Franchise Expansion Research Articles

FranchiseGlobal.com: Digital Media Strategy in the Development of Franchise Industry and Business Opportunities in Indonesia

The franchise and business opportunity industry in Indonesia has experienced significant growth, particularly with the emergence of digital media platforms that facilitate connections between franchisors and prospective franchisees. FranchiseGlobal.com stands as a key online media platform playing a pivotal role in this industry. This study aims to analyze the digital media strategies employed by FranchiseGlobal.com in advancing the franchise and business opportunity sector in Indonesia. The research adopts a descriptive analysis with a case study approach, focusing on FranchiseGlobal.com's business model, digital marketing strategies, and its role in supporting franchise expansion. The findings reveal that FranchiseGlobal.com has effectively utilized digital media to enhance franchise visibility through services such as advertising, content distribution, and online business matching. The study concludes that an effective digital strategy can significantly contribute to the growth of the franchise industry in Indonesia, particularly by leveraging online platforms that reach a broad and targeted audience.

Retail franchise ecosystem dynamics: Insights from countries of varied development levels

This study explores the influence of entrepreneurial ecosystems on international franchise expansion. We understand franchising as a part of retailing and reflect on various country-level factors that impact the international franchise growth in 52 developed and emerging markets. We classify developed and emerging markets based on the Human Development Index (HDI). Employing an entrepreneurial ecosystem framework initially applied to new business growth in cities, we investigate how cultural, institutional, economic, and infrastructure factors affect franchise growth. Our findings indicate that well-developed infrastructure, economic freedom, and supportive laws contribute to franchise expansion, while locations with high crime rates are less attractive to franchise expansion. Surprisingly, increased internet access or higher spending on research and development does not consistently further franchise expansion. Countries with higher levels of human development tend to have franchises that are expand more rapidly. However, we found little difference between countries with very high development and those with high development standards. This study helps us understand what makes franchise business expansion work and how they can succeed in different countries. Implications for businesses and governments looking to support franchise growth are explained. Finally, the results reflect the importance of understanding the unique dynamics of emerging markets and offers actionable insights for businesses and policymakers aiming to foster retail ecosystems and franchise on these specific markets entrepreneurship globally.

Franchise Potential in Food Industry Expansion Strategies in East Kalimantan

This study investigates the franchise potential in the food industry as part of expansion strategies in East Kalimantan, with a focus on the Wong Solo Group amid Indonesia’s capital relocation. Utilizing qualitative methods, including SWOT, PESTLE, Porter’s Five Forces, and the VRIO framework, the research provides a comprehensive analysis of strategic positions and opportunities for business expansion. The study reveals significant opportunities for growth driven by demographic changes, economic development, and increased consumer spending. Key findings indicate that Wong Solo Group’s established brand and operational expertise offer a strong foundation for expansion. However, challenges such as regulatory changes and intense competition need to be addressed. The SWOT analysis highlights internal strengths such as brand reputation and product innovation, while the PESTLE analysis underscores external opportunities and threats. Porter’s Five Forces analysis identifies competitive pressures within the food industry, and the VRIO framework assesses the group’s resources and capabilities. The study concludes with strategic recommendations for Wong Solo Group to leverage its strengths, address its weaknesses, capitalize on opportunities, and mitigate threats. These recommendations aim to ensure successful franchise expansion in the dynamic market environment of East Kalimantan, providing a roadmap for sustained growth and competitive advantage.

Etika Bisnis Islam: Pendekatan Siklus Ekonomi dan Praktik Bisnis Syariah dalam Ekspansi Waralaba Industri Retail

In this era of globalization, franchise expansion has become one of the main strategies for the growth of the retail industry. However, in a business context governed by Islamic principles, the concept of business ethics becomes increasingly relevant. This article explores the role of Islamic Business Ethics in the context of franchise expansion in the retail industry, with a focus on economic cycles and sharia business practices. Through a literature review, this article describes how Islamic business ethical values can direct franchise expansion steps, manage risks in fluctuating economic cycles, and implement sharia business practices that are in accordance with Islamic principles. This research discusses the implications of Islamic business ethics in strengthening the foundations of sustainability and long-term success for the retail industry which focuses on the principles of justice, social responsibility and economic balance. The research results show that the application of Islamic business ethics in franchise expansion in the retail industry can improve business performance, strengthen consumer trust, and promote business sustainability. This research highlights the importance of understanding and applying the principles of Islamic business ethics in the context of modern business, especially in the retail industry.

