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The purpose of this paper is to provide insights on the franchise partner recruitment process and decision‐making criteria used to select partners. It aims to investigate the process and parameters considered by franchisees in selecting potential international hotel organizations as partners. The success of such choices influences growth of the firms and consequently affecting industry and economy.

In‐depth semi‐structured interviews with owners, directors, vice presidents and mangers of the franchisee organizations were deployed.

Findings suggest that partner selection is a multidimensional activity involving several key stages. Indian franchisees use profitability, brand name, operations support as decision‐making criteria while selecting their partners.

Differences occur at various stages of partner selection. A proper understanding of partner selection dynamics and careful consideration of criteria's like culture, organizational values, pricing, experience, etc. would result in a better building of relationship.

The paper highlights the complexity of the process and the decision‐making criteria from a franchisee's perspective. From a practical perspective, it could be of value to future and existing international hotel chains using franchising as a mode of expansion.

The purpose of this paper is to present a selection model that adopts several important criteria, enabling a durable goods franchiser to select franchisees that are most appropriate.

Questionnaires based on selection criteria are identified from modified Delphi Technique and then sent to experts and decision makers. Major criteria weights are analyzed using the analytic hierarchy process and entropy. Final weights are then determined using the compromised weighting method.

This study has demonstrated that the durable goods sector in Taiwan emphasizes the condition of a franchisee personal condition more than its store location, and our results further indicate that a franchiser should emphasize finance and business ability when selecting franchisees. Additionally, consumer purchasing power, individuals passing by and parking convenience are all important factors for selecting a franchisee.

Analysis results indicate that the proposed selection model enables a franchiser to select franchisees more reasonably by allowing them to operate effectively.

The purpose of this paper is to introduce strategy as a factor that explains when franchisors – through the franchisees they select – seek to replicate routines exactly versus allow local adaptation of routines.

Combined archival and survey data from 248 US and Canadian franchisors actively seeking franchisees were used to test hypotheses via structural equation modeling. The robustness of results was comprehensively explored.

As hypothesized, results suggest that franchisors pursuing plural form strategies select franchisees with traits that foster replication, such as prior managerial experience and the desire to become multi-outlet franchisees. Those franchisors pursuing turnkey strategies seek franchisees who exhibit a willingness to experiment and adapt. In contrast to expectations, plural form franchisors were more likely to seek franchisees with local market knowledge.

Strategy influences whether franchisors select franchisees who will replicate versus adapt organizational routines. The authors introduce strategy as a factor affecting the extent to which routines are replicated exactly versus adapted locally. For franchising research, they challenge prior theory by explaining why franchisors invest in franchisee selection rather than waiting for the best franchisees to self-select into franchising.

In spite of the important contributions of franchising to many economies, it remains unclear whether it truly provides a scope for entrepreneurial tendencies to flourish amongst franchisees. The purpose of this paper is to examine the debate surrounding the franchisee as an entrepreneur from the perspectives of the main contributors within the UK franchising sector, franchisors and franchisees, by analysing their entrepreneurial tendencies and the franchisee selection process.

The paper is based on an empirical study using a focus group and a survey approach.

The findings from this study demonstrate that franchisees have similar levels of entrepreneurial tendencies to franchisors. The results further indicate that franchisors appear to value entrepreneurial personalities within their franchised outlets, as demonstrated by their franchisee selection process.

By providing an indication of the extent of the franchisee’s entrepreneurial tendencies, this study expatiates on major arguments in the franchising and entrepreneurship literature, which are also profound amongst practitioners in the fields of franchising and entrepreneurship.

This paper aims to extend current understanding of organisational choice theory through examining to what extent firm‐level factors influence the growth of franchisee‐owned mini‐chains within Australian franchise systems. In particular, this study examines how the age of the system, corporatisation of management processes, plurality of distribution, levels of intra‐firm conflict and franchise system complexity influence multiple unit franchising adoption.

A qualitative methodology was adopted to gain a clearer picture of the salient issues influencing multiple unit franchising adoption from the franchisor's perspective.

The research reveals that mature franchise systems in Australia use sequential methods of multiple unit franchising expansion in order to minimise adverse selection costs and leverage learning economies derived from previous experiences in managing intra‐firm channel relationships.

Industry‐specific influences and differences in managerial orientations may limit the predictive application of this study to all franchise systems. However, on balance the reflections offered by the participants provide a rich and valuable source of information about the factors influencing their willingness to encourage this growth strategy.

