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  • Is the franchising model attractive to independent small business operators?

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    57555_1.pdf (96.42Kb)
    Author(s)
    Bennett, Stephen
    Frazer, Lorelle
    Weaven, Scott
    Griffith University Author(s)
    Frazer, Lorelle
    Weaven, Scott K.
    Bennett, Stephen J.
    Year published
    2009
    Metadata
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    Abstract
    A shortage of suitable franchisee applicants has been identified by franchisors as a major hindrance to franchise sector growth in Australia. However, there has been little investigation into this issue within organisational choice research. This represents an important gap in the literature. In order to explore the issue of franchisee shortage, it was necessary to determine why individuals chose to enter franchising as a franchisee or why they chose to become small independent business operators. Interviews with 10 franchisees and 10 independent small business operators were conducted in Brisbane, Australia. The ...
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    A shortage of suitable franchisee applicants has been identified by franchisors as a major hindrance to franchise sector growth in Australia. However, there has been little investigation into this issue within organisational choice research. This represents an important gap in the literature. In order to explore the issue of franchisee shortage, it was necessary to determine why individuals chose to enter franchising as a franchisee or why they chose to become small independent business operators. Interviews with 10 franchisees and 10 independent small business operators were conducted in Brisbane, Australia. The interviews investigated the characteristics of franchisees and independent small business operators, and looked for differences between the two groups. Whilst their risk profiles were similar, franchisees were less likely to conduct much research prior to making a business choice. Franchisees considered ongoing support, the provision of training and a proven system with established processes to be very important. Alternatively, independent small business operators preferred to exercise absolute control over their businesses, relying on knowledge and skills gained in prior employment and valuing their independence. Franchising appeared to offer the dual benefits of facilitating entry into business in an unfamiliar industry for inexperienced operators as well as providing a vehicle for growth and expansion for investors with previous corporate management experience. Opportunities for franchisors to attract independent business operators include addressing the negative image attached to franchising and demonstrating that the franchise system is not restrictive for entrepreneurs.
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    Conference Title
    2009 International Society of Franchising 23rd Annual Conference Proceedings
    Publisher URI
    https://www.business.nova.edu/
    Copyright Statement
    © 2009 ISOF. Use hypertext link to access the publisher's website. The attached file is posted here in accordance with the copyright policy of the publisher, for your personal use only. No further distribution permitted.
    Subject
    Small Business Management
    Publication URI
    http://hdl.handle.net/10072/29499
    Collection
    • Conference outputs

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