CRITICAL SUCCESS FACTORS IN THE
Date
2011-04-15
Authors
Hosany, Feroz
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Abstract
This research report evaluates the critical success factors in the relationship of
multi-national franchises as identified by authors in franchise systems.
Specifically, this research seeks to validate the critical success factors in the
relationship between multi-national Franchisors and Franchisees identified in the
literature review.
The research was conducted amongst Experts, Franchisors, and Franchisees
operating within Africa. The questionnaire-based survey asked the participants to
rate 16 statements, in order of importance, in order to verify if they would also
select the 6 factors that had been identified in the literature review. Subsequently
the data elicited was analysed by various statistical techniques including
descriptive statistics and inferential statistics.
The findings of the research indicate consensus of the three groups of
respondents on five factors: These are as follows:
· Partner selection is crucial to the success of a franchise relationship
· The deal must create mutual benefit and value
· Both parties must share common goals and a common vision
· There must be trust and transparency in all dealings between the two
parties
· Effective communication between the two parties is essential
A conceptual model is formulated that outlines the critical success factors in the
relationship between multi-national Franchisors and Franchisees. The study also
provides consultants in franchise systems a means to develop programs and
guidelines to enhance these relationships. The findings are valuable both for
existing franchise systems and new ones. Recommendations are also made for
further research in order to provide guidance to specific franchise sectors.
Description
MBA - WBS
Keywords
Franchising, Franchisors and franchising, Critical success factors