Factors affecting the sustainability of a franchise system

College

Ramon V. Del Rosario College of Business

Department/Unit

Accountancy

Document Type

Article

Source Title

Sulô: International Refereed Journal of Multidisciplinary Sciences

Volume

7

Issue

1

First Page

23

Last Page

28

Publication Date

6-2019

Abstract

This study investigated the sustainability of a current franchise system in the Philippines. Variables related to predicting success/performance in the literature (system quality, brand name, age of the franchise chain, franchise outlets ratio, upfront franchise fee, and royalty) were chosen as crucial elements that enhance the sustainability of the franchise system. With limited local literature, a qualitative research study was used through interviews using case research design covering the viewpoints/perspectives of the following parties: a selected franchising company, a franchisee of the selected company, and an expert. The study found that the sample entity has been implementing practices relevant to sustainability. None of the factors presented showed an impact on the other two variables on sustainability: social and environmental. For the franchise system to be sustainable, the franchisor and franchisee could review the franchise agreements and amend it if necessary, innovate and do continuous process improvements. The researcher recommends a separate franchise reporting requirement for entities engaged in franchising activities.

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Disciplines

Business

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