492
Views
1
CrossRef citations to date
0
Altmetric
Research Articles

Curbing franchisee failure: A systematic review of the empirical evidence

References

  • Alon, I., Boulanger, M., Misati, E., & Madanoglu, M. (2015). Are the parents to blame? Predicting franchisee failure. Competitiveness Review, 25(2), 205–217. https://doi.org/10.1108/CR-10-2014-0034
  • Antia, K. D., Mani, S., & Wathne, K. H. (2017). Franchisor-franchisee bankruptcy and the efficacy of franchisee governance. Journal of Marketing Research, 54(6), 952–967. https://doi.org/10.1509/jmr.14.0182
  • Antia, K. D., Zheng, X., & Frazier, G. L. (2013). Conflict management and outcomes in franchise relationships: The role of regulation. Journal of Marketing Research, 50(5), 577–589. https://doi.org/10.1509/jmr.11.0144
  • Argyres, N., & Bercovitz, J. (2015). Franchisee associations as sources of bargaining power? Some evidence. Journal of Economics & Management Strategy, 24(4), 811–832. https://doi.org/10.1111/jems.12111
  • Barthélemy, J. (2011). Agency and institutional influences on franchising decisions. Journal of Business Venturing, 26(1), 93–103. https://doi.org/10.1016/j.jbusvent.2009.05.002
  • Bates, T. (1995a). Analysis of survival rates among franchise and independent small business startups. Journal of Small Business Management, 33(2), 26–36.
  • Bates, T. (1995b). A comparison of franchise and independent small business survival rates. Small Business Economics, 7(5), 377–388. https://doi.org/10.1007/BF01302738
  • Bates, T. (1998). Survival patterns among newcomers to franchising. Journal of Business Venturing, 13(2), 113–130. https://doi.org/10.1016/S0883-9026(97)00066-9
  • Beales, J. H., & Muris, T. J. (1995). The foundations of franchise regulation: Issues and evidence. Journal of Corporate Finance, 2(1–2), 157–197. https://doi.org/10.1016/0929-1199(95)00008-V
  • BFA (British Franchise Association)/NatWest Franchise Survey. (2018).
  • Brand, M. J., Croonen, E. P., & Welsh, D. H. (2016). Successfully managing chain-wide transformational change. Organizational Dynamics, 45(2), 94–103. https://doi.org/10.1016/j.orgdyn.2016.02.003
  • Buchan, J., Frazer, L., Zhen Qu, C., & Nicholls, R. (2015). Franchisor insolvency in Australia: Profiles, factors, and impacts. Journal of Marketing Channels, 22(4), 311–332. https://doi.org/10.1080/1046669X.2015.1113487
  • Calderon-Monge, E., Pastor-Sanz, I., & Huerta-Zavala, P. (2017). Economic sustainability in franchising: A model to predict franchisor success or failure. Sustainability, 9(8), 1419. https://doi.org/10.3390/su9081419
  • Carney, M., & Gedajlovic, E. (1991). Vertical integration in franchise systems: Agency theory and resource explanations. Strategic Management Journal, 12(8), 607–629. https://doi.org/10.1002/smj.4250120804
  • CFA (Canadian Franchise Association) Annual Accomplishments Report. (2019). Retrieved March 14, 2020, from https://issuu.com/franchisecanada/docs/cfa_ar2019?e=32857347/69171575
  • Chiou, J. S., Hsieh, C. H., & Yang, C. H. (2004). The effect of franchisors’ communication, service assistance, and competitive advantage on franchisees’ intentions to remain in the franchise system. Journal of Small Business Management, 42(1), 19–36. https://doi.org/10.1111/j.1540-627X.2004.00095.x
  • Clarkin, J. E. (2008). Channel changes: An examination of ownership change in franchise firms. Journal of Marketing Channels, 15(1), 23–41. https://doi.org/10.1080/10466690802081368
  • Clarkin, J. E., & Rosa, P. J. (2005). Entrepreneurial teams within franchise firms. International Small Business Journal, 23(3), 303–334. https://doi.org/10.1177/0266242605052075
  • Combs, J. G., Michael, S. C., & Castrogiovanni, G. J. (2009). Institutional influences on the choice of organizational form: The case of franchising. Journal of Management, 35(5), 1268–1290. https://doi.org/10.1177/0149206309336883
