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The Franchisee Perception of Achieving Success in Entrepreneurial Businesses

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  • Khan Muhammad Rahatullah

    (Department of Entrepreneurship, Effat University, Al Nuzla Jeddah, Saudi Arabia)

Abstract

Literary contributions extensively talk about the problems and constraints that surface the need and strategy to control and support franchisee and how to strengthen this relationship. However, the view of franchisee seems less explored on this subject. Based on empirical study responses of 269 franchisees across UK, we provide their viewpoint. We find that to develop and sustain a franchise and to curb opportunism and the excessive power and reward demands by the franchisor, a cooperative and collaborative strategy is best where conflicts are avoided. This paper highlights the standpoint of the franchisee regarding the actions that lead to conflicts and what do they perceive can curb differences in the relationship of the two entrepreneurs. This paper will significantly contribute to the franchise and business-to-customer entrepreneurship literature and attempt to enhance our understanding of the delicate relationship from the perspective of franchisee.

Suggested Citation

  • Khan Muhammad Rahatullah, 2013. "The Franchisee Perception of Achieving Success in Entrepreneurial Businesses," Entrepreneurship Research Journal, De Gruyter, vol. 3(4), pages 505-525, July.
    • Handle: RePEc:bpj:erjour:v:3:y:2013:i:4:p:505-525:n:2
    DOI: 10.1515/erj-2013-0035
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    References listed on IDEAS

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    1. Karin Fladmoe-Lindquist & Laurent L. Jacque, 1995. "Control Modes in International Service Operations: The Propensity to Franchise," Management Science, INFORMS, vol. 41(7), pages 1238-1249, July.
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    3. Scott Shane & Maw-Der Foo, 1999. "New Firm Survival: Institutional Explanations for New Franchisor Mortality," Management Science, INFORMS, vol. 45(2), pages 142-159, February.
    4. Shane, Scott A. & Hoy, Frank, 1996. "Franchising: A gateway to cooperative entrepreneurship," Journal of Business Venturing, Elsevier, vol. 11(5), pages 325-327, September.
    5. Lafontaine, Francine & Bhattacharyya, Sugato, 1995. "The role of risk in franchising," Journal of Corporate Finance, Elsevier, vol. 2(1-2), pages 39-74, October.
    6. Rubin, Paul H, 1978. "The Theory of the Firm and the Structure of the Franchise Contract," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 223-233, April.
    7. Lafontaine, Francine & Shaw, Kathryn L., 1998. "Franchising growth and franchisor entry and exit in the U.S. market: Myth and reality," Journal of Business Venturing, Elsevier, vol. 13(2), pages 95-112, March.
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