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Insights into Franchising: A Review of Empirical and Theoretical Perspectives

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  • Fulop Christina
  • FORWARD JIM

Abstract

Business format franchising has expanded rapidly, over the past 40 years as an alternative method of distribution and business development. This literature review analyses the major issues which have been the subject of in-depth research and/or significant debate. These include: the determinants of franchising in theory and practice; why franchisors normally operate both franchised and company-owned outlets, and the factors which influence the balance between them; the role and position of franchisees within the franchisor/franchisee relationship and, finally, the continuing debate surrounding the kind of regulatory framework in which it should operate. These findings are evaluated and aspects of franchising which warrant further investigation are outlined.

Suggested Citation

  • Fulop Christina & FORWARD JIM, 1997. "Insights into Franchising: A Review of Empirical and Theoretical Perspectives," The Service Industries Journal, Taylor & Francis Journals, vol. 17(4), pages 603-625, October.
    • Handle: RePEc:taf:servic:v:17:y:1997:i:4:p:603-625
    DOI: 10.1080/02642069700000037
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    References listed on IDEAS

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    1. Antony W. Dnes, 2011. "Franchise Contracts," Chapters, in: Gerrit De Geest (ed.), Contract Law and Economics, chapter 18, Edward Elgar Publishing.
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    1. Manuela Pardo-del-Val & Clara Martínez-Fuentes & José Ignacio López-Sánchez & Beatriz Minguela-Rata, 2014. "Franchising: the dilemma between standardisation and flexibility," The Service Industries Journal, Taylor & Francis Journals, vol. 34(9-10), pages 828-842, July.
    2. Hennessy, David A., 2003. "Property rights, productivity, and the nature of noncontractible actions in a franchise system," Journal of Economic Behavior & Organization, Elsevier, vol. 52(4), pages 443-468, December.
    3. Holmberg, Stevan R. & Morgan, Kathryn Boe, 2003. "Franchise turnover and failure: New research and perspectives," Journal of Business Venturing, Elsevier, vol. 18(3), pages 403-418, May.
    4. Chabowski, Brian R. & Hult, G. Tomas M. & Mena, Jeannette A., 2011. "The Retailing Literature as a Basis for Franchising Research: Using Intellectual Structure to Advance Theory," Journal of Retailing, Elsevier, vol. 87(3), pages 269-284.
    5. Davies, Mark A.P. & Lassar, Walfried & Manolis, Chris & Prince, Melvin & Winsor, Robert D., 2011. "A model of trust and compliance in franchise relationships," Journal of Business Venturing, Elsevier, vol. 26(3), pages 321-340, May.

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