Fostering Franchising Intention of SMEs in Vietnam: A Motivation-Opportunity-Ability Perspective

Abstract

Franchising is one of the most interesting areas of management research, attracting researchers and practitioners from all over the world. Many factors that drive franchising intention have been identified by previous researchers. They also demonstrated that there are numerous research gaps in this subject that must be filled. The primary goal of this study is to identify and test new factors of franchising intent. Finally, to clarify the role of these components, this study used the Motivation - Opportunity - Ability paradigm. To test the hypothesis, SmartPLS software was used to evaluate a total of 252 valid questionnaires collected from small and medium businesses in Hanoi, Vietnam. The findings revealed that franchisee motivation, franchisor support, and asset specificity have a positive impact on franchising intention. In whatever case, the opportunity has the greatest impact on participation intentions. In terms of the impact level on SMEs' intentions in the franchise system, ability comes in second. Furthermore, the moderating influence of franchisee asset specialization in the relationship between opportunity and franchising intention is confirmed by this study. This study examines the theoretical and practical contributions, as well as their limitations, and suggests some future research on the subject.

1. Introduction

ThØgersen and Olander (1995) published the first Motivation – Opportunity – Ability (MOA) in 1995 to investigate pro-environmental behavior. MOA has been utilized in a variety of studies on consumer behavior in a variety of sectors, including cable television, fast food, travel, and so on. To develop franchising intention, we apply the notion of Motivation – Opportunity – Ability. Apart from the standard business structure, franchising is a prospective business trend that optimizes several areas to assist concretize long-term business direction. With a selling contract, the franchisor can distribute goods or services to franchisees using the franchise brand name and business procedures. The majority of previous research has concentrated on motivation and opportunity-related variables, with little attention dedicated to ability-related ones. International franchising systems now act like businesses, with legal choices and obligations made by franchisees holding the franchisor accountable. In society, competitive advantage should be measured in terms of brand value, distinction, and profit value that can be realized through time and can last in the market. If it’s a new small firm, there are likely to be dangers and uncertainties, as well as a variety of management skills required of small business owners.

The development of franchising is as to how to minimize the risks of small business management has been. Brand name, economies of scale, or efficient execution of the franchise system is competitive advantages of a franchise system of attracting new franchisees and maintaining franchisees’ loyalty in the franchise system (Nguyen & Nguyen, 2021). According to the resource scarcity theory, franchising should be started in the early phases of growth to overcome capital and managerial resource limits, but as the company grows older, the possibility of franchising will decrease. Franchisees can help small and medium-sized businesses overcome resource constraints by providing simple access to financial and human capital, as well as market knowledge. The benefits of promoting and maintaining franchise brand equity are shared by both franchisors and franchisees.

Multiple entities that are legally autonomous, economically linked, and functionally indistinguishable to consumers make up franchise systems. When a corporation lacks the resources to expand through company-owned entities, it prefers to franchise. The tendency to the franchise is linked to international expansion. The more geographical and cultural distance involved in overseeing foreign agents could lead to more franchise agreements. Much of the success of franchise business models may be related to branding, since enterprises with significant brand equity are able to achieve a sustainable point of differentiation and obtain more financial leverage than those without. Follow resource scarcity theory, the idea that franchising is a relatively inexpensive way to expand operations, increasing revenue through franchise fees, royalties, and sales to franchisees and substituting franchisee investment in local operations for parent company investment in local operations.

Entrepreneurial orientation (EO) is dependent on the extent to which it can be cultivated among Entrepreneurial orientation (EO) is determined by the extent to which it can be fostered among franchisees within a franchise system (Hoang & Truong, 2021), as well as if franchisees may be called entrepreneurs in the first place (Falbe & Welsh, 1998). Franchise agreements were designed to share risks (Bhattacharyya & Lafontaine, 1995), allowing franchisors to retain control of profitable units with predictable revenue while relinquishing management of risky locations with uncertain revenue. Individuals who have a strong emotional attachment to a company are more likely to be organically motivated and act in ways that support the firm’s objectives (Hughes & Ahearne, 2010). Many studies have revealed the characteristics that contribute to the success of a franchise. The purpose of this research is to look at the elements that influence franchising intentions. This study seeks to address the following research questions to assess the efficiency of the frnachise system and contribute to the literature and practice:

To begin, what role does motivation play in the decision to franchise?

