Franchising operational units in Australia

Frazer, Lorelle and Stokes, Donald J. (1997) Franchising operational units in Australia. Franchising Research , 2 (1). pp. 32-42. ISSN 1359-852X


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.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Published version deposited in accordance with the copyright policy of the publisher.
Faculty / Department / School: Historic - Faculty of Business - Department of Economics and Resource Management
Date Deposited: 30 Nov 2007 11:47
Last Modified: 30 Sep 2013 01:10
Uncontrolled Keywords: Australia; regulation; customer service
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150201 Finance
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150314 Small Business Management
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150304 Entrepreneurship
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9104 Management and Productivity > 910402 Management

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