Doherty (2009) also recognises the importance of both the
process of partner selection and the criteria used in
international retail franchising and reports that franchisors
adopt both strategic and opportunistic approaches to the
process. The key difference between these two approaches is
whether it is the franchisor that initiates the process (strategic)
or the franchisee that approaches the franchisor
(opportunistic). Her study reveals that in strategic partner
selection, there is a defined process whereby appropriate
potential franchise partners are identified after a market has
been selected and specific selection criteria are used to short
list and then select the franchise partner. Selection criteria
identified include financial stability, business know how, local
market knowledge, a shared understanding of the brand and
strategic direction of the business, and chemistry between the
franchisor and franchisee. In other words, a mix of task and
partner-related criteria. In opportunistic approaches,
franchisors in the study followed a set process for setting
out their terms and conditions and for the potential franchisee
to submit a business development plan for approval. The
criteria used to evaluate partners therefore, appears to relate
predominantly to financial criteria and in these approaches,
partner selection precedes market selection.