Contrasting the Four Franchising Imperatives Across Hybridized Governance Models: A Preliminary Investigation

Abstract

Although multiple-unit franchising is a popular and pervasive retailing strategy throughout the world, there is a paucity of prior research examining the factors influencing the achievement of the four franchising imperatives (i.e., unit growth, uniformity, local responsiveness, and system-wide adaptation) within the context of these hybridized arrangements. Exploratory interviews were conducted (16 franchisees), and results suggest master franchising realizes the strategic imperatives of unit growth, system uniformity, system-wide adaptation, and (partially) local responsiveness. Master franchising and area development arrangements enabled system uniformity, whereas incremental and area representative arrangements promoted system-wide adaptation. Implications for practitioners and future academic researchers are presented.

Keywords:

• multiunit franchising
• plural governance
• four imperatives