Abstract
This paper highlights the complexity of the franchise partner selection process from a franchisee's perspective. The purpose of this article is, firstly, to propose the definition of a system of indicators which include all the relevant information which the potential franchisee should take into consideration when choosing a chain secondly, to obtain a global composite indicator for the construction of a ranking of franchisors. In order to illustrate the procedure, a sample of travel agency franchisors in Spain and a suitable database to quantify the indicators are considered. The paper concludes constructing a complete order of the franchisors in the travel agency industry. In addition, the results show the most important characteristics of franchisors that potential franchisees must take into account. The value of the paper is significant as it provides a practical frame – work for potential franchisees in the selection of franchisors.
Highlights
Franchising represents an important contributor towards the economy of many countries, since it plays a vital role in the development and growth of small businesses (Rahatullah, Raeside 2009)
This enables the potential franchisee to assess a specific aspect of the chain at the same time, it remains necessary to attain a combined assessment of the various strategic dimensions, so that the potential franchisee can make an informed comparison between the different franchisors
Before aggregating the information, the values of the indicators are standardised by applying the minimum-maximum standardisation procedure, and their values are expressed in a non-dimensional scaling range of [10,100]
Summary
Franchising represents an important contributor towards the economy of many countries, since it plays a vital role in the development and growth of small businesses (Rahatullah, Raeside 2009). Franchising data from various parts of the world confirms that this business system constitutes a significant and increasingly popular aid to economic growth. Franchising can be viewed as a particular type of partner selection (Altinay 2006; Clarkin, Swavely 2006; Jambulingam, Nevin 1999) or as a type of collaborative business with the existence of a profit-sharing problem. Blancas-Peral et al Choosing a travel agency franchise by mean of a global composite
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