E-Entrepreneurship and Innovation in Franchising

E-Entrepreneurship and Innovation in Franchising

Ye-Sho Chen (Louisiana State University, Baton Rouge, USA)
Copyright: © 2019 |Pages: 12
DOI: 10.4018/IJEEI.2019010101


Franchising has been a popular approach to growing a business. Developing an effective strategy of e-entrepreneurship and innovation for growing a franchise business and making it resilient is also getting popular. In this article, the authors show that building up a good “family” relationship between the franchisor, the franchisees, and the communities is the real essence of franchising, and the e-entrepreneurship and innovation strategy shall be designed to enhance and advance the “family” relationship. Specifically, the authors discuss the strategy of how to make e-entrepreneurship and innovation “meaningful” in franchising. Future trends on making franchises resilient, cyber security and sustainability are also discussed.
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Franchising: Building The Franchisor/Franchisee Relationship

Franchising is “a business opportunity by which the owner (producer or distributor) of a service or a trademarked product grants exclusive rights to an individual for the local distribution and/or sale of the service or product, and in return receives a payment or royalty and conformance to quality standards. The individual or business granting the business rights is called the franchisor, and the individual or business granted the right to operate in accordance with the chosen method to produce or sell the product or service is called the franchisee.” (Justis and Judd, 2002, pp. 1-3) Developing a good relationship between the franchisor and the franchisee is the key for a successful franchise (Justis and Judd, 2002). Figure 1 describes how to build a good franchisor/franchisee relationship.

Figure 1.

Understanding how the franchisor/franchisee relationship works


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