Second, how much do opportunity and capability influence franchising intent?

2. Background Theory and Hypothesis Development

The fact that franchising is created in different local market settings has led to a lot of debate over how entrepreneurial tendencies might thrive inside this organizational form after realizing standardization. Although EO - Entrepreneurial orientation is undisputed at the franchisor level, permitting EO among franchisees within a franchise system could be counterproductive, as the dimensions (such as franchisee innovations) can be destructive rather than advantageous to the system. Franchisees may deviate from the franchisor’s proven methods if they want to pursue their business interests (Baucus et al., 1996) Because franchising is formed in a variety of local market settings, there has been a lot of discussion about how entrepreneurial tendencies could thrive inside this organizational form after standardization is achieved. Allowing EO among franchisees inside a franchise system could be unproductive, as the aspects (such as franchisee innovations) can be detrimental rather than beneficial to the system. If franchisees desire to follow their commercial interests, they can diverge from the franchisor’s proven procedures (Egmond & Bruel, 2007).

2.1. Motivation

When it comes to franchising, many people confuse assignment with the franchise, although they are two very different things. Many people believe that a brand is something that is used to distinguish the products of various firms. The most appropriate concept, according to Intellectual Property Law, is “trademark.” A high-quality product or service that is well-received by customers will earn a place in the customer’s mind, and the company’s brand will be an effective instrument in achieving that goal. Some businesses seek to transfer their trademarks to other corporations, or “re-sell, ” for a variety of reasons relating to business activity. Another option to earn from a trademark is to enable another company to use it “for rent” while the firm retains legal ownership of the brand.

The transfer of the right to use a mark means that the owner of the mark authorizes another organization or individual to use the mark within the limits of his use right. Trademark assignment is the transfer of ownership rights by the trademark owner to another organization or individual. In a franchise, the acquisition and sale of goods, as well as the provision of services, must be performed in line with the franchisor’s method of business organization and must be associated with trademarks, trade names, business secrets, slogans, and symbols (Cox & Mason, 2007). The franchisor has the right to manage and assist the franchisee in operating the business; the franchisor has the right to control and assist the franchisee in running the business. Licensing of use rights only transfers the rights to a certain intellectual property object, with the primary goal of maximizing the product’s worth.

To lead to the franchising intention, there are many motivating factors including intrinsic motivation and extrinsic motivation. Communication is the intrinsic motivation factor. Communication not only can affect a franchisee’s perceived trust in a franchisor positively, but it also can influence a franchisee’s overall satisfaction. Communication is said to be one of the major aspects in developing and maintaining excellent channel relationships to reduce the bad side of relationship problems. Not only can mutual trust be established, but it can also help to prevent friction in franchisor-franchisee interactions (Cox & Mason, 2007). They may have little incentive to protect brand equity if there are no negative consequences for their short-term revenues, whereas franchisees are expected to contribute to the development of the franchise brand. When it comes to franchisees’ objectives, intrinsic goals matter, whereas external goals and the desire for autonomy do not. It is in line with Carsrud and Brännback (2011) who emphasized the importance of intrinsic goals.

Given the widely varied interests and objectives of franchisors and franchisees, managing franchise relationships is tough. Restaurant franchising is a business model that focuses on cost control, resource demand, and knowledge transfer (Hsu et al., 2010). Restaurants with agency issues and a lack of resources can profit more from franchising if they understand the antecedents of a franchisee’s satisfaction and intention to continue in a franchise system (Hsu et al., 2010). Intangibility and heterogeneity are two characteristics of restaurant products and services. Because homogeneity is a major concern in the service industry, a company should be less likely to use franchising when specific job knowledge is difficult to teach. SET discusses how behavioral or economic elements affect B2B relationships in franchising (Harmon & Griffiths, 2008) by behaving of them when they are showered with benefits by a business partner, using identity-based brand management (IBBM) perspective. Given that self seeking behavior, as well as cooperation and reciprocity in terms of mutually economic and non-economic benefits, SET provides an appropriate theoretical foundation to understand how to franchise relationships are shaped. It’s also been used in franchise business connections, where reciprocity is a crucial factor in determining the worth of the relationship (Harmon & Griffiths, 2008).

