Chapter - 1 INTRODUCTION
This chapter deals with the introduction to franchising, importance of the study,
objectives of the study, methodology, hypotheses, period of the study and organization
of the study.
1.1 Concepts of Franchising
Franchising is the practice of using another firm's successful business model. The
word 'franchise’ is of Anglo-French derivation - from franc - meaning free, and is used
both as a noun and as a (transitive) verb. Franchiser is the owner of an established
business, wishing to expand the business through a franchise. Franchisee is any
entrepreneur looking to start a business; with a franchise, the franchisee can quickly get
into a model of an established business, while reducing the risk and increasing the
Return on Investment (ROI). For the franchiser, franchising is an alternative to building
'chain stores' for expanding the business, while avoiding the investments and liability of
a chain. The franchiser's success depends on the success of the franchisees.
Franchising systems can be broadly divided into two types. One type of
Franchising is a relationship between the supplier and the dealer in which the dealer
agrees to acquire some of the identity of the supplier in order to become the preferred
source of the supplier’s goods. The second type, “Business Format” franchising is an
ongoing relationship between the franchiser and franchisee that not only includes
product, service and trademark, but also the entire concept of business.
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Franchising has increasingly led aspiring entrepreneurs to realize their desires of
owning their own ventures. In India, franchising as a route of expansion has been
prolific across sectors as well as formats. Industry verticals like education, food and
beverages and clothing have been constantly leveraging their growth through various
product/service franchising concepts. On the steady path of growth, the game is
changing at a rapid pace. Investors are becoming much more cautious and to establish
long-term profitable partnerships, risk is shared both by the franchiser and the
franchisee.
1.2 Reasons for Getting into Franchising Business
Firms build brands over time spending lot of money and effort. As and when
they develop a sense that their brands have become strong and possess lot of unrealized
potential, they then tend to start discussing expansion. As pointed out earlier, when they
do not have the required resources and/or they do not want to risk their own finances,
they take to franchising route. This way, the growth of the brand and thus the revenue of
the franchiser can go to unimaginable levels and can achieve maximum coverage with
minimum risk and good revenue generation.
On the other side, an entrepreneur or firm, which does not have any new ideas,
patience or resources to build a brand of its own, chooses to enter into franchising
arrangement and intends to reap profits right form day-one. In this arrangement, the
franchiser and franchisee enter into a franchise agreement.
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Following are few reasons for popularity of franchising business among current
entrepreneurs:
1. There's less risk involved than there is, in starting a business from
scratch. According to a study published by IFA (International Franchise
Association), the chances of a franchise surviving for over two years are 94%, as
opposed to 43% for an independent business.
2. Franchisees receive individual training in all aspects of running the
business. Initial training programs typically last from one week to three months,
depending on the size and sophistication of the operation.
3. In a franchise arrangement, the image and reputation in the marketplace would
have already been established. For instance, in 2012, McDonald's Corp. spent
over USD 2 billion worldwide on advertising and promotional campaigns
(Corporation 2012) to increase their brand visibility.
4. Ongoing technical and managerial support is the essence of all business format
franchise systems. This kind of support differentiates this type of franchise from
product and trade name franchisees, such as automobile dealerships.
5. Although fast food remains synonymous with franchising, service-oriented
franchisees in health care, home decorating, travel agencies and copier services,
are dotting more of the nation's (U.S.A.) streets and shopping malls. In fact,
service-oriented businesses have been leading the growth in franchising for the
last four years. “Now more SMEs (Small and Medium Enterprises) are
recognizing that franchising is a viable option due to availability of funding from
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financial institutions and better awareness” as stated in WIF (Women in
franchising of franchise council of Australia)
1.3 History of Franchising in India
Historically, the 1980s were the formative years of the modern franchise boom;
and in the 1990s the industry was in adolescence maturing rapidly, but with plenty of
room to grow. It took a clear understanding of the relationship between the franchise and
the franchiser to achieve success by business format franchises during the past decade
worldwide. A strong, and management backing with solid financial resources is the
common reason for this stupendous growth and advancement in the franchise format by
all major companies of repute in India and overseas.
Franchising is in its early stages in India, and has become increasingly popular as
a means of doing business in the past few years. The international soft drink and hotel
franchisees arrived in India, as early as in the 1960s, but in 1977 the then government
expelled foreign brands from India but they started returning gradually from the mid
‘80s. In the ‘90s when the liberalization started and as the markets opened, foreign
franchisees started coming in but faced many hiccups along the way especially global
companies like KFC, Schweppes, etc. Since then, there has been progressive entry of
international franchisee and many have been successful with few exceptions.
