Rozenn Perrigot

A Cross-Cultural Comparison of the Plural Forms in Franchise Networks: United States, France, and Brazil

This paper explores the phenomenon of plural forms (i.e., the simultaneous coexistence of franchised and company‐owned outlets, operationally, the proportion of company‐owned units in franchise systems based on literature, in franchising across three countries from three continents, namely the United States, France, and Brazil in what is ostensibly the first cross‐cultural comparison of its kind. Based on 2003 secondary data, we carry out a series of inferentially grounded analyses involving the plural forms phenomenon from an exploratory perspective. Though subsequently, comparative regression models are also evaluated using eight purported determinants of the use of the plural forms, the essential character of the paper remains essentially exploratory. The results show that the proportion of company‐owned outlets is almost three times greater in France and Brazil as compared to the United States. We also found that in the U.S. sample, three of the eight predictors significantly predict the occurrence of plural forms (namely, average total required investment and cash liquidity requirement have a negative impact, and company age has a positive impact); the French model was not statistically significant, whereas in the Brazilian sample, two predictors influence the plural forms phenomenon (i.e., total network size has a positive significant effect and incidence of internationalization has a significant negative impact).

Services vs retail chains: are there any differences ?

Purpose – This paper aims to review the differences between retailing and services in the particular context of franchised chains in order to highlight the main differences between retail chains and services chains.Design/methodology/approach – The existence of such differences is tested in the French context because its franchising sector is the most developed one in Europe as far as the number of chains is concerned. The empirical study deals with 530 chains among which 228 are services and 302 are retail.Findings – Some significant differences between services and retail chains are underlined in terms of age, plural form, franchising fees, franchising and advertising royalties, and contract length. Additionally to these significant differences, the new trend in franchising seems to consist in developing more services chains than retail chains.Research limitations/implications – This paper has some limitations. The focus is on only one country: France. A multi‐countries study could be useful to confirm ...

Intangible Resources and Plural Form as Drivers of Franchise Internationalization: Examination within a Two‐Country Perspective

This study focuses on drivers of franchise network internationalization, namely, intangible resources and plural form. Intangible resources refer to those that the franchisor acquires over time and are deemed instrumental to firm success, namely, brand name, monitoring, and know‐how transfer abilities. Plural form refers to the coexistence of franchised outlets and company‐owned outlets within the same network. The empirical study involves 853 U.S. and rench networks. Findings indicate that the percentage of company‐owned outlets in international networks is lower than that in purely domestic networks, and this holds for both the combined data sample (nited tates and rance) and the U.S. sample on its own. Moreover, U.S. franchisors are shown to be much more internationalized, with a smaller percentage of company‐owned outlets than their rench counterparts. The intangible resource that most strongly affects franchise internationalization is brand‐name recognition, whereas there is partial support for the impact of two other intangible resources, namely, monitoring and know‐how transfer ability. The results of the logistic regression models underscore the importance of intangible resources in franchise network internationalization as well as the significant and negative impact of percentage of company‐owned outlets. Finally, the drivers of internationalization are not found to be statistically different between both countries.

Possible applications of survival analysis in franchising research

Time is an important variable for retailers. The concepts of survival and duration, linked to this time variable, can be very interesting in franchising research. For instance, what are the determinants of the survival of a network or a store? Which elements decrease the period before franchising or internationalising a network? There is a well adapted but little-exploited methodology in this research area: survival analysis. Consequently, this methodological paper presents in detail survival analysis methodology before giving relevant examples of applications in the franchising field. Managerial implications of these kinds of research are given before the conclusion.

The plural form from the inside A study of franchisee perception of company-owned outlets within their network

Purpose – The purpose of this paper is to examine franchisee perception of company-owned outlets within their network. Design/methodology/approach – The paper uses a qualitative approach, based on 38 interviews of franchisees belonging to plural form networks from various industries. Findings – The interviews show that franchisees generally perceive the advantages of the plural form in terms of network development and management, but they also perceive some limitations, mainly in terms of network culture and cohesion, as well as potential conflicts and costs. Research limitations/implications – Limitations mainly concern the exploratory nature of this research. Practical implications – While they should keep on emphasising the benefits of the plural form, franchisors also have to reduce the perception of its limitations. They have to reinforce network culture and minimise internal conflicts. Originality/value – The paper contributes to the existing literature on the plural form by using a franchisee-based approach. In addition, contrary to most previous literature, it also highlights some limitations of the plural form.