When it comes to the belief relationship, if the company has enough cash on hand, the franchisor may concentrate on maximizing the profits of existing outlets. As a result, fresh franchising may come to an end, and the franchisor may attempt to repurchase the most profitable franchisee outlets. Even though all parties are responsible for building and managing the franchise brand, neither franchisors nor franchisees have complete control over the brand management process. Trust between parent firms is said to be necessary for knowledge in hybrid relationships. When researching the impact of social embeddedness on the transmission of implicit and explicit knowledge. Not only do you have to believe, but you also have to share intrinsic motivation. Knowledge of intrinsic motivation is essential in addition to communication, believing, and sharing. Because the frequency of phone calls, personal acquaintances, and meetings in stores owned by the same franchisee is significantly higher than in stores owned by different franchisees, information is primarily transferred between stores owned by the same franchisee but not between stores owned by different franchisees. Achieving competitive advantage requires successful replication of the business concept by franchisees and management of local stores (Argote & Ingram, 2000). Franchising networks entail the provision of system-specific knowledge to franchisees to develop a network of successful franchised shops. Higher network partner efficiency results in a larger residual surplus for the entire system. According to intrinsic motivation, franchisors should build and maintain strong ties between franchisees and the franchise brand.

Customer relationships, B2C (franchise-customer inter- actions, geographical factors, local brand, geopolitical consi- derations, etc., ) are all examples of extrinsic motivation. Franchisees must align their behavior and identify with the franchise brand to be effective brand ambassadors or representatives, and franchisors must effectively implement initiatives that enhance brand relationships and enable franchisees to show values consistent with the franchise brand. Detrimental feelings and emotions against a brand can have a negative impact on franchise relationships, preventing cooperation, trust, and mutual understanding, and even leading to relationship termination. Franchisors should invest in structures that improve their capabilities and establish clear communication channels with franchisees to facilitate the transfer of competencies and cultivate competence-based trust, which can reduce opportunistic behavior. Franchisors should also be able to identify when to take appropriate action, provide support, and understand factors that promote BCB throughout the various stages of the franchisor-franchisee relationship.

Local enterprises in these areas frequently lack awareness of the capabilities required for global competitiveness but look to their foreign parent for this vital information. The likelihood of becoming a restaurant franchisor increases as a company expands regionally into different states or nations. As network organizations with extensive social contacts, franchising enterprises have the potential to profit from the knowledge provided by their distributed network members. Effective entrepreneurial franchisee behavior can be replicated across the franchise system, assisting in the long-term renewal of the business model and systematically increasing the franchise system’s performance (Subawa et al., 2020). Geographic dispersion, according to Lafontaine, could improve the likelihood of becoming a franchisor. Franchisors may encounter long lines of potential franchisees. Franchise contracts typically impose retail quality standards, common hours of business, price controls, and nonlinear payment schedules on franchisees, while franchisors typically provide national advertising and training programs, monitor, and inspect franchisees’ performance, and retain the residual power to terminate the franchise agreement (fix initial royalty fee plus a percentage of gross retail revenues). Local brand franchises are limited by binding agreements on franchising, courage in creativity and innovation, responsiveness to instant culture, adaptive to changes in consumer lifestyle, multi-level hegemony, and capitalism (Subawa et al., 2020). So this research proposes that:

H1: Motivation is positively related to franchising intention.

2.2. Opportunity (Support Franchisor)

ThØgersen and Lander prefer to think of opportunity as ‘objective preconditions for behavior, ’ yet opportunity in franchising is support franchisor. Successful franchise brand management is a reflection of the added value of both B2B (franchisor-franchisee) and business-to-consumer (B2C) (franchise-customer) fosters a common goal, that is, building the franchise brand. Since franchisees’ motivation varies with the strategy employed by the franchisor, relationship benefits are also likely to vary based on the franchisor’s strategies, franchisors can reap benefits from creating an environment that encourages franchisees to engage in BCB through transparent, unconstrained structures, and equitable decision making (Hopkinson & Hogarth‐Scott, 1999). The relationship between the franchisor and the franchisee can be built over time, and franchising has several advantages, such as lowering expenses and reducing the volatility of the franchisor’s cash flow. Royalties from franchisees are a part of franchisor cash flow, which can minimize franchisor business risk because the income stream is unaffected by the economy (Hopkinson & Hogarth‐Scott, 1999).

