Enrique Carlos Díez de Castro

Proposing new variables for the identification of strategic groups in franchising

The identification of strategic groups in the Spanish franchising area is the main aim of this study. The authors have added some new strategic variables (not used before) to the study and have classified franchisors between sectors and distribution strategy. The results reveal the existence of four perfectly differentiated strategic groups (types of franchisors). One of the major implications of this study is that the variables that build a strategic group vary depending on the respective sector the network operates in and its distribution strategy. This fact indicates that including sector and distribution strategy is absolutely necessary to achieve good classifications of franchisor types.

Reasons for the expansion in franchising: is it all said?

The main aim of this work consists of studying and analysing the reasons that drive firms to expand by means of the franchise route. A methodology based on latent class regression has been used, in order to explain the number of franchised units from a set of variables related to the adhesion costs, growth, and internationalization of the franchising chain. Two main conclusions are extracted from the results. On the one hand, the selected variables turn out to be suitable to explain the reasons that impulse companies to expand in franchising versus the development of owned units strategy. On the other hand, different profiles or types of franchisors exist according to the type of expansion chosen.