The well-known companies relating to soft-drinks, ice-cream parlors and
restaurants include Pepsi, Coke, Baskin Robbins, Move n pick, Subway, McDonald’s,
TGIF, Taco Bell, Pizza Hut, Pizza, Domino’s Pizza, O’Brian’s Sandwich Bar have a
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stabilized franchise model. Rental franchises such as Mark & Spencer, Westside, Evita
Peroni, Pepe Jeans and Adams are also doing well. The Indian companies who ventured
into franchising business very early were courier companies like First Flight, Blue Dart
and DTCDC along with computer and software training franchises such as APTEC,
NIIT and STG etc. As the franchising model matured many other companies including
TATA, Reliance, Birla also started to get into franchising business post year 2005 and
they are aggressively pursuing that route and have been successful.
1.4 Franchising Relationships
An American franchising consultant Nicholas A. Bibby (Bibby, 2011) brought
out certain valuable observations and suggestions about franchising relationships. This
franchise article and the following perspectives on franchise and business relationships
emanate from Nicholas Bibby‘s dual experience of counseling individuals in both
business and personal issues. Bibby states that
1. Quality relationships (franchised or otherwise) are built on defined roles, consistent
behavior, trust, honesty, openness and support; but most of all, natural fit.
2. A realistic take on most franchise relationships and mutual respect is required
between the franchisers and the franchisees.
The franchiser-franchisee relationship always begins with the parties coming
from two totally different levels of experience, knowledge; insight and power therefore
are bound to have different viewpoints.
The following is what the IFA (International franchise association) says about
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franchiser-franchisee relationship. “There are certain practices a franchiser can do
to enhance and develop the franchiser/franchisee relationship”.
1. Sharing the vision: The franchiser should share the personal vision of opportunity
and success which the franchise system offers. A franchisee being a family member
of the franchise system, deserve to be a part of the vision, which will become a
lifelong project for them. This vision should include a high desire to receive the
rewards of one’s work. This shared vision will become the focal point of the
relationship as they build to mutually develop in a harmonious and successful
franchise experience.
2. Active communication: A regular line of communication from the franchiser acts as
a guiding light for the franchisee. Franchiser often seeks to develop new products or
services, which might enhance the growth and prosperity of the business. A clear
communication system facilitates a bi-lateral flow of information with regards to
new products or service lines thereby improving the franchiser-franchisee
relationship. This communication could be in the form of mails, letters, newsletters,
conferences or even informal meetings.
3. “Total” training program: Training is the fundamental ingredient of a strong
relationship. Almost all franchisees require initial training to start the business. In
addition, refresher courses, as well as new training programs should be provided to
help improve the abilities of the franchisees and the franchisee’s staff. From time to
time Franchisees are desirous of obtaining self-improvement programs for
themselves as well as for their staff. The franchiser should provide training and
improvement programs which actually go a long way in enhancing the abilities and
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capabilities of a franchisee.
4. Developing and sharing an aggressive growth plan: Both the franchisee and the
franchiser desire the business to grow, albeit some franchisees are ambitious and
would like to become multi-unit or master franchisees after opening their first unit.
They therefore would like to open a second or third unit in the same city or state.
Franchiser should always offer a plan for growth so that they can induce the
franchise to be an enthusiastic and vibrant organization. It is known that growth is
an elixir to the desires and appetites of teams wishing to become better.
Franchiser-franchisee relationship and conflicts between them are two sides of
the same coin of a franchising system. Relationships are not complete, nor can they be
well maintained unless the reasons for conflict between franchisers and franchisees are
traced. In other words, to run a good franchising system for a long time, maintaining
good relations and avoiding or minimizing conflicts between both the parties are
essential. Hence, it is recommended to identify and address the common causes of
conflicts that arise between them.
1.5 Pitfalls of Franchising System
Everything is fine if both the parties do not become over-ambitious to make
abnormal profits particularly at the expense of the other party. Often, the franchiser may
have a complaint that the franchisee is not taking as much interest as he should to
promote the brand, or does not invest as much as was expected originally, or the quality
standards of the brand or the services are not being maintained. This may eventually
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result in the brand losing its sheen, more because of the doing or not doing of what was
expected of the franchisee than anything else.
