Research

Are Some Franchisees More Entrepreneurial than Others? A Conceptual Perspective on Multi-Unit Franchisees

This article examines the recent emergence of multi-unit franchising from the franchisee perspective. It provides a conceptual comparison of two prevalent domestic types of multi-unit franchising: area development and sequential multi-unit franchising. The suggestions provided in this paper focus on the philosophical distinction of these two categories of aspiring franchise owners, suggesting that a prospective franchisee's decision for a particular type of franchise can be likened to a consumer's purchase decision. It is argued that sequential multi-unit operators have more of an entrepreneurial motivation than area developers, who are more like "investors," and that this underlying difference in philosophy might influence the decision process. It is suggested that a clear need exists for marketing researchers to understand the emergence of such important and pervasive marketing institutions as franchise businesses.

Publication Information
Article Title: Are Some Franchisees More Entrepreneurial than Others? A Conceptual Perspective on Multi-Unit Franchisees
Journal: Journal of Business and Entrepreneurship (Jan, 2000)
Volume 12
Author(s): Grunahgen, Marko;  Mittelstaedt, Robert A
Researcher Information
    
Mittelstaedt, Robert A
Mittelstaedt, Robert A
Emeritus
Marketing
HLH 345
P.O. Box 880492
University of Nebraska-Lincoln
Lincoln, NE 68588-0492, USA
Phone: (402) 472-2316
Fax: (402) 472-9777
rmittelstaedt1@unl.edu