Franchising theories: a case study of pre and post franchising decision

• Autor(a) principal: Dermonde, Matheus
• Data de Publicação: 2023
• Outros Autores: Gomes, Silmara Cristiane, Garcia, Renato de Castro
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: REMark - Revista Brasileira de Marketing
• Texto Completo: https://periodicos.uninove.br/remark/article/view/23443
• topic: Franchise; Franchising; Resource scarcity theory; Agency theory; Franquia; Franchising; Teoria da Escassez de Recursos; Teoria da Agência

Objective: This work aimed to analyze and compare how franchising theories are applied to pre franchising decision (motivations) and to its first years of operation (effects of the decision) by a franchisor from a developing country, thus characterizing a longitudinal analysis of brand franchising.Methodology (approach used): Qualitative in nature, the research conducted a case study of a brand developed to become a franchisor in the most relevant segment in Brazil (food and beverage), inspired in one of the largest North American franchisors. Data were collected by means of two interviews conducted with one the brand’s entrepreneurs (Executive Director) in 2018 and 2022, and complimented by documentary analysis. The information collected was investigated by content analysis.Main results: Mobilization of Financial Resources and Development of Economies of Scale were paramount for franchising decisions, bringing positive impacts after conversion. Although factors such as Franchisee’s Local Knowledge and Minimization of Monitoring Costs played a lesser role in decision-making, they nonetheless benefited the franchisor.Theoretical/methodological contributions: This research contributes to the literature on franchising by exploring franchisor expansion in a developing country. At the same time, it contributes by performing a longitudinal analysis of the franchisor expansion, investigating the motivations for franchising decision and its effects.Originality/Relevance: Its main originality consists in the longitudinal analysis of brand franchising, differing from the retrospective approach usually adopted.