Franchising in the Modern Economy-towards a Theoretical Understanding

Abstract

James Curran is Reader in Industrial Sociology at Kingston Polytechnic, Kingston upon Thames, England, and John Stanworth is Professor and Director of the Srral Business Unit of the Polytechnic of Central London, England. They have been researching the franchised small enterprise since 1975 with the aid of funding from the Social Science Research Council in Britain. Despite the growing importarce of franchising in the modern economy, there is relatively little systematic theorising on the franchise business form. The paper explores the emergence and roie of franchised economic activities at three levels: the social, organisational and motivational. Previous theory and research relevant to eacll level is critically assessed and those elements surviving the examination are brought together with recent thinking and findings to provide the basis of a general theory of franchisirg The latter is expressed in twelve propositions each linked to one or other of the. above levels and suggestions are made for the further refinement of the theory.