Even the franchisee may have his woes and complaints against the franchiser. As
the franchise agreement is contractual in nature, the franchisee is not sure how long the
contract would last and when the franchiser would call it off. If the franchisee puts his
heart and soul in making the brand of the retail outlet famous in the area, and the
franchiser terminates the contract, the franchisee may have nothing left at the end of the
day.
1.6 Causes of Conflict in Franchise Relationship
Conflict can occur in any relationship, and franchising is no different.
Franchisees seek to grow profitable businesses in their relationship with the franchiser,
and franchisers seek to maximise their market coverage in their relationship with
franchisees. Both parties are drawn to the relationship for different reasons. Separate
studies of the causes of conflict between franchisees and franchisers found that there are
several acknowledged causes of conflict in franchise relationships, but that the relative
importance of those causes differs as per the consideration of one’s own perspective.
1.6.1 Lack of Support from Franchiser
From the franchisee perspective, lack of support from the franchiser had been
considered as the main cause of problems in the franchise relationship, while franchisers
ranked this as the second smallest contributing factor to conflict.
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Of all the causes of franchise conflict acknowledged by both franchisees and
franchisers, the issue of support has been the one where both parties are poles apart.
Franchisees feel that the support they receive hasn't met their expectations, or is
too sparse to be particularly useful. In extreme cases, there has been the sense of
abandonment – that after the franchisee has invested their money with the franchiser;
they were largely left to fend for themselves.
On the other hand, franchisers are relatively comfortable with the level of
support they provide and don't consider this to be a primary cause of conflict in the
relationship. The clash of perspectives often boils down to a mismatch of expectations
by both parties prior to and at the commencement of the franchise relationship.
In their recruitment process, franchisers may make statements about the level of
support provided which create a much higher expectation in the mind of the franchisee
than the franchiser can actually deliver. Alternatively, the franchisee themselves may
develop an unrealistic expectation of the frequency and nature of the support available
despite anything being said by the franchiser.
1.6.2 Compliance with System
Franchisees feel that franchisers are too rigid in their enforcement of compliance,
and would prefer a profitable business than a highly-compliant business. Franchisers on
the other hand feel that compliance is necessary to maintain the integrity of the brand,
and in turn, should lead to higher levels of franchisee performance.
By "failing to follow the system" franchisers feel that franchisees are
undermining their own investment in the franchise, as well as risking the brand promise 9
across the network. However, franchisees feel that the system should be improved, or is
downright deficient, and seek to develop their own standards and procedures that they
believe work better than those provided by the franchiser.
1.6.3 Fees
The payment of fees, also known as royalties, is another significant factor
leading to disputes according to franchisees. Again, the perspectives here differ
significantly. Franchisees often feel that they pay fees in return for certain services
provided by the franchiser; if support is below expectation, then franchisees may
become unhappy with the fees and cease paying them, or argue for a reduction in fees.
They might also cease paying fees if their business is financially distressed. Franchisers
treat the underpayment or non-payment of franchise fees as a major breach of the
franchise agreement, irrespective of the franchisee's satisfaction.
1.6.4 Communication Problems
The difference in relative importance associated with communication as a cause
of franchise disputes, is similar to the differing perspectives on fees. On one hand,
franchisees feel that they are not well-enough informed about the franchise, its
operational requirements, and the direction of the brand as a whole, whereas franchisers
may argue that franchisees fail to keep the franchiser informed by not submitting reports
or providing other information. Again, this common cause for conflict appears to come
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down to a mismatch of expectations, and the capacity or willingness of either party to
meet the expectations of the other.
1.6.5 Misrepresentation of Issues
Some of the issues which are more important to franchisees, such as support,
compliance and fees, have the potential to arise from misrepresentations when joining
the franchise (or misunderstandings of what were represented at the time). Franchiser
concerns about misrepresentations are typically centred around earnings claims that may
subsequently prove to be inaccurate, whereas franchisees may be focussed on the
necessary inputs to achieve the earnings, rather than the earning’s target itself.
1.6.6 Marketing Issues
Marketing is viewed by franchisees as a key benefit of joining a franchise.
Franchisees usually pay a contribution into a marketing fund, which then pays for some
or all of the advertising and promotion to benefit the network. Franchisees may become
dissatisfied if the marketing campaigns that have been funded by their contributions
have not produced adequate results, or if they feel that their contributions are being
wasted or spent unwisely. Franchisers may also be sensitive to these perceptions of the
effectiveness of group marketing. While the perspectives on the issue of marketing are
not always different, the importance of it to drive business to a franchisee's outlet is not
to be underestimated.
