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  • Why Franchisors Discontinue Franchising but Continue Operating

    Author(s)
    Frazer, Lorelle
    Griffith University Author(s)
    Frazer, Lorelle
    Year published
    2001
    Metadata
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    Abstract
    This paper provides a preliminary analysis of the strategic managemnent decision of franchisors to discoritinue franchising arrangements in favour of an alternative method of ownership. A sample of 14 ex-franchisors and seven of their ex-franchisees was interviewed to gather data on reasons and outcomes of the decision to cease franchisinig arrangements. The data analysis indicates that in general the firms were attracted to franchising because of resource constraints. However, the decision to adopt an alternative ownership strategy appears to be based on problems associated with human capital such as difficulties in motivating ...
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    This paper provides a preliminary analysis of the strategic managemnent decision of franchisors to discoritinue franchising arrangements in favour of an alternative method of ownership. A sample of 14 ex-franchisors and seven of their ex-franchisees was interviewed to gather data on reasons and outcomes of the decision to cease franchisinig arrangements. The data analysis indicates that in general the firms were attracted to franchising because of resource constraints. However, the decision to adopt an alternative ownership strategy appears to be based on problems associated with human capital such as difficulties in motivating anid monitoring franchisees and economic factors such as the downturn in the economy during the 1990s.
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    Journal Title
    International Small Business Journal
    Volume
    19
    Publisher URI
    http://isb.sagepub.com/cgi/content/abstract/19/3/29
    Copyright Statement
    © 2001 Sage Publications. Reproduced in accordance with the copyright policy of the publisher. First published in International Small Business Journal. This journal is available online: http://isb.sagepub.com/content/vol19/issue3/
    Subject
    Business and Management
    Marketing
    Publication URI
    http://hdl.handle.net/10072/3957
    Collection
    • Journal articles

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