T. Although franchising has long been recognised as an attractive
means of growing a business, the impact of franchising for small
businesses is an area that is relatively less researched and understood.
Whilst resource scarcity and agency theory suggest many potential benefits
to franchised firms, small businesses wishing to franchise are likely to
encounter a number of challenges in translating their business concept
into a successful franchise operation. This paper seeks to provide an insight
into the challenges franchised firms are likely to face and considers
the implications of franchising for small businesses’ growth. Given the
relative paucity of research in the area, this study has utilised a case study
approach in order to provide a rich description and insight into the experiences
of six businesses which have tried to expand using franchising,
three of which have successfully grown, and three of which have subsequently
withdrawn from franchising. It appeared that many of the “failed”