The article also reflects on the DARK SIDE of the long term relationship of the partners in franchising. The article further mentions the absence of investigating thefranchising phenomenon from the customers perspective. Further, the author has alsoexplained the inverse relationship between autonomy and dependence in the franchiseindustry. Overall, the article focuses on the international aspects of franchising, structures andstrategies of franchising, and cross culture evaluation of franchising.
In this article, author Rajiv P. Dant discusses on various theories relating tofranchising that are questioned. The etic-oriented franchising theory (Niblo and Jackson2004; Berry 1969), about the cross cultural and emic generalizability was questioned.Ownership redirection theory (Lafontaine 1993; Gallini and Lutz 1992), and resourceconstraints theory (Oxenfeldt and Kelly 1968; Pfeffer and Salancik 1978), were phenomenologically questioned.According to the author, the concept of franchising is an American invention, whichoffers various benefits to the entrepreneurs involved in the franchising chain (i.e. thefranchisee±entrepreneurs and the franchisor±entrepreneur). He puts forth that, althoughfranchising is world¶s fastest growing form of retailing (Dant, Kacker, Coughlan, andEmerson 2007), the franchising research has not been focused worldwide. Most of thefranchising research has been focused on single-country investigations, i.e. the United States.As mentioned in the article, franchising, being the biggest component of the U.S. economy,employs 1/7
of labour force of the country, amounting to more than $500 billion of the U.S. private sector payroll. This huge labour force helps generating excess economic output of $1.53 trillion or approx 10% of U.S. private-sector economy (Dant, Perrigot, and Cliquet2006; Reynolds 2004).Most of the research investigation in the field of franchising is done on the fast foodindustry. As put by Mr. Rajiv, franchisors are the owners rather than franchisees in thefranchise businesses. Therefore, franchising is based on investigation of franchisors. Theauthor says that it is important for the researchers to ask the basic questions relating tofranchising. The basic questions can be: