Abstract
Franchising involves with grating and receiving business rights. In addition to the popular growth strategy for many businesses, franchising has emerged over the years as a pathway to wealth creation for entrepreneurs. In this paper we first discuss the information science of franchising, including franchisor/franchisee relationship and the essential indicators needed to pertain and flourish the good relationship; and the inevitability of collaborative learning and innovation, which leads us to the discussion of the working knowledge development among the franchisor and the fellow franchisees. Second, we discuss that an attention-based IT infrastructure that will enable the knowledge sharing and dissemination between the franchisor and the franchisee.
TopUnderstanding The Franchisor
In this section we examine the day-to-day operational activities at the franchisor headquarters. Figure 1 illustrates the interactions of the franchisor with all four of its entities: business units & customers, prospective franchisees, suppliers, and government; as well as performing relevant activities (represented by rectangles): marketing its products and services, assisting in creating distinguished brand names indispensable in attracting new customers, selling to the franchisees, and handling the diversified financing quandaries.
Figure 1. Understanding the Franchisor Learning Process
Key Terms in this Chapter
Franchisor: The individual or business who grants the business rights.
Franchising: A business opportunity based on granting the business rights and collecting royalties in return.
Franchisee Life Cycle: The stages a franchisee goes through in the franchise system: Courting, “We”, “Me”, Rebel, Renewal.
Franchisee: The individual or business who receives the business rights and pay the royalties for using the rights.
Franchisor/Franchisee Relationship Management: The vital factor for the success of a franchise, including: Knowledge, Attitude, Motivation, Individual Behavior, and Group Behavior.
Franchisor/Franchisee Learning Process: The stages of learning, including Beginner, Novice, Advanced, Master, and Professional.