  • Cox, J., & Mason, C. (2009). Franchise network restructuring: Pressures, constraints and mechanisms. Entrepreneurship and Regional Development, 21(5–6), 503–527. https://doi.org/10.1080/08985620802365178
  • Croonen, E. (2010). Trust and fairness during strategic change processes in franchise systems. Journal of Business Ethics, 95(2), 191–209. https://doi.org/10.1007/s10551-009-0354-z
  • Croonen, E. P., & Brand, M. J. (2015). Antecedents of franchisee responses to franchisor-initiated strategic change. International Small Business Journal, 33(3), 254–276. https://doi.org/10.1177/0266242613499805
  • Dada, L. (2018). A model of entrepreneurial autonomy in franchised outlets: A systematic review of the empirical evidence. International Journal of Management Reviews, 20(2), 206–226. https://doi.org/10.1111/ijmr.12123
  • Dada, L., Jack, S., & George, M. (2016). University–business engagement franchising and geographic distance: A case study of a business leadership programme. Regional Studies, 50(7), 1217–1231. https://doi.org/10.1080/00343404.2014.995614
  • Dant, R. P. (2008). A futuristic research agenda for the field of franchising. Journal of Small Business Management, 46(1), 91–98. https://doi.org/10.1111/j.1540-627X.2007.00233.x
  • Dant, R. P., Grünhagen, M., & Windsperger, J. (2011). Franchising research frontiers for the twenty-first century. Journal of Retailing, 87(3), 253–268.
  • Davey, M. M., Cummings, G., Newburn-Cook, C. V., & Lo, E. A. (2009). Predictors of nurse absenteeism in hospitals: A systematic review. Journal of Nursing Management, 17(3), 312–330. https://doi.org/10.1111/j.1365-2834.2008.00958.x
  • Davies, M. A., Lassar, W., Manolis, C., Prince, M., & Winsor, R. D. (2011). A model of trust and compliance in franchise relationships. Journal of Business Venturing, 26(3), 321–340. https://doi.org/10.1016/j.jbusvent.2009.09.005
  • Emerson, R. W. (2016). Franchise terminations: Good cause decoded. Wake Forest Law Review, 51, 103–164.
  • Entrepreneur.com. Retrieved January 9, 2020, from https://www.entrepreneur.com/franchise500/2019
  • Export.gov. Retrieved August 13, 2019, from https://www.export.gov/search#/search/articles?q=franchise&_k=qdepw3
  • Falbe, C. M., & Welsh, D. H. (1998). NAFTA and franchising: A comparison of franchisor perceptions of characteristics associated with franchisee success and failure in Canada, Mexico, and the United States. Journal of Business Venturing, 13(2), 151–171. https://doi.org/10.1016/S0883-9026(97)00068-2
  • Fitz-Koch, S., Nordqvist, M., Carter, S., & Hunter, E. (2018). Entrepreneurship in the agricultural sector: A literature review and future research opportunities. Entrepreneurship Theory and Practice, 42(1), 129–166. https://doi.org/10.1177/1042258717732958
  • Forbes.com. Retrieved January 9, 2020, from https://www.forbes.com/sites/karstenstrauss/2019/06/19/best-worst-franchises-buy-own/#6e0e85977d79
  • Franchise.org. Franchising industry: A reference for U.S. exporters. Retrieved January 9, 2020, from https://www.franchise.org/sites/default/files/2019-05/USCS_Franchising_Resource_Guide_2018.pdf
  • Frazer, L. (2001). Causes of disruption to franchise operations. Journal of Business Research, 54(3), 227–234. https://doi.org/10.1016/S0148-2963(00)00118-1
  • Frazer, L., & Grace, A. (2017). Franchisor-franchisee relationships. In F. Hoy, R. Perrigot, & A. Terry (Eds.), Handbook of research on franchising (pp. 211–233). Edward Elgar Publishing.
  • Frazer, L., Merrilees, B., & Wright, O. (2007). Power and control in the franchise network: An investigation of ex-franchisees and brand piracy. Journal of Marketing Management, 23(9–10), 1037–1054. https://doi.org/10.1362/026725707X250458
  • Frazer, L., & Terry, A. (2002). Factors affecting franchise agreement terminations: Lessons for the franchising sector. Journal of Small Business Strategy, 13(1), 105–116.
