frazer Asia Pacific Journal of Marketing and Logistics
ISSN: 1355-5855 Publication date: 3 April 2007 

 Resale prices in franchising: insights from franchisee perspectives

Rozenn Perrigot, Guy Basset, Brinja Meiseberg  Journal of Product & Brand
Management ISSN: 1061-0421 Publication date: 21 November 2016

 Drivers of franchisor growth: a meta-analysis

Jun Kang, Anthony K. Asare, Thomas Brashear-Alejandro, Ping Li :-Journal of
Business & Industrial Marketing ISSN: 0885-8624 Publication date: 5 March 2018 

 How do franchisor policies and industry attractiveness impact franchise timing?

Evidence from entrepreneur's top 500 franchisors
Seng‐Su Tsang, Carol A. Finnegan :-International Journal of Retail & Distribution
Management ISSN: 0959-0552 Publication date: 8 February 2013

 Investigating relationships between relationship quality, customer loyalty and

cooperation: An empirical study of convenience stores' franchise chain systems
John McDonnell, Amanda Beatson, Chih‐Hsuan Huang  :-Asia Pacific Journal of
Marketing and Logistics ISSN: 1355-5855 Publication date: 14 June 2011 
SUCCESS OF FRANCHISING –
LITRATURE REVIEW
INTRODUCTION

A franchise is an arrangement where the owner of the brand and business model gives you
the right to use said brand and business model (with all attending trademarks, products,
systems, etc.) in exchange for money. In the franchise system, the owner is the franchisor and
you are the franchisee.

Often, this is how a franchise comes to be: an entrepreneur starts an independent small
business, and over time refines it into a successful and stable business model. Let’s call this
entrepreneur Alex. Alex realizes the efficacy of what she has built, and wants to expand it.
She could do this by opening more branches herself, or she could sell her business model
(and all attending perks) to another entrepreneur.

Sam wants to be his own boss, but doesn’t necessarily want to deal with the trial and error of
starting his own business from scratch. He wants to use somebody’s business model that has
already been proven, with a brand that has widespread recognition. Sam can purchase Alex’s
brand and business model; thus the franchise is born. Sam then opens a franchise location and
runs his business according to the model that Alex developed. He gets to use a market-tested
brand, marketing materials, business model, techniques and products. In this situation, a
franchise agreement is a win-win for both Alex and Sam. Alex gets to build her brand and
wealth by expanding through a franchisee, and Sam gets to become his own boss with a
proven business model 

OBJECTIVE

 To know about the dealing in Franchising

 To get knowledge about International Franchising and impact on the Economy