Entrepreneurial Teams within Franchise Firms

In the research on franchising firms, several assumptions are generally made. One such assumption is that the role of the entrepreneur is predominantly associated with franchisors, and that franchisees operate under a uniformly regimented system of contractual obligations. Given the restrictions and...

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Bibliographic Details
Published in:International small business journal 2005-06, Vol.23 (3), p.303-334
Main Authors: Clarkin, John E., Rosa, Peter J.
Format: Article
Language:English
Subjects:
Business economics
Business enterprises
Business studies
Empirical research
Entrepreneurs
Entrepreneurship
Franchisees
Franchises
Franchising
Innovations
Management
North America
Organizational behavior
Quantitative analysis
Small and medium sized enterprises
Studies
Teamwork
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Summary:In the research on franchising firms, several assumptions are generally made. One such assumption is that the role of the entrepreneur is predominantly associated with franchisors, and that franchisees operate under a uniformly regimented system of contractual obligations. Given the restrictions and rules, franchisees have few opportunities for entrepreneurial creativity, serving as owner-managers of a single outlet in a prescribed role of managerial convenience. This study reveals a much more complex and dynamic pattern of relationships between the franchisors and franchisees. Evidence of entrepreneurial teamwork is found, where creativity and adaptation is not always confined to franchisors, and several forms of nested teams within franchising firms are examined. Using both quantitative analysis of secondary data from 1201 North American franchises and in-depth interviews, evidence of entrepreneurial teamwork within the context of franchising firms is presented. The study reveals that restrictive franchise agreements were not always rigorously enforced unless problems occurred, allowing room for entrepreneurial activity by franchisees.
ISSN:0266-2426
1741-2870
DOI:10.1177/0266242605052075