  • Frazer, L., Weaven, S., Giddings, J., & Grace, D. (2012). What went wrong? Franchisors and franchisees disclose the causes of conflict in franchising. Qualitative Market Research: An International Journal, 15(1), 87–103. https://doi.org/10.1108/13522751211192017
  • Frazer, L., & Winzar, H. (2005). Exits and expectations: Why disappointed franchisees leave. Journal of Business Research, 58(11), 1534–1542. https://doi.org/10.1016/j.jbusres.2004.08.001
  • Gant, J. L., & Buchan, J. (2019). Moral hazard, path dependency and failing franchisors: Mitigating franchisee risk through participation. Federal Law Review, 0067205X19831841.
  • Germain, P. B., & Cummings, G. G. (2010). The influence of nursing leadership on nurse performance: A systematic literature review. Journal of Nursing Management, 18(4), 425–439. https://doi.org/10.1111/j.1365-2834.2010.01100.x
  • Grünhagen, M., Zheng, X. V., & Wang, J. J. (2017). When the music stops playing: Post-litigation relationship dissolution in franchising. Journal of Retailing, 93(2), 138–153. https://doi.org/10.1016/j.jretai.2016.10.002
  • Hakala, H. (2011). Strategic orientations in management literature: Three approaches to understanding the interaction between market, technology, entrepreneurial and learning orientations. International Journal of Management Reviews, 13(2), 199–217. https://doi.org/10.1111/j.1468-2370.2010.00292.x
  • Hendrikse, G., Hippmann, P., & Windsperger, J. (2015). Trust, transaction costs and contractual incompleteness in franchising. Small Business Economics, 44(4), 867–888. https://doi.org/10.1007/s11187-014-9626-9
  • Holmberg, S. R., & Morgan, K. B. (2003). Franchise turnover and failure: New research and perspectives. Journal of Business Venturing, 18(3), 403–418. https://doi.org/10.1016/S0883-9026(02)00085-X
  • Holmberg, S. R., & Morgan, K. B. (2004). Retail marketing channel franchise failure: A strategic management perspective and longitudinal analysis. Journal of Marketing Channels, 11(2–3), 55–76. https://doi.org/10.1300/J049v11n02_04
  • Holmberg, S. R., & Morgan, K. B. (2007). Entrepreneurial global franchise ventures: US and European franchisee failure strategic and empirical perspectives. International Entrepreneurship and Management Journal, 3(4), 379–401. https://doi.org/10.1007/s11365-007-0044-1
  • Hsieh, H. F., & Shannon, S. E. (2005). Three approaches to qualitative content analysis. Qualitative Health Research, 15(9), 1277–1288. https://doi.org/10.1177/1049732305276687
  • Jang, S. S., & Park, K. (2019). A sustainable franchisor-franchisee relationship model: Toward the franchise win-win theory. International Journal of Hospitality Management, 76, 13–24. https://doi.org/10.1016/j.ijhm.2018.06.004
  • Joffe, H., & Yardley, L. (2004). Content and thematic analysis. In D. F. Marks & L. Yardley (Eds.), Research methods for clinical and health psychology (pp. 56–68). Sage Publications.
  • JSTOR Support. Retrieved August 10, 2019, from https://support.jstor.org/hc/en-us/articles/115011338628-Searching-Are-JSTOR-articles-peer-reviewed-
  • Kacker, M., Dant, R. P., Emerson, J., & Coughlan, A. T. (2016). How firm strategies impact size of partner‐based retail networks: Evidence from franchising. Journal of Small Business Management, 54(2), 506–531. https://doi.org/10.1111/jsbm.12155
  • Keupp, M. M., Palmié, M., & Gassmann, O. (2012). The strategic management of innovation: A systematic review and paths for future research. International Journal of Management Reviews, 14(4), 367–390. https://doi.org/10.1111/j.1468-2370.2011.00321.x
  • Krippendorff, K. (2004). Content analysis: An introduction to its methodology. Sage Publications.
