Franchising

Spinelli, Steve

doi:10.1002/9781118256121.ch14

Cited by 2 publications

(2 citation statements)

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“…The consequence of such changes is that the original allocation and definition of franchise territories and market areas may become outdated as a franchise system matures. For example, franchisors may find that there are opportunities to establish additional units in a territory or market area because market potential has exceeded expectations at the roll-out stage and may therefore want to restructure the territories or market areas both to take advantage of such growth opportunities and to minimize the threat of 'me-too' competitors (Ghosh and Craig 1991;Stassen and Mittelstaedt 1995;Zeller, Achabal, and Brown 1980;Spinelli 2004). These expansion opportunities may be restricted to specific parts of the franchise system and therefore affect only a small number of territories or market areas.…”

Section: Franchise Network Allocation and Dynamicsmentioning

confidence: 98%

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Franchise network restructuring: Pressures, constraints and mechanisms

Cox

Mason

2009

Entrepreneurship & Regional Development

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Franchised businesses operate on the basis of granting individual franchisees trading rights to serve territories or market areas on either an exclusive or a non-exclusive basis. The design of these territories is generally undertaken during the roll-out phase of the franchise. However, these territories and market areas may become sub-optimal over time, necessitating restructuring. However, if the franchisor has granted exclusive rights to a territory then this is likely to involve a breach in the franchise contract. In cases where existing franchisees do not have exclusive territories they may nevertheless make a legal challenge to the creation of additional franchises on the grounds of encroachment. This paperwhich is based on a study of 40 franchisors in the UK -examines how franchisors go about network restructuring in constrained and non-constrained situations. Franchisors typically did not act on their legal rights, echoing findings of earlier franchising studies which reveal a divergence between contractual rights and operational behaviour. This focus on network restructuring also provides new perspectives on the reasons for ownership reversion and the growth of multi-unit franchisees.

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Section: Franchise Network Allocation and Dynamicsmentioning

confidence: 98%

“…Moreover, leaving parts of a territory under-exploited could also attract competitors (Spinelli 2004). Conversely, small territories and market areas may lack sufficient market potential, putting the survival of franchise outlets at risk (Mendelsohn 1991).…”

Section: Franchise Network Allocation and Dynamicsmentioning

confidence: 99%

Franchise network restructuring: Pressures, constraints and mechanisms

Cox

Mason

2009

Entrepreneurship & Regional Development

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New directions of funding the activities of small and medium-sized enterprises in Kazakhstan

Мухамедьярова-Левина

Селезнева

Сигаев³

2021

jour

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The development of small and medium-sized enterprises is of great importance for the economy of Kazakhstan. Despite the fact that state support largely contributes to positive changes in this area, the competence and interest in promoting the business of entrepreneurs themselves is crucial, which implies using all the opportunities that the market provides. The article emphasizes that currently, leasing and factoring are often an alternative to bank loans for entrepreneurs in Kazakhstan. However, these types of financing are characterized by high cost and do not have obvious advantages as a funding tool for small and medium-sized enterprises compared to bank loans. It is suggested that an alternative to this method of raising funds can be P2B lending, which involves the flow of funds from the investor to the borrower without the participation of intermediary financial institutions. In addition to finding optimal sources of financing, SMEs should pay attention to the use of alternative business methods. In this sense, franchisors have great prospects.

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Franchising

Cited by 2 publications

References 0 publications

Franchise network restructuring: Pressures, constraints and mechanisms

Franchise network restructuring: Pressures, constraints and mechanisms

New directions of funding the activities of small and medium-sized enterprises in Kazakhstan

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