Towards a conceptual model for franchise perceptual equity

Leslie, Thomas W. K.; McNeill, Lisa S.
September 2010
Journal of Brand Management;Sep2010, Vol. 18 Issue 1, p21
Academic Journal
Franchising is fast becoming a dominant model of business throughout the world, and the current study adds to a growing body of literature surrounding product or trade name franchising by examining the non-financial value of the franchise brand as perceived by potential, current and ex-franchisees. Two franchise brand cases in the home services industry are examined and the study uncovers some key value-related consideration factors for franchisees before, during and after their involvement with a business. Major findings highlight the importance of the start-up package offered to potential franchisees in terms of training and guaranteed support mechanisms, and show that the key to maintaining ongoing commitment from franchisees tends to centre on management of the brand and the relative power of the brand within the industry as a whole. A conceptual model for franchise perceptual equity is thus detailed in relation to these findings.


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