Title

Purposeful franchising: re-thinking of franchising rationale

Document Type

Journal Article

Publisher

Singapore Institute of Management

Faculty

Regional Professional Studies

School

Regional Professional Studies Deans Office

RAS ID

2723

Comments

This article was originally published as: Inma, C. (2005). Purposeful franchising: Re-thinking of the franchising rationale. Singapore Management Review, 27(1), 27. Original available here

Abstract

Despite the rapid adoption of the franchising concept, there is still a lack of understanding and a consensus on the theoretical determinant and creation of this business strategy. For the past four decades, the agency theory has been popularly used to explain the foundation of franchising. The paper concludes that there is a limitation in using the agency theory to explain the fundamental of franchising. The franchising phenomenon is not a simple array. The complete understanding of franchising practice may require an explanation involving more than one theory.