Understanding Cultural Diversity in Franchising: Recommendations and Implications for Recruitment of Migrant Franchisees

Abstract

This chapter is a descriptive and exploratory study of the challenges and opportunities faced by franchisors in adapting their franchise systems to accommodate cultural diversity among franchisees. It uses literature on migrant entrepreneurs and cultural diversity in small business settings in the United Kingdom, Europe, and the Americas as a basis for application to a franchising context. Triggered by events in the Australian franchising sector over the past two years, in which franchise systems have been embroiled in controversial and illegal activities undertaken by franchisees – many of whom were business migrants – the research begins to unravel the complexities of utilizing migrant franchisees as vehicles of system growth. Two sources of data provide indicative evidence about the issues associated with migrant franchisees. Firstly, two surveys of franchisors were conducted in 2014 and 2016 to obtain descriptive data about the incidence of migrants as franchisees. Secondly, a series of focus groups provided insights into the challenges and opportunities faced by franchisors in recruiting and managing migrant franchisees. Tentative findings of best practice in accommodating migrant franchisees are revealed. This research begins to fill an important gap in the literature about cultural diversity in franchising.

Citation

Roberts, R., Frazer, L., Weaven, S. and Thaichon, P. (2020), "Understanding Cultural Diversity in Franchising: Recommendations and Implications for Recruitment of Migrant Franchisees", Ratten, V. (Ed.) Entrepreneurial Opportunities, Emerald Publishing Limited, Leeds, pp. 53-71. https://doi.org/10.1108/978-1-83909-285-520201006