A qualitative exploration of the franchise establishment process: a case study analysis of “Moana Pasifika” and “Fijian Drua”

PurposeLeague expansion involves a significant investment of time, money and resources. Therefore, ensuring the success of new franchises is imperative to the commercial health of a competition; however, there is an absence of studies examining the establishment process of franchises. In 2020, Super Rugby announced that it would expand in 2022 with the inclusion of two new franchises, Fijian Drua and Moana Pasifika. The article explores what implementation challenges Drua and Pasifika faced during franchise establishment.Design/methodology/approachFollowing a qualitative case study methodology, data were collected via newspaper, website and document repository ‘Nexis’, and triangulated against interviews with five expert individuals involved in franchise establishment. Applying mixed-coding, thematic analysis using Redmond's franchise expansion factors framework, six deductive and two inductive themes were generated.FindingsIn accordance with Redmond's franchise expansion factors framework, financial sustainability, competitive balance and labour market challenges were identified as internal challenges, whilst media relationships, market competition and community engagement were highlighted as external challenges. Additionally, two new factors, infrastructure and business operations and youth development, were inductively identified as issues during franchise establishment extending Redmond's model.Originality/valueThe study offers strategic guidance to practitioners on franchise establishment and provides insight into cross-border expansion processes. Theoretically, the research supports and extends the applicability of Redmond's expansion factors framework for future research.

Where to Go Next? Examining the Effect of Franchise Expansion and Location on Game-Level Attendance in Major League Soccer

Using a large dataset with over 4,000 game-level observations from Major League Soccer over the period 2006 to 2019 we investigate the determinants of attendance demand. Focusing on franchise expansion and location effects, we find that some decisions made by the organization had positive impacts on league revenues. While going to cities with a large population and already hosting nearby NFL or NBA teams is positively associated with game attendance, the presence of geographically close MLB and NHL teams is detrimental to MLS revenues. Our results suggest a need for a more nuanced and selective approach to MLS expansion policy.

Applications of a geographic information system–based business intelligence system for decision making at Coffee Refresh

This case is designed to illustrate how to utilize a business intelligence framework and a geographic information system to make better decisions on franchise opening requests. The case started when Jong, the senior certified analytics professional, and his team were drafting a proposal presentation on a new franchise approval process to present to Tony, the director of Coffee Refresh. Currently, Coffee Refresh was experiencing a significant delay in approving franchise opening requests. In addition, the current approval process was relied on the appraisal teams’ evaluations, which involved self-judgment as to the accessibility and visibility of the store location in each franchise opening request and a manual count of the potential targeted customers at each location, which impacted how the appraisal teams estimated the expected revenue for each location. During the first meeting with Jong and his team, Tony was frustrated by the current evaluation process, resulting in a significant backlog of requests pending approval, which was far behind the target for its franchise branch expansion strategy. It had also been reported that the branches that opened during the past few years had a relatively low success ratio (losses between 4.8% and 16.5%) and that the rate of branch closures had increased from 2% to 7.5%. Currently, eight franchise opening requests were pending, and Jong had to provide a recommendation for which requests should be approved. Coffee Refresh could approve all of them instantly, approve some of them, or even decline all of them. This was a great opportunity for Jong and his team to revisit the current franchise approval process and to demonstrate how business intelligence systems could improve the request approval process as well as address the issues of the current franchises’ underperformance and the closure rates.

Slavery, Reconstruction, and Bureaucratic Capacity in the American South

Conventional political economy models predict taxation will increase after franchise expansion to low-income voters. Yet, contrary to expectations, in ranked societies—where social status is a cleavage—elites can instead build cross-class coalitions to undertake a strategy ofbureaucratic weakeningto limit future redistributive taxation. We study a case where status hierarchies were particularly extreme: the post-Civil War American South. During Reconstruction, under federal oversight, per capita taxation was higher in counties where slavery had been more extensive before the war, as predicted by standard theoretical models. After Reconstruction ended, however, taxes fell and bureaucratic capacity was weaker where slavery had been widespread. Moreover, higher intrawhite economic inequality was associated with lower taxes and weaker capacity after Reconstruction in formerly high-slavery counties. These findings on the interaction between intrawhite economic inequality and pre-War slavery suggest that elites built cross-class coalitions against taxation where whites sought to protect their racial status.

