Business format franchising in Australia has been consistently growing since the start of the 1970s. The development of the franchising sector has been traced through periodic surveys from 1988 to 1998 and the latest presents an opportunity to assess the level of maturity attained.
No widely accepted basis exists for measuring maturity in a nation's franchising sector. As a result, a framework for assessing the level of development is proposed, consisting of a number of attributes that may be expected to develop over time. The performance of Australian franchises is compared against these attributes wherever appropriate evidence is available from the surveys.
The conclusion is reached that Australian franchising exhibits many of the attributes that indicate the achievement of a level of early maturity. Some aspects however have not yet developed to the extent expected. These offer opportunities for national franchise associations and governments to develop strategies strengthening franchise performance.
Get full access to this article
View all access options for this article.
References
1.
AhmadZ. and WiddowsR. (1996), “A program for using franchising as a means of developing indigenous entrepreneurship skills and thereby promoting national growth,” In Partners for Progress…A world of opportunities, Proceedings of the 10thConference of the Society of Franchising, Honolulu, ed A. Dugan, 1–35.
2.
Australian Bureau of Statistics (ABS)Franchising Sector Survey Results - 19941994Department of Industry Science and TechnologyCanberra
3.
BrickleyJ.A.DarkF.H.The choice of organizational form - the case of franchisingJournal of Financial Economics181987401–420
4.
BrickleyJ.DarkF.WeisbachM.An agency perspective on franchisingJournal of the Financial Management Association201199127–35
5.
Bureau of Industry Economics (BIE)Small Business Review 1988-891990BIECanberra
6.
CavesR.E.MurphyW.F.Franchising: firms, markets, and intangible assetsSouthern Economic Journal421976572–586(April)
7.
DantR., KaufmannP. and RobicheauxR. (1998), “Changes in the mix of company-owned and franchised outlets: Ownership redirection revisited”. In Franchising Research: Legal Economic and Managerial Developments, Proceedings of the 12thConference of the Society of Franchising, Las Vegas, ed. F. Lafontaine, 1–16.
8.
DantR.P.PaswanA.K.StanworthJ.Ownership redirection trends in franchising - A cross-sectoral investigationInternational Journal of Entrepreneurial Behaviour and Research23199648–67
9.
Department of Industry Technology Commerce (DITAC)Franchising - Australia and Abroad1992DITACCanberra
10.
FrazerL.Motivations for franchisors to use flat continuing franchise feesThe Journal of Consumer Marketing1561998587–597
11.
FrazerL.McCoskerC.The challenge of regulation of franchising: A preliminary examination of new legislation affecting a growing sector of small business in AustraliaRent XIII – Research in Entrepreneurship and Small Business – 13th WorkshopLondon19991–14
12.
FrazerL. and McCoskerC. (1995/6), “An exploratory analysis of the use of franchise fees in Australian franchises,” Small Enterprise Research: The Journal of SEAANZ, 4,(1 and 2), 78–94.
13.
FrazerL. and TerryA. (2000), “Franchise Terminations: A Study of the Australian Experience” in Franchising: Quo Vadimus, Proceedings of the 14thConference of the International Society of Franchising, ed A. Paswasn, San Diego, 1–16.
14.
GommN. (1992), “Franchising in the United States,” Franchising Australia and Abroad: Supplement to the Franchising Task Force Final Report, Better Printing Service, Queanbeyan, 83–100.
15.
HartnettM.The Master PlanFranchise198714–21May
16.
HotchR.FranchisingNation's Business198651–56June
17.
HoyF.The dark side of franchising or appreciating flaws in an imperfect worldInternational Small Business Journal122199426–38
18.
HuntS.The trend toward company-operated units in franchise chainsJournal of Retailing49219733–12(Summer)
19.
Japan Franchise AssociationFranchise Age1997Japan Franchise AssociationTokyo
20.
JulianS.D.CastrogiavanniG.J.Franchisor geographic expansionJournal of Small Business Management33219951–11(April)
JustisR.T.JuddR.Master franchising: A new lookJournal of Small Business Management198616–21(July)
23.
KaufinannP.J.DantR.P.Multi-unit franchising: Growth and management issuesJournal of Business Venturing111996343–358
24.
KaufinannP.J.KimS.H.Master franchising and system growth ratesKaufinannP.J.DantR.P.Franchising: Contemporary Issues and Research1995Haword PressNew York49–64
LillisC.M.NarayanaC.L.GilmanJ.L.Competitive advantage variation over the lifecycle of a franchiseJournal of Marketing404197677–80
27.
LimJ. and FrazerL. (2000), “Franchising Code delivers mixed blessings,” Franchising Law and Policy Review, accepted, forthcoming.
28.
McCoskerC.FrazerL.Franchising Australia 19981998University of Southern Queensland and Franchise Council of AustraliaToowoomba
29.
McCoskerC, FrazerL. and PensieroD. (1995), “An exploration of franchise advisory councils: expectations and relationships” In The International Challenge…Towards New Franchising Relationships, Proceedings of the Ninth Annual Society of Franchising Conference, ed WelshD. H. B., Minneapolis, 1–26.
30.
MendelsohnM.International master franchising agreementsBusiness Format Franchising in Australia1991Legal BooksSydney130-140
31.
MendelsohnM.The Guide to Franchising6th edition1999CassellLondon
32.
NortonS.W.An empirical look at franchising as an organizational formThe Journal of Business6121988197–218(April)
33.
OxenfeldtA.KellyA.Will successful franchise systems ultimately become wholly-owned chains?Journal of Retailing444196869–83Winter
34.
PurdyD.StanworthJ.HatcliffeM.Franchising in Figures1996Lloyds Bank and International Franchise Research CentreLondon
35.
RobicheauxR.A., DantR. and KaufmannP. J. (1994), “Multiple unit franchising in the fast food industry in the United States: incidence and operating characteristics”. In Understanding and Accepting Different Perspectives …Empowering Relationships in 1994 and Beyond, Proceedings of the Eighth Conference of the Society of Franchising, ed SwerdlowS., Minneapolis.
36.
ShermanA. J. (1993), “Building a foundation for the responsible development of a franchising program”. In Excellence’93: A Bridge to Success, Proceedings of Society of Franchising Seventh Annual Conference, ed DantR. P., Minneapolis.
37.
StanworthJ.SmithB.The Barclays guide to franchising for the small business1991BlackwellOxford
38.
TerryA. (1996), “The regulation of franchising in Australia: Reviews, roundabouts and realpolitik”. In Partners for Progress…A world of opportunities, Proceedings of the 10thConference of the Society of Franchising, ed DuganA., Honolulu, 1–35.
39.
TerryA.The distribution of goods and services through business format franchising- {part 1}Current Commercial Law11199318–23(March)
40.
TuckmanB.W.Developmental sequence in small groupsPsychological Bulletin1965May
41.
WelshD.H.B.EditorialFranchising Research: An International Journal1119963
42.
WilliamsD. (1996), “Franchise contract terminations: Is there evidence of franchisor abuse?” In Partners for Progress…A world of opportunities, Proceedings of the 10thConference of the Society of Franchising, ed DuganA., Honolulu, 1–35.
