Ownership redirection trends in franchising

Rajiv P. Dant (School of Management, Boston University, Boston, MA, USA)
Audhesh K. Paswan (School of Business, University of South Dakota, Vermillion, SD, USA)
John Stanworth (International Franchise Research Centre, Faculty of Business, University of Westminster, London, UK)

International Journal of Entrepreneurial Behavior & Research

ISSN: 1355-2554

Publication date: 1 December 1996


Franchising has long been seen as an avenue into small business. For some, it offers opportunities to build up franchise systems, as franchisors, by cloning small business success in exchange for a royalty. For many others, as franchisees, it offers opportunities for self‐employment, combining elements of the independence normally associated with self‐employment allied with the security derived from association with a tried‐and‐tested business system. However, there is an ongoing debate, the ownership redirection thesis, which suggests that franchise systems will only characteristically seek to involve franchisees in their business growth strategies during the early phases of business development. Thereafter, when finance, human capital and local market intelligence resources are no longer at a premium, the thesis predicts, franchisors will reduce their dependence on franchising with franchisees the prime casualties. Assesses the available evidence on the ownership redirection thesis and offers some fresh data on the issue.



Dant, R., Paswan, A. and Stanworth, J. (1996), "Ownership redirection trends in franchising", International Journal of Entrepreneurial Behavior & Research, Vol. 2 No. 3, pp. 48-67. https://doi.org/10.1108/13552559610153252

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Copyright © 1996, MCB UP Limited

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