Multi‐channel communication: the case of Subway attracting new franchisees in France

Purpose - The purpose of this paper is to highlight the various means of communication available to franchisors in attracting prospective franchisees more effectively than their competitors. In addition, it explores the potential use of Web 2.0 resources by franchisors. Design/methodology/approach - The simultaneous use of various means of communication by franchisors is examined through a case study. The authors have chosen one of the largest franchised chains in the world, which is in the process of expanding its chain of restaurants in many countries, with France being heavily targeted: Subway. Findings - This case study reveals the complementarities of push communication, pull communication, and communication relayed by influencers, along with the development of new means of communication through the use of Web 2.0 tools (Facebook, LinkedIn, YouTube, etc.). Research limitations/implications - This paper contributes to the stream of franchising and hospitality management literature. The limitations encountered stem mainly from the case study methodology. Practical implications - The implications of this research for franchisors relate primarily to the means of communication used in order to appear more attractive in the eyes of potential franchisees. This paper also provides prospective franchisees with a list of sources available to collect useful information in selecting the best-suited franchised chain to join. Originality/value - Few papers have assessed the way new franchisees are attracted from a franchisors perspective. The study of franchisor communication strategy and franchisor use of Web 2.0 resources to bring in new franchisees is indeed original, in comparison with the existing literature.

A multi-study investigation of outcomes of franchisees' affective commitment to their franchise organization

Franchisees’ affective organizational commitment refers to the degree to which franchisees experience an emotional attachment to their franchise organization. Using a social exchange theory perspective, this research reports four studies that explore the relationship between franchisees affective commitment and franchisee outcomes. We found that affective commitment to the franchise organization was positively related to franchisee objective performance (Study 1) and intent to acquire additional units (Study 2), and negatively related to franchisee opportunism (Study 3) and intent to leave the franchise organization, particularly when continuance commitment (i.e., commitment based on the cost associated with membership to the franchise) was low (Study 4). The implications of these findings are discussed.

Uniformity in franchising: a case study of a french franchise network with several franchisees having their own website

In many markets (developed markets and transitional ones), there is a continuous parallel development between online sales and franchising, whatever the industry: retailing and services. The development of online selling in the specific context of franchising has raised some issues. This article aims to explore the impact of the set-up of franchisee websites on network uniformity, which is a key element of franchising. We use a case study to examine different aspects of franchisee websites that can damage concept uniformity. This study involves Intercaves, a French franchise network in the wine and alcohol sector. Maintaining network uniformity when there are various websites set up and run by franchisees entails challenges that are presented in this article within a managerial perspective linked to technical and organizational know-how. The legal perspective in conjunction with intellectual and industrial property law, competition law, and international law is also discussed.

Corporate social disclosure in the franchising sector: insights from french franchisors' websites

This paper explores corporate social responsibility () within the franchising sector. More specifically, using regulation theory, stakeholder–agency theory, transaction cost analysis, and literature on plural form, along with an empirical study conducted on the franchising sector in the French market, we find significant and positive relationships between chain size and the extent of corporate social disclosure () on franchisors’ websites and between the percentage of company‐owned units within the chain and the extent of on franchisors’ websites. Moreover, though findings reveal that 86.03 percent of the 136 sampled franchisors communicate about at least one of their activities on their websites, differences in terms of highlighted categories (e.g., environment, human resources, and products) and the extent of available information exist.

An investigation into independent small business owners’ perception of franchisee relationships

Purpose – The purpose of this paper is to explore independent small business owners’ perceptions of franchisees relationships with their franchisors, their fellow franchisees within the chain, their employees and their customers. Design/methodology/approach – The authors use a qualitative approach and, more specifically, 26 in-depth interviews conducted with independent small business owners from various business sectors. Findings – These independent small business owners perceive that franchisees have a dependency-based relationship with their franchisors; a competition-based relationship with their fellow franchisees; a rather complicated relationship with their employees; and a superficial relationship with their customers. Research limitations/implications – This study contributes to the franchising literature by presenting an outside-chain view of franchisees’ relationships with their franchisors, other franchisees, employees and customers. Practical implications – The findings may have practical imp...