Internally recruited franchisees’ franchise buyer decision process
University of Adelaide
Place of Publication
School of Business and Law
A shortage of suitable franchisees has long plagued the franchise industry. Gaining insights into the franchise buyer decision process is important for franchisors to better target their recruiting practices. The five-stage Consumer Decision Process Model provided the theoretical framework for exploration of the franchise buyer decision processes of 12 Australian McDonald’s franchisees. Qualitative, semistructured interviews were used to gain rich insights into the processes undertaken in acquiring their first franchises. A new category of internally recruited franchisees, being former McDonald’s employees, was identified. Different franchise buyer decision processes were employed by the six franchisees who were recruited internally compared to those who were recruited externally. The internal recruits relied on internal search, explored few alternatives and perceived little risk. Conversely, the external recruits used extensive external search, evaluated numerous alternatives and perceived higher risk.