  • Lafontaine, F., Zapletal, M., & Zhang, X. (2019). Brighter prospects? Assessing the franchise advantage using census data. Journal of Economics & Management Strategy, 28(2), 175–197. https://doi.org/10.1111/jems.12289
  • Lanchimba, C., Windsperger, J., & Fadairo, M. (2018). Entrepreneurial orientation, risk and incentives: The case of franchising. Small Business Economics, 50(1), 163–180. https://doi.org/10.1007/s11187-017-9885-3
  • Lim, J., & Frazer, L. (2002). Introducing franchising regulation: An analysis of the Australian franchising code of conduct. Journal of Marketing Channels, 10(2), 39–56. https://doi.org/10.1300/J049v10n02_04
  • López‐Bayón, S., & López‐Fernández, B. (2016). Partner empowerment and relationship failure in franchising. Journal of Small Business Management, 54(4), 1059–1079. https://doi.org/10.1111/jsbm.12234
  • López-Fernández, B., & López-Bayón, S. (2018). Antecedents of early terminations in franchising: Franchisor versus franchisee cancelations. Small Business Economics, 50(4), 677–695. https://doi.org/10.1007/s11187-017-9889-z
  • Manolis, C., Dahlstrom, R., & Nygaard, A. (1995). A preliminary investigation of ownership conversions in franchised distribution systems. Journal of Applied Business Research, 11(2), 1–8. https://doi.org/10.19030/jabr.v11i2.5868
  • Meek, W. R., Davis‐Sramek, B., Baucus, M. S., & Germain, R. N. (2011). Commitment in franchising: The role of collaborative communication and a franchisee’s propensity to leave. Entrepreneurship Theory and Practice, 35(3), 559–581. https://doi.org/10.1111/j.1540-6520.2011.00445.x
  • Michael, S. C. (2000). Investments to create bargaining power: The case of franchising. Strategic Management Journal, (21), 497–514.
  • Michael, S. C. (2009). Entrepreneurial signaling to attract resources: The case of franchising. Managerial and Decision Economics, 30(6), 405–422. https://doi.org/10.1002/mde.1460
  • Michael, S. C., & Combs, J. G. (2008). Entrepreneurial failure: The case of franchisees. Journal of Small Business Management, 46(1), 73–90. https://doi.org/10.1111/j.1540-627X.2007.00232.x
  • Mignonac, K., Vandenberghe, C., Perrigot, R., El Akremi, A., & Herrbach, O. (2015). A multi‐study investigation of outcomes of franchisees’ affective commitment to their franchise organization. Entrepreneurship Theory and Practice, 39(3), 461–488. https://doi.org/10.1111/etap.12050
  • Nijmeijer, K. J., Fabbricotti, I. N., & Huijsman, R. (2014). Making franchising work: A framework based on a systematic review. International Journal of Management Reviews, 16(1), 62–83. https://doi.org/10.1111/ijmr.12009
  • Norton, S. W. (1988). Franchising, brand name capital, and the entrepreneurial capacity problem. Strategic Management Journal, 9(S1), 105–114. https://doi.org/10.1002/smj.4250090711
  • Parris, D. L., & Peachey, J. W. (2013). A systematic literature review of servant leadership theory in organizational contexts. Journal of Business Ethics, 113(3), 377–393. https://doi.org/10.1007/s10551-012-1322-6
  • Patel, P. C., & Pearce, J. A. (2020). Franchisees and loan default on third-party guarantee loans: Evidence from the United States. Entrepreneurship Theory and Practice, 44(5), 861–877.
