Socio-economic determinants of support and brand value perception: a survey of microfranchisees

Abstract

The franchising industry in Brazil has been growing for more than 10 years. In this market segment, microfranchises act as franchises whose initial investment amount is up to US$ 26,000. The purpose of this study is to verify if there is variation in the microfranchisee's perceived value regarding the support provided by the franchisor and the development of the franchise chain brand due to their socio-economic class. The variables used were training, prospecting and installation of the franchise unit, legal and financial support, and field consulting and operating manuals. In relation to the brand, the variables used were advertising and promotion, brand strength, and customer loyalty. All variables are quantitative. A total of 148 microfranchisees in Sao Paulo were selected for the survey. Results demonstrate that microfranchisees' perceptions of support and brand value are not related to their socio-economic background as microfranchisors could expect. The franchisors' decision of selecting franchisees does not consider their socio-economic characteristics as predictors of support and brand image perception.