Logo image
Why Franchisors Discontinue Franchising but Continue Operating
Journal article   Peer reviewed

Why Franchisors Discontinue Franchising but Continue Operating

Lorelle Frazer
International Small Business Journal, Vol.19(3), pp.29-38
2001
url
https://doi.org/10.1177/0266242601193002View
Published Version

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 anid monitoring franchisees and economic factors such as the downturn in the economy during the 1990s. © 2001, SAGE Publications. All rights reserved.

Details

Metrics

218 Record Views
Logo image