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1.6.7 Profitability
One effect of the franchiser’s desire to maximize sales and the franchisee’s
desire to maximize profit is a conflict over whether to adopt high-volume, low-margin
business strategies. In general, maximizing sales tends to occur at lower prices and at
higher quantities than maximizing profits. Thus, franchisees tend to prefer strategies that
involve selling a lower quantity at a higher price than their franchisers would like. This
conflict manifests itself in disagreements between franchisers and franchisees over the
product mix for the business.
1.6.8 Other Issues
The remaining issues which are triggers for disputes from a franchisee's
perspective include agreement and territory issues, deficit or excessive control by the
franchiser, and stock issues. For territories, franchisees may feel that the franchiser
restricts their growth by keeping them in just one area, whereas franchisers expect
franchisee’s to maximise their penetration of a given area rather than providing goods or
services outside it.
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1.7 Schematic Model for Franchise Relationship
Figure 1-1 Schematic Model for Franchise Relationship
The schematic model can be divided into two parts horizontally. The upper part
describes the role relating to the franchiser and the lower part to the franchisee. On the
franchiser’s side, once the decision to take the franchise route to expand the business is
made, the prospective franchisees are short-listed. This stage may be taken as lead
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generation stage. After that, the franchiser conducts his part of investigation to see the
desirability of entering into franchising contract with the franchisee. This stage is
followed by negotiation which may eventually result in entering into an agreement. This
is followed by fulfilling of his part of the contractual obligation. This stage consists of
two parts—facilitation/service and management and control of the franchise. The usual
functions that are included in facilitation/service are supply of gondolas and other
gadgets required by the franchisee to run his business, helping the franchisee in layout
design of the retail outlet, if the franchise involves one, initial inspection, training the
franchisee and his employees in handling business or rendering a service as the case may
be. It is important to refresh the franchisee whenever any change in the product or
service is initiated, timely replacement of the damaged goods and providing legal and
financial help to the franchisee in times of need. The second part of the franchiser’s role
is management and control of the franchising system. Some of the important tasks of
this are to obtain periodic reports and reviewing them constantly and giving necessary
feedback. Collection of royalties or part of the profits and the costs of the goods and
services from the franchisee of course is a major part of the management. Periodic and
surprise visits to the franchisee’s facilities is necessary to see the honesty and diligence
with which the franchisee is fulfilling the terms and conditions of the franchise
agreement. The modifications initiated by the franchiser and the franchisee have to be
clearly defined; the franchisee and his employees have to be geared to meet the
challenges posed by those modifications. As conflicts are an inevitable part of any
franchising system, they have to be settled without any detriment or damage to the
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system. It may be at times necessary to review and revise the terms and conditions of
the agreement.
This has to be undertaken after assessing the pros and cons of the new conditions
added or changing of the existing conditions. It is possible that the relations between the
franchiser and the franchisee may be smooth and encouraging. In that case it is in the
best interest of the franchiser and the franchisee that the contract is renewed. However,
such a situation is unlikely in the Indian context.
The franchisee’s side of the story is somewhat similar. An individual or a firm
intending to enter into franchise contract scouts around for the best business possible. In
doing so, a little bit of investigation is exercised by the franchisee before approaching
the franchiser. Negotiations take place after approaching the franchiser. But in the
Indian context, negotiations are rare. A ‘ready-to-sign’ agreement is kept ready by the
franchiser and often the franchisee ends up signing on the dotted line. Thus a franchise
contract comes into existence. The franchisee’s obligations to the franchising system
start from this point onwards. The franchisee has to set the unit with or without the help
of the franchiser as agreed upon in the contract. He takes deliveries from the franchiser
as per the pre-specified schedules. He follows the guidelines given by the franchiser in
taking deliveries and running the franchised unit. He makes prompt payments without
default. Sending periodic reports, sharing market information with the franchiser,
participating in the co-operative advertising are parts of the obligations of a franchisee.
He may raise queries and seek clarification from the franchisee and settle the disputes
orally by discussions or arbitration as stipulated in the contract. If the relationship is in
good shape, the franchise contract may be renewed for a further period, or it may get
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terminated with mutual consent. The franchisee has to fulfill all the obligations at the
time of termination of contract such as settling the accounts, returning the unsold stock,
complete the service contracts entered into with the customers and so on.
1.8 The Problem
Our study is based on the three dimensions, namely, franchise relationships
(section 1.41.4), conflicts and stages of franchise (section 2.3) to focus on
implementation part of a franchise as suggested in the schematic model in section 1.7.