Factors of Malaysian Home-Grown Franchise Expansion into International Market: A Case of Education and Learning Centre

Factors of Malaysian Home-Grown Franchise Expansion into International Market: A Case of Education and Learning Centre

Country dispersion in international franchising: system, proportion, and performance

PurposeThe purpose of this paper is to examine whether operating countries influence restaurant franchising system performance and what would be an optimal international franchise proportion.Design/methodology/approachThe authors observed ten publicly traded franchise firms that operated between 1995 and 2015. Data analysis is conducted through a generalized linear model (GLM) of panel data.FindingsThe model confirms a curvilinear U-shaped relationship between international franchise expansion and firm performance, similar to domestic franchising. The authors found that international franchisors have a higher optimal franchise proportion than domestic franchisors. The authors did not find that operating countries influence firm performance.Originality/valueThis study contributes to franchising literature by expanding limited empirical studies on international franchising. It provides practitioners with a new optimal franchise proportion at the international level.

Courting the First Nations Vote: Ontario’s Grand River Reserve and theElectoral Franchise Actof 1885

This article begins with an examination of the controversy caused in 1885 by the Macdonald government’s expansion of the dominion franchise to First Nations reserves in eastern Canada, a controversy that revolved around the liberal tenet that the right to vote should be intrinsically linked to independent property ownership. It then discusses the role of the Grand River Six Nations and Mississaugas in the elections and by-elections that took place in the Ontario ridings of Brant South and Haldimand between 1886 and 1897, the year before the Laurier government abolished Macdonald’s Electoral Franchise Act, with the result that treaty status Indians would not regain the vote in national elections until 1960. The picture that emerges is of an Indigenous community torn between conflicting forces, with traditionalists opposing participation in Canada’s elections, reformers supporting the franchise as well as the Conservative Party, and a third group who argued that the Liberal Party was more sensitive than the Tories to First Nations demands for increased responsibility and autonomy.

How the West Was Won: Competition, Mobilization, and Women’s Enfranchisement in the United States

A long-standing puzzle in American political development is why western states extended voting rights to women before states in the East. Building on theories of democratization and women’s suffrage, I argue that politicians have incentives to seek out new voters in competitive political environments. A strong suffrage movement reinforces these incentives by providing information and infrastructure that parties can capitalize on in future elections. If politicians believe they can mobilize the latent female vote, then large movements and competitive political environments should produce franchise expansion. Using data on legislative decisions pertaining to suffrage in 45 states from 1893 to 1920, I show that political competition and movement strength are robust predictors of support for women’s suffrage in state legislatures. In the West, fluid partisan politics and relatively strong mobilization produced early reform. Since states determine who voted for national, state, and local offices, these decisions mattered for advancing political equality.

The Political Economy of Financial Systems: Evidence from Suffrage Reforms in the Last Two Centuries

Initially, voting rights were limited to wealthy elites providing political support for stock markets. The franchise expansion induces the median voter to provide political support for banking development as this new electorate has lower financial holdings and benefits less from the uncertainty and financial returns from stock markets. Our panel data evidence covering 1830-1999 shows that tighter restrictions on the voting franchise induce a greater stock market development, whereas a broader voting franchise is more conducive towards the banking sector, consistent with Perotti and von Thadden (2006). Our results are robust to controlling for other political determinants and endogeneity.

Hollowing Out the State: Franchise Expansion and Fiscal Capacity in Colonial India

Studies of fiscal capacity have emphasized slow-moving structural and historical factors to explain variations in tax institutions. The cooperation of political elites, however, is crucial for building and maintaining robust tax institutions. This paper argues that political elites may weaken fiscal capacity in anticipation of new groups coming to power. One such instance occurred in the Colonial Indian provinces, where incumbent political elites hollowed out tax capacity in anticipation of franchise expansion. Why did this happen? In societies with hierarchical social orders, such as the caste system in India, incumbent elites are able to use the threat of de-segregation and a social-status cleavage to form anti-tax coalitions. Using a historical dataset from 1914-1925 and novel micro-level measures of land tax collection, tax avoidance, and the size of the bureaucracy, the paper demonstrates that fiscal capacity declined after franchise expansion in the districts with higher levels of inter-caste status inequality.

Strategic agility explanations for managing franchising expansion during economic cycles

PurposeThis paper aims to demonstrate how franchising firms can manage system expansion by weathering the economic effects of a location (i.e. country-level economic cycles) by shifting their resources.Design/methodology/approachThe authors use a comprehensive database of 151 US hybrid franchising organizations, including observations for the years between 2001 and 2008. Data analysis is conducted with count model panel data with a Poisson distribution.FindingsThe model reveals a curvilinear U-shaped relationship between location (i.e. economic cycles) and franchising expansion.Originality/valueThis study contributes to competitiveness literature by showing how franchising firms respond to changing local conditions.

