This study investigates the required business-related qualifications on the part of prospective franchisees of real estate brokerage services as well as the question why they may prefer to buy a business format franchise over running an independent business based on their own experience, expertise, know-how and skills. As for the franchisor perspective, a major focus was put on the management of potential areas of conflict between power and control along the lifecycle of a franchise relationship.
Anecdotal evidence from a convenience sample of three business format franchise systems highlight the importance of intangible indicators for the quality of professional services in customers’ decision-making with brand as the driving factor for franchisees’ motivation, whereas training especially prior to opening seems to be less crucial than franchise theory suggests. The possibility to blueprint professional services and real estate brokerage services in particular is limited due to the heterogeneity of properties and local market conditions, for instance. Because of divergent economies of scale especially with regard to information technology resources, network effects also play an important role. Both franchisors and franchisees agreed on the significantly increased efficiency of franchise owners compared to branch managers. No major differences have been found in the terms and conditions of the franchise agreements.
Inhaltsverzeichnis (Table of Contents)
- A Introductory Part
- A.1 Objective and outline of the paper
- A.2 Foundations and terminology
- A.2.1 Definition and dissociation from agency and pyramid selling
- A.2.2 Typologies and the difference between business format franchises and product or trade mark franchises
- A.2.3 The role of franchising in the economy and the franchise community in New Zealand
- A.3 Franchising statistics
- A.3.2 Uneven pattern of development in product/trade mark franchising and business format franchising
- A.3.3 Franchising industries
- A.3.4 Regulations and institutions
- B Theoretical Part
- B.1 Motivations in business format franchise systems
- B.1.1 Why franchise a business?
- B.1.2 Why take up a franchise?
- B.1.3 Disadvantages of franchising
- B.2 Franchisor-franchisee relations
- B.2.1 Power and control in business format franchises
- B.2.2 Strategies for avoiding dissatisfaction
- B.3 Structure of business format franchise agreements
- B.3.1 General comments
- B.3.2 Negotiability of the contract
- B.3.3 Duration of the franchise contract
- B.3.4 Territorial rights
- B.3.5 Payments
- B.3.6 Termination
- B.3.7 Assignment
- B.1 Motivations in business format franchise systems
- C Empirical Part
- C.1 Survey design
- C.1.1 Selection of franchise systems
- C.1.2 Method of survey
- C.2 Background
- C.2.1 Company profiles
- C.2.2 Franchise development
- C.3 Franchisor perspective
- C.3.1 Motivations
- C.3.2 The pre-opening relation
- C.3.3 Nature of the franchise
- C.3.4 Key features of the franchise agreement
- C.4 Franchisee perspective
- C.4.1 Motivations
- C.5 Franchisor-franchisee relations
- C.5.1 Communication
- C.5.2 Problems
- C.5.3 Controls
- C.6 Summary and conclusions
- C.1 Survey design
- Appendix
- D.1 Definitions of franchising by the IFA and BFA
- D.2 Covering letter to franchisors with interview outline
- D.3 Guideline for semi-structured interviews with franchisors
- References
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research paper investigates the business-related qualifications required for prospective franchisees in the real estate brokerage services industry. It aims to understand why they might prefer a business format franchise over an independent business. Additionally, the study explores the management of potential conflicts between franchisor power and control throughout the lifecycle of a franchise relationship.
- Motivations of franchisees in the real estate brokerage industry
- Comparison of business format franchising with independent business models
- Power dynamics and control in franchise relationships
- Impact of franchising on the efficiency of real estate brokerage operations
- The role of brand and training in the success of real estate franchises
Zusammenfassung der Kapitel (Chapter Summaries)
The introductory chapter sets the stage for the research by defining key terms, outlining the paper's objectives, and providing an overview of the role of franchising in the New Zealand economy. It discusses the historical development of franchising and its distinction from other business models.
Chapter B delves into the theoretical foundations of business format franchises. It examines the motivations behind franchising from both the franchisor and franchisee perspectives, analyzing the advantages and disadvantages of this model. The chapter also explores the dynamics of power and control in franchise relationships, including strategies for managing potential conflicts.
Chapter C presents the empirical findings of the research, focusing on a comparative field study of selected New Zealand real estate brokerage franchises. It discusses the design and methodology of the survey, provides background information on the franchise systems studied, and analyzes the perspectives of both franchisors and franchisees. The chapter explores the motivations behind franchisee choices, the pre-opening relationship between franchisor and franchisee, and the key features of franchise agreements. It also examines the dynamics of communication, potential problems, and control mechanisms within franchise relationships.
Schlüsselwörter (Keywords)
This research paper focuses on franchising, particularly in the professional services industry, with a specific emphasis on real estate brokerage services in New Zealand. The core concepts explored include motivations of franchisees, franchisor-franchisee relations, power dynamics, control mechanisms, brand, training, and efficiency in the context of real estate brokerage.
- Quote paper
- Thilo A. Bäß (Author), 1998, Motivations and Relations in Business Format Franchise Systems, Munich, GRIN Verlag, https://www.grin.com/document/492144
