Franchising Hospitality Services

Citation

Ingram, H. (2001), "Franchising Hospitality Services", International Journal of Contemporary Hospitality Management, Vol. 13 No. 5, pp. 267-268. https://doi.org/10.1108/ijchm.2001.13.5.267.1

Although not new, franchised retailing outlets can be increasingly seen on high streets around the world, not least in hotels, restaurants and pubs. While brands are at the centre of the marketing of effective product and service offering, the trend towards more franchised outlets seems set to continue. Lashley and Morrison recognise the growing significance of this business format and, in the preface of this edited book, show forecasts that the number of UK franchised units will double from 66,670 in 2000 to 121,963 in 2002. They have structured the book in two parts – the first considers franchising organization and debates, and the second franchising at subsector level (catering, hotels, licensed retail and travel trade and transport).

Stephen Taylor is the first contributor, who introduces the concept of franchising as a development of the theory of the firm, arguing that the symbolic relationship of franchisers and franchisees is based upon a mutual ongoing interest. The rise of franchising is described as a response to resource scarcity (capital, labour, managerial talent, marketing clout) that can limit expansion for smaller firms. In the second chapter, Christine Furlop maps the history and development of franchising as a partnership (although unequal), where the power distribution is altering in favour of the francisees. Some interesting insights here on the management of conflict caused by power relationships in practice.

Chapter 3 (Stuart Price) argues strongly that the literature on franchising has failed to assess its promise meaningfully. Price poses the key question? “Is franchising all it is cracked up to be?” He argues that the rhetoric has, as yet, been largely unproved by supporting empirical evidence and that the limited research is hindered by some inappropriate methodologies. Sadly, this is the case for much of the hospitality industry.

There follow chapters by the editors on franchisees as entrepreneurs or intrapreneurs (Alison Morrison) and empowered franchisees (Conrad Lashley). Both write with authority and manage to weave in their own areas of interest to the chapters. Chapter 5 (Alison Morrison and Angus Macmillan) considers some of the financial fundamentals, concluding the franchising is often not the low‐cost business development format that is often assumed, and that to underestimate the degree of capital investment is a mistake.

Part 2 addresses aspects of franchising at sub‐sector level, including catering (Stephen Ball), hotels (Stephen Taylor), licensed retail (Conrad Lashley and Guy Lincoln) and travel trade and transport (Lesley Pender). Each offers real insights on the scope and issues of franchising in these important hospitality sub‐sectors. Finally, Conrad Lashley presents a case study of McDonald’s Restaurants, again drawn from his interests and expertise.

For an edited book there is much coherence and integrity of style. This is perhaps partly explained by contributions by a small (but select) group of key academics, including the editors. This might be regarded as slightly incestuous, but it must be remembered that expertise in this key topic is sadly limited. In summary, this book hangs together well, skilfully blending theory and practice in an attempt to explain and provoke much‐needed debate in this neglected topic.