When having franchising intention, share risk and control cash flow from franchisees. Cash flow may be increasing to invest in other things. Franchising provides firms with lower risk and low-cost access to markets that are not economically worthwhile for them to pursue through wholly-owned units (Dahlstrom & Nygaard, 1994). From design, decoration, packaging, and space, the successful business model is replicated many times through franchising. Due to the franchisor’s utmost support, the franchisee can completely manage and operate it even at the start. The franchisor has a number of options for transferring the franchise: Training, conference meetings, outlet visits, phone, fax, intraand internet-based electronic transfer mechanisms, and other electronic transfer mechanisms A franchisee or a franchisor cannot afford to waste time and energy on a sour relationship. The previous researches results showed that training and operational guidelines assistances were the most important services for which a franchisee was looking. In the pretest, financing support was shown to be unimportant, and most franchise systems in Taiwan require franchisees to manage financing issues on their own. To be considered as a franchisee in a competitive franchise system, most competitive franchise systems ask their franchisees to prove their financial competence.

In today’s world, establishing and maintaining a competitive advantage requires franchisors to respond quickly to changes in the market environment. Franchisors tend to own or buy back the more profitable and less risky outlets and to franchise the less profitable and riskier outlets. In addition, franchising can reduce the volatility of franchisor cash flow. Because of the need for more monitoring personnel and travel expenses, a firm enters geographic markets that are far away from its headquarters, the cost of monitoring the managers of the outlets’ increases (Carney & Gedajlovic, 1991). Given the interdependence of franchisors and franchisees, as well as the likelihood of a double-sided moral hazard, one of the franchisors’ key goals should be to connect franchisee identities with franchise brand value. Companies that operate throughout a larger geographic area find additional obstacles in monitoring and controlling their outlets, hence they choose to franchise rather than own units in their system (Baucus et al., 1996). Franchisees’ overall contentment and intention to stay in the franchise system may be affected by the franchise system’s competitiveness. So this research proposes that:

H2: There is a positive relationship between support franchisor (Opportunity) and franchising intention.

2.3. Ability (Asset Specificity of Franchise)

The franchisees’ brand equity is a unique asset. Brand equity refers to the differential impact of brand knowledge on consumer response to a brand (Keller, 2003). It strengthens the franchisee’s commitment. From the standpoint of the retailer, brand equity covers three conceptual ideas: the equity associated with the brand, the equity associated with the brand, and the retailers’ impressions of the brands they sell. The change in lifestyles and travel is helping to expand franchising because of their habits and commitment to a brand based on quality and convenience. (Strong brands are a result of how internal stakeholders rationalize who they are within the organization and what is distinctive or enduring about that organization. Brand equity is significant and well known in the marketplace. Both parties’ internal franchise branding initiatives must be well-coordinated and integrated. To establish a brand, it is critical to have a strong brand personality. Due to the fact that neither a franchisor nor its franchisees have complete control over the brand-building process, it is difficult to discern who makes the critical brand decisions.

The services provided by the franchisor have an important role in establishing franchisees’ overall satisfaction and com- mitment. Brands are imbued with human-like qualities that can lead to the establishment of self-brand relationships to foster a common goal, namely, to grow the franchise brand through personal (customer) interactions. Many studies have shown that long-practiced behavior is impacted by antecedents other than intention, rather than being under motivating conscious control. For both customers and organizations, the habit can be a good attribute or consequence, saving cognitive effort and time (Wood & Neal, 2009). Not only they are tangible assets (product, price, place, promote, package, etc.) there are also invisible assets such as customer loyalty or customers’ shopping habits. Changing the physical settings in which consumers purchase on a regular basis (product placement, store displays, or introducing a new packaging design) has the potential to break the habit by obliterating the memory link between the context and purchasing the brand (Wood & Neal, 2009).