Franchisors need to consider upfront whether they are ready and able to encourage multiple unit ownership within their systems. Less experienced franchisors may need to corporatise operations, minimise channel conflict and introduce administrative support procedures to ensure the recruitment of suitable franchisee candidates who will assist in realising the franchisor's goals, thus promoting a harmonious franchising relationship.

Whereas, previous research has investigated motivations for encouraging multiple unit franchising, this paper supplements that literature by examining multiple unit franchising within Australia.

Although international franchising has occurred in East Asia over the past 20 years, surprisingly very little academic research has been undertaken to understand key dynamics of this marketing phenomenon. The purpose of this paper is to examine franchise resources, which is a key construct in the internationalization of retail franchising.

A multiple case study approach has been adopted to generate rich data designed to aid understanding of the complexities inherent within such an international marketing relationship. The data were drawn from five US food service retail franchises, which are household brands across East Asia, operating in Singapore.

This study presents several interesting findings for the retail franchise industry. First, consistent with resource scarcity theory, international franchising relationship begins with a high degree of franchise dependency on the local franchisees. Next, international franchisors will be well served to select their overseas franchisees with strong financial resources to engage in rapid expansion, good contacts to secure early stores in prime retail locations and well‐proven local knowledge to modify the concept to suit particular market needs.

Findings from this study have important managerial implications for international retail franchisors on how to effectively select franchisees to successfully launch and manage their brands in East Asia.

This empirical study has made a major contribution in adding to the limited body of empirical knowledge on franchisee selection in international retail franchising, particularly in East Asia. It is hoped that this paper will encourage more academics to investigate why certain international retail franchise concepts perform relatively better in East Asia than others.

This paper analyses operational differences between mobile franchising arrangements and fixed‐site franchises from an agency‐theoretic perspective. Almost 40 per cent of all franchised units in Australia operate as mobile or home‐based businesses, predominantly in service industries where products or services are provided directly to consumers. A two‐stage methodology is reported in this paper, incorporating quantitative and qualitative research methods. In stage one, data obtained from a survey of the population of Australian franchisors in 1998 are analysed to compare operational variables of mobile and fixed‐site franchise units. The second stage of the research employs in‐depth interviews with a sample of mobile franchisors and franchisees to further explore relevant issues. The results confirm the agency theory perspective that start‐up investment risk is lower in mobile units and mobile operations exhibit a higher level of repeat customers than fixed‐site franchises. No significant differences between the two arrangements are revealed in relation to the levels of franchisee monitoring, initial training or essential franchisee experience. This study indicates that agency theory contributes to our understanding of mobile franchising arrangements, yet also suggests the findings are not completely explained by agency theory. The results imply that both monitoring and alignment of incentives have complimentary effects and that both forms of contract are necessary in a franchisor's control system.

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.

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.

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.

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.

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.

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

Discusses a recent study into the level of satisfaction experienced by franchisees in the Australian restaurant sector. A model of consumer buying behaviour was used to identify the characteristics of both franchisers and franchisees which contribute to owner‐manager satisfaction with the purchase and operation of a franchised small business. The post‐purchase intentions of franchisees, were also investigated. Based on the survey findings from nine companies and 127 of their franchisee owner‐managers, provides prognostic and diagnostic frameworks to assist both franchisers and franchisees in their selection of a suitable business partner and in specifying appropriate remedial action in marginal franchised outlets.

Although Australian franchising sector regulation promotes system disclosure and provides for mandatory conflict mediation, there is some concern that inequities exist within the conflict management process. From 2006 to 2008 no less than four government inquiries into franchising took place in Australia in an attempt to resolve problems occurring in the sector. A major issue was that of the perceived imbalance of power in the franchisor‐franchisee relationship, which often results in conflict between the two parties. The purpose of this paper is to extend the conflict literature in dyadic exchange relationships through investigating the causes of conflict from the franchisor and franchisee perspectives.

Exploratory research is undertaken to identify the major causes of franchising conflict. Face‐to‐face interviews are conducted with 24 franchising experts, such as lawyers and mediators, to draw upon their considerable experience in the sector.

The key findings suggest that a lack of due diligence is associated with the formation of unrealistic expectations which increases the potential for future relational conflict. Although franchising experience impacts upon operational approaches and conflict, the role played by third parties and market conditions both appear to exacerbate dissatisfaction in franchise systems.

This research is exploratory and therefore the findings are tentative. The preliminary conceptual models will be tested in a large quantitative survey of key franchising stakeholders in the near future.

With the Australian franchising sector presently under intense scrutiny by regulators this research is timely and important. It is expected that the findings will provide government and industry representatives with a more balanced understanding of the causes of franchising conflict so that preventative action may be taken.