  • Perdreau, F., Chaudey, M., Chanut, O., & Fadairo, M. (2018). Contract duration and contractual learning: Evidence from franchising networks. Managerial and Decision Economics, 39(2), 240–252. https://doi.org/10.1002/mde.2899
  • Perkmann, M., Tartari, V., McKelvey, M., Autio, E., Broström, A., D’Este, P., Fini, R., Geuna, A., Grimaldi, R., Hughes, A., & Krabel, S. (2013). Academic engagement and commercialization: A review of the literature on university–industry relations. Research Policy, 42(2), 423–442. https://doi.org/10.1016/j.respol.2012.09.007
  • Schell, B. H., & McGillis, S. (1995). How type A franchisees cope with failed businesses: An analysis of micro-and macro-system factors. Journal of Small Business & Entrepreneurship, 12(4), 27–48. https://doi.org/10.1080/08276331.1995.10600503
  • Sniegowski, D. (2014). U.S. Franchise unit turnover rate is 122 percent. Retrieved January 10, 2020, from https://www.bluemaumau.org/story/2014/10/15/us-franchise-unit-turnover-rate-122-percent
  • Spinelli, S., & Birley, S. (1996). Toward a theory of conflict in the franchise system. Journal of Business Venturing, 11(5), 329–342. https://doi.org/10.1016/0883-9026(96)00049-3
  • Statista. Retrieved August 13, 2019a, from https://www.statista.com/statistics/685293/number-of-franchisees-in-sweden/
  • Statista. Retrieved August 13, 2019b, from https://www.statista.com/statistics/665860/franchising-number-of-franchisees-in-germany/
  • Swart, J. C., & Carter, R. B. (1972). Negroes in franchising. Journal of Retailing, 48(3), 81–127.
  • Wang, C. L., & Chugh, H. (2014). Entrepreneurial learning: Past research and future challenges. International Journal of Management Reviews, 16(1), 24–61. https://doi.org/10.1111/ijmr.12007
  • Wang, J. J., Grünhagen, M., Ji, L. J., & Zheng, X. V. Conflict aftermath: Dispute resolution and financial performance in franchising. (2020). Journal of Retailing, 96(4), 548–562. In Press. https://doi.org/10.1016/j.jretai.2020.03.001
  • Watson, A., & Dada, L. (2017). Managing entrepreneurial tensions in franchise systems. In F. Hoy, R. Perrigot, & A. Terry (Eds.), Handbook of research on franchising (pp. 17–33). Edward Elgar Publishing.
  • Watson, A., & Johnson, R. (2010). Managing the franchisor–franchisee relationship: A relationship marketing perspective. Journal of Marketing Channels, 17(1), 51–68. https://doi.org/10.1080/10466690903436305
  • Weber, R. P. (1990). Basic content analysis. Sage Publications.
  • Whetten, D. A. (1989). What constitutes a theoretical contribution? Academy of Management Review, 14(4), 490–495. https://doi.org/10.5465/amr.1989.4308371
  • whichfranchise.co.za. Retrieved August 13, 2019, from https://whichfranchise.co.za/franchising-south-africa-franchise-facts-figures/
  • White, M. D., & Marsh, E. E. (2006). Content analysis: A flexible methodology. Library Trends, 55(1), 22–45. https://doi.org/10.1353/lib.2006.0053
  • Winsor, R. D., Manolis, C., Kaufmann, P. J., & Kashyap, V. (2012). Manifest conflict and conflict aftermath in franchise systems: A 10‐year examination. Journal of Small Business Management, 50(4), 621–651. https://doi.org/10.1111/j.1540-627X.2012.00369.x
  • Winter, S. G., Szulanski, G., Ringov, D., & Jensen, R. J. (2012). Reproducing knowledge: Inaccurate replication and failure in franchise organizations. Organization Science, 23(3), 672–685. https://doi.org/10.1287/orsc.1110.0663
  • Wright, O., & Grace, A. (2011). Trust and commitment within franchise systems: An Australian and New Zealand perspective. Asia Pacific Journal of Marketing and Logistics, 23(4), 486–500. https://doi.org/10.1108/13555851111165048
  • Zachary, M. A., McKenny, A. F., Short, J. C., Davis, K. M., & Wu, D. (2011). Franchise branding: An organizational identity perspective. Journal of the Academy of Marketing Science, 39(4), 629–645. https://doi.org/10.1007/s11747-011-0252-7
  • Zerbinati, S., & Souitaris, V. (2005). Entrepreneurship in the public sector: A framework of analysis in European local governments. Entrepreneurship and Regional Development, 17(1), 43–64. https://doi.org/10.1080/0898562042000310723
  • Zwisler, C. E. (2019). Global Franchise regulation update. Retrieved December 8, 2019, from https://www.franchise.org/sites/default/files/2019-05/percent5BPUBpercent5Dpercent20Globalpercent20Franchisepercent20Regulationpercent20Updatepercent204844-9080-8395percent20v.25.pdf

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.