The franchising business model: an entrepreneurial growth alternative

The franchising business model is widely and increasingly used by entrepreneurs seeking growth through geographic expansion. Thus, continued research efforts are needed to help entrepreneurs make wise choices as to whether the franchising business model is appropriate for them. To help promote such research, we reviewed the literature on reasons for franchising and outcomes of franchising. Based on that review, we drew conclusions as to future research directions likely to be fruitful. Specifically, we recommend that researchers (a) continue adding theoretical diversity to franchising research, (b) build large-scale, longitudinal databases, (c) test or control for implicit and explicit assumptions, (d) pay more attention to micro-level considerations within franchise networks, and (e) compare franchising with alternative business models suitable for geographic expansion.