Concept Uniformity: Control Versus Freedom in Business Format Franchising

Streed, Odile; Cliquet, Gérard

doi:10.1007/978-3-7908-2058-4_12

Cited by 10 publications

(3 citation statements)

References 16 publications

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“…Indeed, the conjunction of these elements translate into delivery rates adapted to the needs of each store per type of temperature, which size is optimised, and thus, lead to a better global command of logistical costs. Here, we join Streed & Cliquet's (2008) suggestion which considers that the performance of a franchise network rests on the capacity to face a growing individualisation of demand thanks to an advanced customisation of the service offer.…”

Section: Selling a Customised Service To Franchiseesmentioning

confidence: 79%

An Investigation of Logistical Service in Franchising System

Allègre

Fulconis

Paché

2014

International Journal of Service Science, Management, Engineering, and Technology

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In the past forty years, the franchising system has undergone a remarkable expansion, notably in France, retaining more and more the attention of economy and service management researchers. A recurring question relates to the sources of competitive advantage that a franchise network may have. This paper intends to contribute to the debate based on the fundamentals of the resource/competence-based view, and applying the reflection to the case of the logistical service. Based on a case study driven within a franchise network, it is possible to conclude that the supply chain competences of a franchisor play an important role in the level of perceived satisfaction of franchisees when customised solutions are proposed thanks to information technologies.

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Section: Selling a Customised Service To Franchiseesmentioning

confidence: 79%

An Investigation of Logistical Service in Franchising System

Allègre

Fulconis

Paché

2014

International Journal of Service Science, Management, Engineering, and Technology

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“…The success of service sector businesses is based on the management of their intangible assets (Watson et al , 2005). However, most fast food chains are a special case because they have built their business model on uniformity, developing rigid systems that require constant monitoring to function without problems (Streed and Cliquet, 2008).…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Determinants of firm size in the franchise distribution system

Polo‐Redondo

Bordonaba‐Juste

Palacios

2011

European Journal of Marketing

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PurposeThe purpose of this paper is to examine three strategic decisions that determine firm size in the franchise distribution system: price policy, the timing decision, and network ownership.Design/methodology/approachThe paper uses data covering 384 franchise chains operating in the catering and fashion retailing sectors for an 18‐year period (from 1986 to 2004). The panel data methodology is applied.FindingsThe paper finds that the pricing policy and the ownership structure can be used to attract new franchisees and it also finds empirical evidence of the advantages of early followers. Some differences are found between the two sectors analysed. Additionally, it finds evidence of the use of different strategies by mature and young franchise chains.Research limitations/implicationsThe focus is only on the fashion and catering sectors in the franchise industry. Although they are the two most important sectors in the Spanish market, this limitation provides researchers with interesting possibilities for further research in other countries and in other sectors.Practical implicationsThe results may help franchisors to know which strategies can increase their system size. First, franchisors should focus on minimizing their control of the network strategy. Second, franchisors should increase the franchise fee and the royalties as the chain matures to expand their system size. Third, managers who are planning to begin to franchise their businesses should decide to enter at the growth stage of the franchise market in order to achieve greater advantages.Originality/valueThis paper highlights the importance of the price strategy and of the entry timing decision in the franchising context in countries where the franchise system is still developing.

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“…Some recent studies have also shown that the front office, i.e. everything in front of the customer, can be totally localized, whereas the back office dealing with logistics and production could be more or less integrated and standardized (Streed and Cliquet, 2008;Terry and Di Lernia, 2013).…”

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confidence: 99%

Network uniformity and risk of reclassification of the franchise contract

Perrigot

Basset

Briand

et al. 2014

International Journal of Retail &Amp; Distribution Management

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International audiencePurpose - Network uniformity is crucial in franchising, but an excessive number of imposed constraints to maintain this uniformity jeopardizes a franchisee's independence and too much independence given to franchisees jeopardizes franchise network uniformity. So, how to find an equilibrium and avoid the reclassification of a franchise contract as a branch manager contract or as an employment contract with all its related consequences? The paper aims to discuss these issues. Design/methodology/approach - The research is based on a multiple cases approach. The four complementary cases deal with Yves Rocher (cosmetics and body/face care), Bata (shoes), Fiventis (real estate, life insurance and tax-sheltered savings products), and France Acheminement (express transportation), all analyzed in the French context. Findings - A franchise contract can be reclassified as a branch manager contract if there is economic dependence or as an employment contract if there is a legal subordination relationship. These reclassifications have not only financial consequences, but also an impact in terms of image. Research limitations/implications - The research is based on secondary data. Collecting data along with interviews of franchisors and franchisees would be beneficial. Practical implications - The research is of specific interest to franchisors, franchise experts and lawyers in terms of minimizing the possible risks of facing such types of reclassification of franchise contracts. It can also inform franchisees who may be running their businesses under such conditions. Originality/value - This paper uses a business and law approach in order to analyze the paradox of network uniformity and franchisee autonomy and raises the question of "how to find equilibrium?

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Concept Uniformity: Control Versus Freedom in Business Format Franchising

Cited by 10 publications

References 16 publications

An Investigation of Logistical Service in Franchising System

An Investigation of Logistical Service in Franchising System

Determinants of firm size in the franchise distribution system

Network uniformity and risk of reclassification of the franchise contract

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