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Multibrand, multisystem and multirole franchising: A qualitative exploration and framework development in Brazil

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  • Marko Grünhagen
  • Manuel González-Díaz
  • Dildar Hussain
  • Haroldo Monteiro da Silva Filho

Abstract

We investigate franchisees’ rationales for ownership constellations beyond single brands or systems. Through exploratory interviews with Brazilian franchisees, reasoning and process of how franchisees develop their multibrand, multisystem and multirole portfolio is elucidated. Franchisees in Brazil with ownership stakes in more than one brand/system aim to keep units within their monitoring range, while diversifying to mitigate risk of their portfolios. Brazilian franchisees have created an active marketplace in which franchises are traded akin to commodities and franchises serve as schools or entrepreneurial “internships” for franchisees who seek new skills. A new framework of laddered diversification options in franchising is developed.

Suggested Citation

  • Marko Grünhagen & Manuel González-Díaz & Dildar Hussain & Haroldo Monteiro da Silva Filho, 2022. "Multibrand, multisystem and multirole franchising: A qualitative exploration and framework development in Brazil," Journal of Small Business Management, Taylor & Francis Journals, vol. 60(2), pages 253-288, March.
    • Handle: RePEc:taf:ujbmxx:v:60:y:2022:i:2:p:253-288
    DOI: 10.1080/00472778.2020.1800353
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    Cited by:

    1. Bretas, Vanessa P.G. & Galetti, Jefferson R.B. & Alon, Ilan & Rocha, Thelma Valéria, 2024. "Do stakeholders matter in entry mode decisions? An investigation of international franchise governance mode choice," Journal of Business Research, Elsevier, vol. 178(C).

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