The specifics of knowledge transfer in franchising. The case of a beauty salon

Abstract

The transition from a direct sales business model to a franchise model requires a review of the company’s strategy, structure and key business processes. One of the key tasks for the company’s management is knowledge management, which plays an important role in ensuring its competitiveness. Changing the business model involves alterations in the value chain and organizational structure of the company in the context of franchising.This study focuses on the business format franchise, where the management company not only transfers the right to a product and service, but also provides a complete business format, including a marketing strategy, quality standards, and a set of organizational knowledge about the specifics of providing services. Using the example of the 4hands manicure and pedicure salon network, practical aspects of transformation are demonstrated, such as the transfer of operational functions to franchisees and difficulties in communication within the network. The importance of effective knowledge transfer is emphasized as one of the factors of sustainable growth of the franchise network. Knowledge is also considered as a strategic resource that provides a competitive advantage of the company, which is confirmed by the analysis of the VRIO model.