The crucial aspect of this study lies in strategizing the start and termination of the
franchising system, including implementation issues. The literature on franchising
(described in the next Chapter) suggests that past research has been too closely tied to
theories of agency and power. Though helpful, those theories are quite narrow in
approach. They have often ignored the franchisee’s perspective; knowledge that can be
gained and shared from the franchisee’s perspective and opens important research
questions to be answered. The most disturbing facet of existing franchising research is
that it has almost totally ignored implementation issues and strategies associated with
them.
This work concentrates specifically on the implementation issues of franchising
from both the franchiser and franchisee’s perspective. The understanding of these issues
would help us in offering some valuable suggestions to both the parties, helping to
remove the irritants that arise in the day-to-day functioning of the franchising system. It
also explores the strategies involved which would extend the longevity of the
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franchising system at the time of franchise contract itself. Even though it would be
abstract in nature, it would optimize the operation of a franchising system to the desired
levels of satisfaction.
1.9 The Importance of the Study
In recent past, the penetration of Franchiser-Franchisee business model in India
is happening with full thrust. There is a need in today’s competitive franchising
environment to identify strategies that promote franchising success and there has been
very little research conducted specifically in Indian environment. Our study evaluates
the relationship model specific to state of Andhra Pradesh. Our work outlines the
correlation between these relationship parameters using statistical tools and techniques
and prescribes some insights based on the outcome.
The result would also guide the existing and budding franchisers and franchisees
to make informative decision. Additionally it may prevent both Franchisers and
Franchisees from getting into known pitfalls.
1.10 The Tasks under the Study
1. The first task to be fulfilled in this study is to understand how a typical
franchising system works in the Indian context and what problems are faced in
long term and short term in running a franchise business.
2. Building the model of a typical franchising system, which reflects the Indian
conditions, is a challenging task. Though, there are broadly two types of
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franchises i.e. agency and business format, there seems to umpteen varieties of
franchises practiced in the Indian context. Culling out a single model of a
franchising system so that suitable improvements can be suggested is a difficult
task.
3. The next task is developing a suitable questionnaire to gather information on the
mechanics of a franchising system, and the irritants affecting the functioning of
a franchising system. After designing the questionnaire, managing a good
response rate is another challenge.
4. The next task is determining whether we would have to review the personality
of the franchiser and franchisee organizations or the personalities of the heads of
those organizations. Four factors — honesty, prestige, innovation and power, as
suggested by the Warwick University study was used in this study. To test the
matching personality canonical correlation was used.
5. Dependable scales are available to measure both the corporate values and
individual values. This task too involves the dilemma of determining as to
whose values have to be measured—the organizational or the organizational
head’s? Again, the nature of the samples selected will resolve this issue too. To
examine the matching of values, we use coefficient of correlation.
6. Measuring the ethics is another task. Established scales for the validity and
reliability available. The samples available will finalize whether we have to
measure the corporate ethics and the ethics of the business heads. Like in the
case of values, we use coefficient of correlation to examine the match or
otherwise of ethics of both the parties.
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1.11 The Objectives of the Study
1. The main objective of the study is to examine the franchising strategies of select
products and services in Andhra Pradesh. The franchising strategies under
consideration are based on a set of parameters ranging from Relationships,
Conflicts, Business values etc.
2. To study the existing strategies of both franchisees and franchisers,
3. To enumerate the right fit parameters between franchisees and franchisers.
1.12 Research Methodology
Research comprises of defining and redefining the problems, formulating
hypotheses, and suggesting solutions, and collecting, organizing and evaluating data,
making decisions and reaching conclusions. The present study is basically descriptive in
nature which covers Research Design, Data Collection Tools and Measurement,
Sampling Plan and Tools for Data Analysis.
1.12.1 Research Design
The study basically relies on primary data. The primary data was collected by
administering questionnaires and also through formal and informal discussions with the
concerned members of the franchisee and franchiser companies. The data was collected
during 2012-2013.
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Secondary data is for preceding five years from the year 2012. It was collected
from the following sources:
1. Journals: Journal of Small Business Management, Journal of Marketing,
Management Science, Journal of Management, Journal of Retailing, Journal
of Business Venturing, International Small Business Journal, Strategic
Management Journal, Management Science, Organization Science, etc.
2. Magazines: The Franchising World, Franchise Times, Franchise Plus, Indian
Franchise Association newsletter, Franchiseek, Forbes India, Franchise India,
etc.
