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Investment incentives for single and multiple unit franchisees

Scott Weaven (Service Industry Research Centre, Griffith University, Gold Coast, Australia)
Lorelle Frazer (Service Industry Research Centre, Griffith University, Gold Coast, Australia)

Qualitative Market Research

ISSN: 1352-2752

Article publication date: 1 July 2006

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2848

Abstract

Purpose

This paper aims to provide a better understanding of the motivational incentives driving franchising choice from the franchisee's perspective and, in particular, to investigate a comparison of single and multiple unit franchisee incentives.

Design/methodology/approach

A qualitative methodology was adopted to gain a clearer picture of the salient issues influencing an individual's evaluation of franchising options. Both single and multiple unit franchisees within the McDonald's restaurant chain were interviewed.

Findings

Major contrasts were identified between single and multiple unit franchisees with regard to their motivations for entering franchising. In addition, franchisees who were previously employed were found to be different from those who were self‐employed.

Research limitations/implications

Because it is difficult to identify potential multiple unit franchisees prior to joining a franchise, it was necessary to interview existing franchisees for this research. It is possible that their post‐hoc rationalisations may restrict the value of the research. In addition, motivational disincentives were not examined within this research. However, on balance, the reflections offered by the participants provide a rich and valuable source of information about their motivations.

Practical implications

Franchisors need to consider upfront whether they wish to recruit franchisees who remain single unit holders, or select and groom franchisees who show potential for managing multiple units. Thus, franchisors may need to redesign their selection strategies and communication methods to ensure the recruitment of suitable candidates who have the capacity to activate franchisor goals and promote a harmonious franchising relationship.

Originality/value

Whereas previous research has investigated motivations for entering franchising, this paper supplements that literature by comparing single and multiple unit franchisee incentives.

Keywords

Citation

Weaven, S. and Frazer, L. (2006), "Investment incentives for single and multiple unit franchisees", Qualitative Market Research, Vol. 9 No. 3, pp. 225-242. https://doi.org/10.1108/13522750610671662

Publisher

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Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited