Innovation in Franchising Systems—Stories of Poland and Croatia

Abstract

The goal of this paper is to present innovations in franchising in the context of implementing actions in franchise systems in Croatia and Poland. Franchisors in both countries have similar approach to innovation process in their systems—they have main role. Most franchisors are encouraging franchisees to innovate and most of franchisee’s innovations are being implemented in franchise system. Relationship in innovation process is two-ways and has to be communicated as such. The aim of this research and paper was to systematically analyze process of innovation in franchise systems in Croatia and Poland. Whereas studies of innovation in franchising systems in the western world have been made already, this is one of the first studies that are looking into innovation processes in franchising in Eastern Europe especially in Croatia since there was no official research in franchising. In both countries, franchisors have the main role in innovation process in franchise systems but they are encouraging franchisees to present their ideas in order to help further growth and success of the system. The paper’s findings show importance of innovation process in franchising and how it is being managed in both countries and they contribute to the franchising literature by providing new evidence on how to deal with innovations in franchising systems. Additional research should be conducted in relation to innovation in franchising system regarding to influence of innovation to future profits, increase of employment, growth of franchising systems, etc. in both countries.