3. Books: Franchising (Marya, 2007), Franchising: An International Perspective
(Hoy & Stanworth, 2002), Franchising: Pathway to Wealth Creation
(Spinelli, Jr., et al., 2003).
4. Websites:http://www.franchiseindia.org/pdf/IFA-white-paper.pdf,
http://www.aboutmcdonalds.com/mcd/investors.html
1.13 Data Collection Tools & Measurement
Data collection tools are the key to measurement scales through which a
thorough analysis would be carried out & interpretation arrived which were used for
drawing inferences for the study. Questionnaire was the tool used for data collection and
some of the parameters collected are as follows:
• Business personality was measured using 18 items on a five point Likert scale.
• Business ethics was measured using 9 items on a five point Likert scale
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• Corporate culture was measured using 7 items on a five point Likert scale.
1.13.1 Sampling Plan
The sample Franchisees and Franchisers selected for the study is confined to the
geographical region of Hyderabad, Vishakhapatnam, Tirupati and Vijayawada cities of
Andhra Pradesh .Further, the respondents were managers who were holding responsible
position and were managing all the affairs of their respective franchise or franchiser
business.
Sample Universe encompasses select franchisee’s and franchiser’s belonging to
the categories like beauty, apparels, ice cream parlor, fast food chain, gifting and
greetings, jewelers, mobiles, kitchen products, education, watches and logistics of
Hyderabad, Vishakhapatnam, Tirupati and Vijayawada cities.
Sample Size determination is a scientific process of arriving at an appropriate
size of sample which is capable of representing the sample universe and also the size
must be capable of transforming the study to a meaningful exercise. A sample of 590
Franchisees and 107 Franchisers were selected and the distribution is as follows:
Location
Hyderabad Vishakhapatnam Vijayawada Tripathi Total
Franchisee 300 150 90 50 590
Franchiser 89 10 5 3 107
Category
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Sampling Technique Purposive Sampling technique was used to collect the data for
research. Purposive sampling represents a group of different non-probability sampling.
This relies on the judgment of the researcher, when it comes to selecting the units (e.g.,
people, cases/organizations, events, pieces of data) that are to be studied. The Franchiser
and franchisee were selected based on number of Franchises in the cities where the study
was carried out.
Sample Unit defines the single unit of the sample. Respondents held a
responsible position and maintained every day affairs belonging to either franchisee or
franchiser business.
1.13.2 Tools for Data Analysis
Keeping in view the nature of data, the following statistical tools were applied
for data analysis:
• Cross Tabulations Technique
• Descriptive Statistics
• T – test
• Factor analysis
• Chi-square
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1.14 Hypotheses
H01 There is no significant difference in the existing strategies of different
Franchisees and Franchisers
H02 There is no significant difference between the Business Values as perceived by
franchisees and franchiser
H03 There is no significant difference in problems faced by Franchisees and
Franchisers.
H04 There is no significant difference between the Business Personality as perceived
by franchisees and franchiser
H05 There is no significant difference between the Business Ethics as perceived by
franchisees and franchisers
1.15 Period of the Study
The study for the primary data is during the year 2012 –2013 and for secondary
data is the preceding five years from year 2012.
1.16 Limitations of the Study
The Data collection was done in only four major cities in Andhra Pradesh
(Hyderabad, Vishakhapatnam, Tirupati, and Vijayawada).
1. The study is conducted in the four regions of Andhra Pradesh, of the select
companies. Hence, the findings of study cannot be generalized.
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2. The respondents may have failed to articulate the opinions and thoughts.
Therefore, the inarticulation error may creep into the study.
1.17 Organization of the Study
The study is divided into five chapters which are as follows:
Chapter 1, Introduction: It deals with the introduction to the Franchising
concept and Franchising framework covering causes of conflicts in Franchising and
Relationship model. It also deals with Research Methodology, Hypotheses, Period of the
study, Limitation of the study and Organization of the study.
Chapter 2, Review of Literature: It focuses on the literature survey and
methodology. The research work done by various researchers in the area of Franchising
is studied and their observations are highlighted. Based on that, the research gap is
established and the problem for this study is proposed.
Chapter 3, Profiles of companies: This chapter gives a brief profile of
companies selected for research study.
Chapter 4, Data Analysis and Discussion: This is the core chapter of the
research study. It contains the analyses of the collected samples of the study to draw
meaningful framework.
Chapter 5, Findings, Conclusions and Suggestions: The chapter contains the
summary of findings, conclusions of the study, suggestions and directions for future
research.
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