Research contributions to understanding franchising

Outsourcing recruitment as a solution to prevent discrimination: A correspondence study

“…The management research literature has focused on the relationship between franchisee and franchisor and the benefits for each in that relationship. In particular, for the franchisor, a strategy is to replicate its business model and management system (Hoy et al, 2017). An individual's decision to become a franchisee generally stems from a desire to become independent (Feldstead (1993a), Kaufmann and Stanworth (1995), Peterson and Dant (1990)).…”

“…An individual's decision to become a franchisee generally stems from a desire to become independent (Feldstead (1993a), Kaufmann and Stanworth (1995), Peterson and Dant (1990)). As franchising allows individuals seeking greater autonomy and independence, with little or no prior experience (Kaufmann, 1999) or technical knowledge (Williams, 1999) to enter the market, there is an expectation on the part of franchisees that the franchisor will provide the necessary support for the business to be successful (Hoy et al, 2017). Some of the literature has studied the specificities of franchises in terms of human resources management.…”

Are franchisees more prone to employment standards violations than other businesses? Evidence from Ontario, Canada

“…Since that time, franchising has become a worldwide phenomenon (Blair and Lafontaine, 2005). While debate continues over an absolute definition of franchising (see Frazer and Grace, 2017; in Hoy, 2017), we adopt Curran and Stanworth’s (1983) popular working definition, defining franchising as a business model in which one entity (the franchisor) enters into a contract with another entity (the franchisee) who is independently financed to operate under the franchisor’s trade name as an owner-manager providing a good or service using a market-tested format specified by the franchisor. As a condition of using the franchisor’s format or model, franchisees also typically pay royalties and/or an upfront fee (Stanworth and Curran, 1999: 326).…”

“…Within these fields, the central concern has been the growth and efficiency of franchising as it relates to organisational form, legal contracts, supply chain management, the impact of technology, or how parties in franchising navigate challenges and cultivate opportunities (see Combs et al, 2011; Dant and Kaufmann, 1999a, 1999b; Fried and Elango, 1997; Hoy and Shane, 1998; Lafontaine, 2014; Shane and Hoy, 1996). More recently, these fields have also paid increasing attention to franchising in emerging markets, and in social entrepreneurship (see Hoy, 2017). While informative, this literature focuses primarily on issues in franchising that pertain to the creation of wealth for enterprises and their owners.…”

“…Conservative estimates suggest that as of 2018, franchising contributed over USD1.75 trillion, or 2.7% to annual global gross domestic product (GDP). 1 Franchised businesses are estimated to employ more than 21 million people across 3 million locations, and in over 40,000 brands (Hoy, 2017). But for many workers in franchised businesses, jobs are precarious, or concentrated in industries with high rates of precarious employment (Bennett, 1994; Weil, 2009, 2011).…”