By shedding light on customer loyalty in general and foreign franchising in particular, fresh insights on how global businesses might strategize asset distinctiveness of franchiser brand positioning in various marketplaces are revealed. Franchisees’ first impression of their franchisor’s services is the foundation for increasing the quality of franchise relationships, the franchisor’s services are the foundation for enhancing the quality of franchise relationships (Hoang & Truong, 2021; Teixeira, 1994). Restaurant businesses must retain control over quality and standards, ensuring that these components are consistent throughout the company (Hsu et al., 2010). Supporting habit formation is especially useful for organizations with a strong brand image since habit strength raises the importance of reputation (Teixeira, 1994). The franchise sales process, orientation, and training during the startup period are critical components for the success of a company’s franchise relations program (Teixeira, 1994). As a result, offering excellent support is critical in enhancing franchisees’ desire to stay in the franchise system. Franchisees actively engage in upgrading organizational procedures, providing new products or services, targeting new consumer groups, and adding new suppliers as part of their entrepreneurial behavior (Croonen, 2017). Even those who have a strong desire for autonomy prefer to keep excellent ties with their franchisors by avoiding hazardous and possibly non-compliant entrepreneurial behavior. As a result of this study, it is proposed that:

H3: Asset specificity of the franchise is positively related to franchising intention.

The research model can depict as follow (Figure 1).

Figure 1: Research Model

3. Research Methods

3.1. Questionnaire Design

This study uses a questionnaire survey to collect data to analyze the research model and test the intended hypothesis. Managers of small and medium-sized businesses in Hanoi, Vietnam, were polled. SME respondents were chosen for this study because they make up the majority of all businesses in Vietnam. Due to a lack of resources, R&D activities in this sort of business are extremely rare, so the best option for them is to join a franchising system. All items are expressed in the form of a Likert-5 scale which ranges from 1 representing disagree to 5 representing agree.

Motivation scales, in particular, include 7 questions, with intrinsic and extrinsic motivation. Four items were used for the franchisor construct, three items for the franchisee’s asset, and finally, four items were used to measure franchise intention.

To ensure the questionnaire’s validity, this study employs the back-translation technique, which enlists the help of English and franchising experts. That is, the original English items were translated into Vietnamese and then back into English, and English and franchising experts compared the two versions to create a draft version. This draft version was examined and checked with 40 managers from SMEs in a pilot test. From that, the authors formed the final version of the questionnaire.

3.2. Data Collection

The primary goal of this study is to assess other franchisors’ intentions to participate in their franchising system. According to data from the Hanoi Department of Planning and Investment (1/2021), there are around 221.228 SMEs in Hanoi, Vietnam. Hanoi, the capital of Vietnam, has a population of around 8.1 million people, making it a great opportunity for businesses of all kinds and sectors. As a result, franchising has been increasingly popular in Hanoi in recent years. Because of the internationalization movement, franchisors are not only from Vietnam but also from other countries.

According to (Hair et al., 1998), the minimal sample size would be 144 questionnaires because the questionnaire has 18 primary questions. The research team sought assistance from the Vietnam Association of Small and Medium Enterprises (VASME) to collect the most appropriate responses. The authors used a simple random sampling procedure with surveys delivered via email to SMEs in Hanoi based on VASME data. In one month, the survey was completed. Finally, after the survey, a total of 252 legitimate questionnaires were gathered from 300 questions, resulting in an 84 percent response rate. In Table 1, the demographic data of the respondents is displayed as follows:

Table 1: Demographic Information of Respondents

4. Research Results

The partial least square regression (PLS-SEM) route model was used in this work to evaluate hypotheses using the Smart PLS 3.0 software. This study’s research model is best suited for this method since it focuses on predicting and describing the complicated relationship between the variables in the model, and it is compatible with the small sample size (n = 252) compared to the total number of items.

4.1. Scales Measurement Evaluation

Cronbach’s alpha (C), composite reliability (CR), and average extracted variance were used to evaluate the scales in this study (AVE). The cut-off value is 0.5, while the minimum loading factor is 0.77 and the highest is 0.93. Furthermore, C values ranging from 0.83 to 0.92 and CR values ranging from 0.89 to 0.95 are both higher than the 0.7 limit. These findings support the scales’ reliability in meeting the requirements. Furthermore, AVE values between 0.66 and 0.81 satisfy the cut-off value of 0.5, showing that the convergence value is acceptable (see Table 2).

Table 2: Measurement Model Evaluation

This study used the AVE value of each variable in the correlation to other factors to test discriminant validity (the Fornell - Larcker criteria). The square root of AVE is bigger than the correlation coefficient with other variables, demonstrating that the scales ensure discriminant validity (see Table 3).

Table 3: Construct AVE Correlation

Because this study used a self-assessment questionnaire, the authors used variance inflation factors to screen for potential multicollinearity (VIF). According to (Hair, 2009), if the VIF value is greater than 4, multicollinearity exists. The results of the VIF tests revealed that the VIF values of all scales are less than 2.9, indicating that multicollinearity does not occur in this study.

