Franchising operational units in Australia

Article


Frazer, Lorelle and Stokes, Donald J.. 1997. "Franchising operational units in Australia." Franchising Research . 2 (1), pp. 32-42.
Article Title

Franchising operational units in Australia

ERA Journal ID19782
Article CategoryArticle
AuthorsFrazer, Lorelle (Author) and Stokes, Donald J. (Author)
Journal TitleFranchising Research
Journal of Consumer Marketing
Journal Citation2 (1), pp. 32-42
Number of Pages11
Year1997
Place of PublicationBradford, W Yorks. United Kingdom
ISSN0736-3761
2052-1200
Abstract

Analyses the incentives for franchising operational units by Australian franchisors. Draws from explanations used in the US empirical studies of the phenomena and identifies differences in the domestic economics and the extent of regulation of franchising in Australia and the US to suggest particular incentives are more likely to apply in the Australian setting. Given the greater ease of entry into franchising in Australia compared with the US, as a consequence of a smaller domestic economy and less regulation of franchising in Australia, Australia provides a setting which limits the impact of the capital constraint explanation of franchising. Using data obtained through a survey of business-format franchisors, finds that in Australia, contracting cost considerations associated with a greater level of repeat customers for operational units, contributes along with the lower start-up investment requirements for franchisees to the decision to franchise operations. Taken together with US findings, the study has implications for expanding franchising operations in Australia and similar economies, business expansion internationally and the impact of regulating franchising activities.

KeywordsAustralia; regulation; customer service
ANZSRC Field of Research 2020350202. Finance
350716. Small business organisation and management
350704. Entrepreneurship
Public Notes

File reproduced in accordance with the copyright policy of the publisher/author.

Byline AffiliationsDepartment of Government, Economics and Logistics
School of Accounting, Economics and Finance
Institution of OriginUniversity of Southern Queensland
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