A comparative study of two Thai franchises in international expansion

This paper is an exploratory study examining the determinants influencing the ability of Thai franchisors to successfully expand internationally; its findings are intended to contribute to franchising theory and practice. Cross-case analysis was designed, using two internationalised franchisors that are recipients of the Thailand Franchise Quality Award (TFQA). Franchisors from the education and service sectors were purposely selected as the sample cases. In-depth interviews with the executives involved in international markets and document analysis were conducted to triangulate the findings. Findings indicate that system quality, brand name, network communication, local environments, the franchisor's activities (leadership qualities and the ability to handle stressful situations), and the franchisee selection procedure are all positively associated with success in domestic and international business expansion. Differences in price bonding, type of franchising agreement, geographic distance and cultural difference as concerns with the franchising expansion decision are discussed in this study. A platform for further study is also provided.

A multilevel puzzle: Migrants’ voting rights in national and local elections

AbstractHow does international migration impact the composition of the demos? Constitutional doctrines and democratic theories suggest contrasting responses: an insular one excludes both non‐citizen immigrants and citizen‐emigrants; a deterritorialised one includes all citizens wherever they reside; a postnational one includes all residents and only these. This article argues that none of these predicted responses represents the dominant pattern of democratic adaptation, which is instead a level‐specific expansion of the national franchise to include non‐resident citizens and of the local franchise to include non‐citizen residents. This is demonstrated by analysing an original dataset on voting rights in 31 European and 22 American countries, and outlining a level‐sensitive normative theory of citizenship that provides support for this pattern as well as a critical benchmark for current franchise policies. The findings can be summarised in two inductive generalisations: (1) Voting rights today no longer depend on residence at the national level and on citizenship of the respective state at the local level; (2) Voting rights do, however, generally depend on citizenship of the respective state at the national level and on residence at the local level. In the article, these are called the patterns of franchise ‘expansion’ and ‘containment’. The former supports the idea of widespread level‐specific expansion of the franchise and refutes the insular view of the demos. The latter signals corresponding level‐specific restrictions, which defeats over‐generalised versions of deterritorialised or postnational conceptions of the demos. In order to test how robust this finding is, cases are analysed where the dominant patterns of expansion have been resisted and where unexpected expansion has occurred. With regard to the former, the article identifies constitutional and political obstacles to voting rights expansion in particular countries. With regard to the latter, the article shows that even where national voting rights have been extended to non‐citizen residents, containment remains strong through indirect links to citizenship.

International Expansion of United States Franchisors: A Status Report and Propositions for Future Research

Given the growth of franchising globally, now is an important time to consider the international expansion trends of franchisors. This study examines current trends in the international expansion plans of United States franchisors using a unique data set drawn from 438 announcements on the International Franchise Association's website made by 85 franchisors over nine years. The findings describe the scope, duration, markets, entry modes used, and expansion rationale. Contrary to past practices, United States franchisors are more focused on expanding into the emerging markets of Asia rather than the developed markets of the West. It appears that they are attracted by the growth in these markets. Finally, the results are used to summarize the key trends in international franchise expansion and to generate propositions for future research. Some limitations and implications for practice are discussed.

Corporate governance and the expansion of the democratic franchise: beyond cross-country regressions

ABSTRACTThis article documents the stark differences in the legal regulation of corporations in the United States compared to Britain and other Western European countries in the nineteenth century. The lack of alternative ways of obtaining ‘corporate’ advantages in common-law countries made the corporate form much more politically fraught than in civil-law countries. In the United States, general incorporation laws came after the attainment of universal white manhood suffrage and were part of a broader egalitarian movement to ensure that elites did not have advantages over everyone else. As a result, they were highly prescriptive, limiting corporations’ size and duration and also mandating specific governance rules. In Great Britain, by contrast, general incorporation laws were passed in a context where only a small fraction of the population could vote. Because the interests at stake in the legislation were those of the business and financial elite, British company law (like the less politically controversial statutes enacted on the European continent) left the rules governing corporations largely to the contracting parties themselves. This paper also argues that understanding the patterns in general incorporation laws requires scholars to move beyond cross-country regressions to study the political economic processes that unfolded in these different settings.

International Franchise Expansion: The Role of Institutions and Transaction Costs

Abstract In this study, we examine how a country's institutional environment affects the international expansion activities of U.S. franchise companies. We draw on institutional and transaction cost theories to develop a model and a set of hypotheses regarding the effect of political, regulatory and infrastructural institutions, as well as economic instability, on international franchise expansion. Using a sample of U.S. franchise firms and data from a combination of secondary sources, we test these hypotheses by estimating a panel regression model. Our results demonstrate for the first time that, in addition to favorable political governance, a country's business climate, including entry regulations, taxes, and communications infrastructure, is an important predictor of foreign franchise firms' expansion into that country. Implications for practice and future research also are discussed.