4.2. Evaluation of Structural Model

The authors used SmartPLS software to examine the association between variables after analyzing the scales for reliability, convergence, discriminant validity, and possible multicollinearity. Figure 2 depicts the outcomes of the relationships.

The results of the data analysis show are seen in detail in Table 4 as follow.

Table 4: Testing Results of Path Coefficients

Figure 2: PLS Testing Results

Ability has a positive and significant effect on franchising intention (Beta = 0.31; p < 0.05, t-value = 6.98), according to the findings. Franchise intention is positively influenced by motivation (Beta = 0.18; p < 0.01, t-value = 4.05). Similarly, chance has a favorable effect on franchising intention (Beta = 0.34; p < 0.01, t-value = 6.97). Hypotheses H₁, H₂, and H₃ were found to be supported by the evidence. Among the three determinants identified in this study, opportunity contributes as the most influential component.

This study is furthered by examining ability moderation in the relationships between motivation and franchising intention, as well as opportunity and franchising intention. Franchisee ability can attenuate the association between opportunity and franchising intention (p < 0.01, t-value = 2.72), but not the relationship between motivation and franchising intention (p > 0.05, t-value = 2.81).

5. Conclusion

In today’s flat world, franchising has become one of the activities that many businesses, particularly SMEs in developing nations, are paying close attention to. This is a simple method for swiftly establishing and operating a new potential business. As a result, scholars in the fields of business administration in general and marketing, in particular, have paid close attention to this practice. The authors discovered that there is a need to further investigate the variables that inspire businesses to participate in franchising after reviewing past studies. To clarify the relationship between these components, this study uses the Motivation - Opportunity - Ability model. The object of the study is small and medium enterprises in the emerging economy of Vietnam. This research has both academic and practical contributions.

In terms of academics, this study demonstrates that motivation in franchising is primarily external and has a positive impact on the intention to get a business franchise (= 0.18; p 0.01, t-value = 4.05). This demonstrates that external motivation has a significant impact on small and medium-sized business franchise intentions. According to the findings, franchisees regard franchisor support as a positive chance to carry out franchise operations from franchisors (= 0.34; p < 0.01, t-value = 6.97). Among the three criteria studied in this study, this one had the most impact on franchisee franchising intentions. Furthermore, in this study model, the fran- chisee’s asset specificity symbolizes the franchisee’s com- petence. The findings revealed that a franchisee’s asset specificity has a positive impact on their franchising intention (= 0.31; p < 0.01, t-value = 6.98). Furthermore, the moderating effect of franchisee asset specificity has an effect on the relationship between opportunity and franchising intention (p < 0.01, t-value = 2.72), but not on the relationship between motivation and franchising intention (p > 0.05, t-value = 0.287), according to this research. In a nutshell, this is one of the first studies to use the MOA model in the field of franchising. This research also proposes new variables for this model, namely asset specificity of the franchisee as the ability of franchisee and franchisor support as the opportunity.

The following are some of the contributions made by this study in terms of management. To begin, this study found that franchisor managers should be aware of the aspects that influence franchisee intention, such as motivation, franchisor support, and franchisee asset specificity. Franchisee motivation entails improving the franchisee’s income and wealth; franchisor support entails all solutions to assist the franchisee in the franchising process; and franchisee asset specificity entails the franchisee’s ability, such as money, effort, and facilities. Second, before selecting the franchise, franchisees should carefully assess their motivation, franchisor assistance, and skill. Furthermore, franchisors must assist and support their franchisees throughout the franchising process. Finally, managers recognize that franchisee ability plays a significant role not only in the direct interaction with franchising intention but also as a moderator in the relationship between opportunity and franchising intention.

Despite its many theoretical and practical contri- butions, this study has certain limitations. To begin with, this study only gathered data from SMEs in Hanoi, which may result in data that is incomplete and unrepresen tative of other SMEs in Vietnam. To have a more complete and thorough research sample, future research could increase the research area. Second, this study found no variables that could mitigate these connections, such as franchisee trust, dedication, or contentment. This constraint shows that more research is needed to gain a more complete understanding of franchising. Finally, future studies could offer new factors to provide a deeper understanding of this problem, as well as other hot topics in developing country practice.