The Main Franchisability Factors for Businesses in Brazil

Authors

  • Lucas Pezzo Lobo FIA Business School, Av. Doutora Ruth Cardoso, 7221, São Paulo 05425-902, Brazil.
  • Rodolfo Leandro de Faria Olivo FIA Business School, Av. Doutora Ruth Cardoso, 7221, São Paulo 05425-902, Brazil.
  • Mauricio Jucá de Queiroz FIA Business School, Av. Doutora Ruth Cardoso, 7221, São Paulo 05425-902, Brazil.

Keywords:

Franchising, Franchisability, Expansion by franchising, Franchises

Abstract

Franchising is a system of business expansion that is currently practiced in numerous markets. This system, based on the exchange of experiences and strengths between participants to generate competitive advantage, works with trends and styles in tune with the context of a highly globalized, dynamic and interdependent society. The franchising expansion model holds certain specificities and requirements to ensure the success of its operations, meaning it is not a viable option for every company – especially small-to-medium businesses. Therefore, a research was done to determine the determinants of franchisability of Brazilian small-to-medium companies and their respective relevances, in order to determine which factors have a real relevance in determining the franchisability of a company, and within these factors, which ones are more relevant. Documentary research was done to raise the factors in the literature, as well as multiple case studies to determine the relative relevance between factors and a triangulation with company websites and experts to validate the results. It was concluded that the two factors that have more relevance in the franchise of a company are the business model and the market and the product. On a second level, presenting lesser relevance to the previously mentioned factors, are the branding power, profitability and availability of support for the franchisee. Finally, it was determined that the factors with the least relevance are replicability and standardization, competitive advantages, relationship bilaterality, contractual status and compliance, and corporate culture. Based on the results of this research, entrepreneurs can use the suggestions as an aid in their decision to opt for franchising as a method of business expansion, in addition to analyzing the feasibility of a franchise operation.

References

. A. B. de Franquias. Desempenho do Franchising Brasileiro. São Paulo, 2021.

. I. F. Organization. Franchise Business Economic Outlook for 2022. [on-line]. Available: https://www.franchise.org/sites/default/files/2022-02/2022%20Franchising%20Economic%20Outlook.pdf. [March 21, 2022]

. T. Economia. “Veja 10 redes que falharam com franquias e evite seus erros”. Internet: http://economia.terra.com.br/veja-10-redes-que-falharam-com-franquias-e-evite-seus-erros,8d3877561f66b310VgnCLD200000bbcceb0aRCRD.html. [October 4, 2016]

. P.L.R. Melo, T. Andreassi. “Franquias Brasileiras: estatégia, empreendedorismo, inovação e internacionalização”. São Paulo: Cengange Learning, 2012.

M. Cherto et al. “Franchising: uma estratégia para expansão de negócios”. São Paulo: Premier Máxima, 2006.

A. Ribeiro et al. “Gestão Estratégica de Franchising: Como construir redes de franquias de sucesso”. São Paulo: DVS Editora, 2013.

P. C. Mauro. “Guia do Franqueado: Leitura obrigatória para quem quer comprar uma franquia”. São Paulo: Nobel, 2013.

W. C. Lucato, M. Vieira Júnior. “As dificuldades de capitalização das pequenas e médias empresas brasileiras” in Produção, São Paulo, v. 16, n. 1, p. 24-33, April 2006.

V. P. G. Bretas, I. Alon. “Franchising research on emerging markets: bibliometric and content analyses” in Journal of Business Research, v. 133, p. 51-65, September 2020.

A. Rosado-Serrano, D. Dikova, J. Paul. “International franchising: a literature review and research agenda” in Journal of Business Research, v. 85, p. 238-257, April 2018.

J. J. Iddy, I. Alon. “Knowledge management in franchising: a research agenda” in Journal of Knowledge Management, v. 23 No. 4, p. 763-785, May 2019.

A. P. Minkler. “An empirical analysis of a firm’s decision to franchise”, in Economic Letters. North-Holland: v. 34, n. 34, p.77-82, February 1990

E. J. S. Bitti. “Fatores determinantes do crescimento de redes de franquia no Brasil”. PhD Thesis, Production Engineering, University of São Paulo, Brazil, 2012.

T. W. K. Leslie, L. S. McNeill. “Towards a conceptual model for franchise perceptual equity” in Brand Management. London: v. 1, n. 18, p.21-33, March 2010.

L. J. Christensen, H. Parsons, J. Fairbourne. “Building entrepreneurship in subsistence markets: microfranchising as an employment incubator” in Journal of Business Research. Chapel Hill: v. 63, n. 63, p. 595-601, January 2010.

I. Alon. “Franchising globally: innovation, learning and imitation”. New York: Palgrave Macmillan, 2010.

U. Flick. “Introdução à pesquisa qualitativa”. Porto Alegre: Artmed, 2009.

A. C. Gil. “Métodos e técnicas de pesquisa social”. São Paulo: Atlas, 2008.

I. Murray. “The franchising handbook: the complete guide to choosing a franchise”. London: Kogan Page Limited, 2006.

J. J. S. Fonseca. “Metodologia da pesquisa científica”. Fortaleza: UEC, 2002.

T. E. Gerhardt, D. T. Silveira. “Métodos de pesquisa”. Porto Alegre: Editora da UFRGS, 2009.

R. S. B. de Queiroz. “Modelo para avaliação da comunicação em franquias, baseado na criação de experiências para o consumidor no ponto-de-venda.” PhD Thesis, Communication Science, University of São Paulo, Brazil, 2015.

D. Santini, F. Garcia. “Marketing para franquias: as melhores práticas para franqueadores e franqueados”. São Paulo: Saraiva, 2010.

A. B. da Silva, C. K. Godoi, R. Bandeira-de-Mello. “Pesquisa qualitativa em estudos organizacionais: paradigmas, estratégias e métodos.” São Paulo: Saraiva, 2010.

S. Spinelli Junior, R. M. Rosenberg, S. Birley. “Franchising: pathway to wealth creation”. Upper Saddle River: Prentice Hall, 2004.

D. J. Sweeney, T. A. Williams, D. Anderson. “Estatística aplicada à administração e economia”. São Paulo: Cengage Learning, 2014.

R. K. Yin. “Estudo de caso: planejamento e métodos.” Porto Alegre: Bookman, 2010.

Downloads

Published

2022-05-28

Issue

Section

Articles