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.
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.3.1 Uneven pattern of development in product/trade mark franchising and business format franchising
- A.3.2 Franchising industries
- A.3.3 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
- 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
Objectives and Key Themes
This study aims to investigate the business qualifications needed by prospective real estate brokerage franchisees and their reasons for choosing franchising over independent business ownership. It also examines franchisor management of potential conflicts related to power and control within the franchise lifecycle. The research utilizes a comparative field study approach, incorporating semi-structured interviews and a comparison of theoretical and practical franchising aspects within the New Zealand real estate sector.
- Business qualifications of real estate franchisees
- Comparison of franchising vs. independent business ownership
- Management of power and control in franchise relationships
- The role of brand and training in franchise success
- Efficiency comparisons between franchise owners and branch managers
Chapter Summaries
A Introductory Part: This introductory section lays the groundwork for the entire study. It defines the scope of the research, focusing on business format franchises within the New Zealand real estate brokerage industry. The section establishes the key research questions, outlining the investigation into the motivations of both franchisors and franchisees and the dynamics of their relationships. It also introduces the methodology, explaining the use of a comparative field study involving semi-structured interviews with practitioners and a comparison with data from a large national survey on franchising. Finally, it provides a concise overview of the structure of the paper, guiding the reader through the subsequent theoretical and empirical sections. The definitions and distinctions between franchising, agency, and pyramid selling are clearly established, setting the stage for a precise analysis of the chosen business model.
B Theoretical Part: This section delves into the theoretical underpinnings of franchising, examining the motivations behind both franchising a business and choosing to become a franchisee. It explores the potential downsides of franchising, setting the stage for a balanced perspective. A crucial focus is the complex relationship between franchisor and franchisee, exploring power dynamics and strategies for managing conflict. The section also provides an in-depth analysis of franchise agreements, including their structure, negotiability, duration, territorial rights, payment terms, termination clauses, and assignment procedures, giving the reader a comprehensive understanding of the legal and contractual frameworks governing franchise relationships.
C Empirical Part: This section presents the empirical findings of the study. It details the research design, including the selection of franchise systems and the methodology employed (semi-structured interviews). The section provides detailed company profiles of the selected franchise systems, outlining their background and development. Separate analyses are provided for the franchisor and franchisee perspectives, covering their motivations, pre-opening relationships, the nature of the franchise agreements, and key aspects of the franchisor-franchisee relationship. The section includes a discussion of communication strategies, problem-solving approaches, and control mechanisms employed to manage the franchise relationship effectively. These findings highlight practical applications and real-world considerations within the context of the New Zealand real estate brokerage franchise landscape.
Keywords
Franchising, professional services, real estate, brokerage, New Zealand, business format franchise, franchisor-franchisee relations, power, control, motivations, franchise agreements, empirical research.
Frequently Asked Questions: A Comprehensive Language Preview of Franchising in the New Zealand Real Estate Sector
What is the overall focus of this study?
This study investigates the business qualifications needed by prospective real estate brokerage franchisees, their reasons for choosing franchising, franchisor management of conflicts related to power and control, and efficiency comparisons between franchise owners and branch managers. It uses a comparative field study in New Zealand's real estate sector.
What are the main sections of the study?
The study is divided into three main parts: An introductory section defining franchising and laying out the research methodology; a theoretical section exploring the motivations of franchisors and franchisees and the dynamics of their relationships; and an empirical section presenting the findings of a field study, including semi-structured interviews and company profiles.
What is covered in the Introductory Part (Section A)?
This section defines franchising, distinguishes it from agency and pyramid selling, provides New Zealand franchising statistics, and outlines the study's objectives and methodology. It also clarifies the types of franchising (business format and product/trademark) and their prevalence in New Zealand.
What is discussed in the Theoretical Part (Section B)?
This section delves into the motivations for both franchisors and franchisees, exploring the advantages and disadvantages of franchising. It focuses on franchisor-franchisee relations, power dynamics, conflict management strategies, and a detailed analysis of franchise agreements (structure, negotiability, duration, territorial rights, payments, termination, and assignment).
What does the Empirical Part (Section C) entail?
This section presents the empirical findings. It details the research design (selection of franchise systems and survey method), provides company profiles, and analyses the franchisor and franchisee perspectives separately. It covers motivations, pre-opening relationships, franchise agreement features, communication strategies, problem-solving, and control mechanisms within the franchise relationships.
What are the key themes explored in the study?
Key themes include the business qualifications of real estate franchisees, a comparison of franchising versus independent business ownership, the management of power and control in franchise relationships, the role of brand and training in franchise success, and efficiency comparisons between franchise and branch management.
What is the methodology used in this study?
The study employs a comparative field study approach. This includes semi-structured interviews with practitioners in the New Zealand real estate sector and a comparison with data from a large national survey on franchising.
What are the key takeaways or conclusions of the study (as previewed)?
The preview doesn't provide specific conclusions, but it suggests the study will offer insights into the motivations and relationships between franchisors and franchisees in the New Zealand real estate brokerage industry, highlighting practical aspects of franchise agreements and management.
What are the keywords associated with this study?
Keywords include: Franchising, professional services, real estate, brokerage, New Zealand, business format franchise, franchisor-franchisee relations, power, control, motivations, franchise agreements, and empirical research.
For whom is this study intended?
The study is intended for academic use, focusing on the analysis of themes within the franchising context. It is suited for researchers and those interested in the business aspects of franchising, particularly within the real estate sector.
- Citar trabajo
- Thilo A. Bäß (Autor), 1998, Motivations and Relations in Business Format Franchise Systems, Múnich, GRIN Verlag, https://www.grin.com/document/492144
