PARTNER SELECTION PROCESS IN FRANCHISING

Franchising has developed into a major expansion strategy for different types of businesses, covering many sectors, mostly services. A franchising network builds on strong partners and a structured headquarters planning. The major problem discussion in this paper is finding the right business partners. This task has been a challenge for many businesses in the past and present, and especially for companies in the franchisor sector. Adequate selection allows for smooth and mutually benefitting relations, which usually turn into profitable and lasting alliances. Contrary to the right personnel decision, wrong decisions often arise from less strategic processes, and quick and unwisely taken decisions by the franchisor, due to lack of understanding of the problems to be solved or a lack of standardization in place. The aim of this research is to support pre-decision-making and to provide a summary of researched ideas on better future outcomes, when selecting a prospect. This analysis plays an important role in the quest for improving selection processes, company's self-assessments, and amendments for existing selection processes. The method used in this paper is content analysis by comparing a collection of articles, describing international franchise processes. Different industries and distinct companies reveal different criteria and strategies. The time frame of nine studies compared in this article starts in the late 1980s and ends in 2011 and covers the North American and European continent. As result, the author concludes from the analysis that depending on the businesses studied, not only country differences but also a company's strategy, and business sectors play a vital role.