THE BLENHEIM/UNIVERSITY

OF WESTMINSTER
FRANCHISE SURVEY:
A Comparison of
U.K. and U.S. Data

Professor John Stanworth

Professor Pat Kaufmann
David Purdy

INTERNATIONAL FRANCHISE RESEARCH CENTRE

SPECIAL STUDIES SERIES NO.5

MARCH 1995

PUBLISHED BY UNIVERSITY OF WESTMINSTER PRESS

ISBN 1 85919 041 3
THE INTERNATIONAL FRANCHISE International Journal (MCB University
Press). Additionally, Franchise Growth And
RESEARCH CENTRE (IFRC) 1993-2007
Failure In The U.S. And The U.K.: A
University of Westminster, London, UK.
Troubled Dreamworld Revisited received the
Best International Paper Award in 1997,
"The International Franchise Research
again from the Society of Franchising. This
Centre (IFRC) is committed to
paper was later published in Franchising
improving the understanding of
Research: An International Journal.
franchising. This is achieved by the
publication of impartial research and
Close links were fostered with universities in
by the encouragement of informed
Rome and Pisa (Italy), Haute Alsace
debate."
(France) and Boston, Minneapolis and
Texas (USA), with a view to research
Franchising operates in a dynamic environ-
collaboration. Professor Pat Kaufmann of
ment, with new issues and challenges
Atlanta, Georgia, addressed our inaugural
emerging, including: globalisation, coping
annual strategy seminar, in 1994. Overseas
with competition, disclosure, industry
speakers in subsequent years included
regulation, managing relations with
Cheryl Babcock, Director of the Franchising
franchisee associations, franchisee
Institute, University of St. Thomas,
recruitment & market saturation.
Minneapolis (1995), Professor Rajiv Dant,
University of Boston (1996), Professor
Against this backdrop, the IFRC was
Francine Lafontaine, University of Michigan
established in 1993 by Professor John
(1997), Professor Claude Nègre, University
Stanworth (Director of the Future of Work
of Haute Alsace (1997), Colin McCosker,
Research Group at the University of
University of Southern Queensland (1998),
Westminster), supported by Brian Smith (ex-
Professor Frank Hoy, University of Texas at
BFA Chairman, franchisee, franchisor and
El Paso (1998), Professor Jack Nevin,
author), and Chair of its Steering Group.
University of Wisconsin-Madison (1999),
Professor Tom Wotruba, San Diego State
FOUNDER MEMBERS
University (1999), Professor Bruce Walker,
University of Missouri, (2000), and,
Founder members and sponsors included:
Professor Wilke English, University of Mary
Barclays Bank, the British Franchise
Hardin-Baylor (2000).
Association (BFA), Dyno-Rod, Franchise
Development Services Ltd., Lloyds Bank
IFRC members were active supporters of the
(now Lloyds Group), Mail Boxes Etc.,
International Society of Franchising, and
Midland Bank (now HSBC), Prontaprint,
hosted the ISoF 2005 conference in London.
Rosemary Conley Diet & Fitness Clubs,
Royal Bank of Scotland, The Swinton Group,
The IFRC ceased its research activities in
and Wragge & Co.
2007, when John Stanworth took retirement.
PUBLICATIONS
Web versions of IFRC Special Studies
Series Papers 1993-2001 (listed overleaf)
Their support enabled the IFRC to publish a
number of reports, including its Special
Many of the earlier papers have been re-set,
Studies Series Papers, journal articles,
to allow a successful conversion to Acrobat,
book chapters and conference papers.
and are now available online.
Two IFRC papers received three awards
John Stanworth, Emeritus Professor,
over a period of 12 months (1996-97). The
University of Westminster
first being Business Format Franchising:
http://www.westminster.ac.uk/schools/
Innovation & Creativity or Replication &
business
Conformity ?, which received the Best
International Paper Award in 1996, from the
David Purdy, Visiting Fellow,
Society of Franchising. This paper also
Kingston University
received the Outstanding Paper of 1996
http://business.kingston.ac.uk/sbrc
award from Franchising Research: An
December 2010

International Franchise Research Centre Special Studies Series Papers 1-16 Web Versions 2010 p.1
LIABILITY DISCLAIMER
The information and analysis in each report
is offered in good faith. However, neither the
publishers, the project sponsors, nor the
author/s, accept any liability for losses or
damages which could arise for those who
choose to act upon the information or
analysis contained herein.
IFRC Special Studies Papers 1993-2001
10 London: A Capital City For Franchisee
Recruitment, (Mills, Stanworth &
Purdy), 1997
11 The Effectiveness of Franchise
Exhibitions in the United Kingdom,
(Chapman, Mills & Stanworth), 1997
12 Franchising: Breaking Into European
Union Markets, (Stirland, Stanworth,
Purdy & Brodie), 1998

Web versions published online December 13 Succeeding As A Franchisor,

2010, via http://www.scribd.com/:
1 The Blenheim/University of
Westminster Franchise Survey:
Spring 1993, (Stanworth & Purdy),
1993
2 Improving Small Business Survival
Rates via Franchising: The Role of the
Banks in Europe, (Stanworth & Stern),
1993
3 Targeting Potential Franchisees:
Industry Sector Backgrounds and
Declared Areas of Interest, (Purdy &
Stanworth), 1994
(Stanworth & Purdy, published jointly
with Business Link London Central),
1998
14 Direct Selling: Its Location in a
Franchise Typology, (Brodie &
Stanworth), 1999
15 Unravelling the Evidence on
Franchise System Survivability,
(Stanworth, Purdy, English &
Willems), 1999
16 Survey: Professional Services For
Franchising In The U.K., (Stanworth &
Purdy), 2001

4 The Impact of Franchising on the

Development Prospects of Small &
Medium-sized Enterprises (SMEs) in
Europe, (Stanworth & Purdy), 1994

5 The Blenheim/University of
Westminster Franchise Survey: A
Comparison of UK and US Data,
(Stanworth, Kaufmann & Purdy), 1995

6 Developing a Diagnostic
Questionnaire as an Aid to Franchisee
Selection, (Stanworth), 1995

7 Franchising as a Source of
Technology-transfer to Developing
Economies, (Stanworth, Price, Porter,
Swabe & Gold), 1995

8 Aspects of Franchisee Recruitment,

(Macmillan), 1996

9 Business Format Franchising:

Innovation & Creativity or Replication
& Conformity ?, (Stanworth, Price,
Purdy, Zafiris & Gandolfo), 1996

International Franchise Research Centre Special Studies Series Papers 1-16 Web Versions 2010 p.2
HIGHLIGHTS
Our paper analyses the data drawn from 728
face-to-face interviews with individuals
attending franchise exhibitions held in London
(UK) and Washington D.C. (USA) during the
Spring of 1994.
■ Employment status - In both the UK and
the USA, half of those attending franchise
exhibitions have already had some
experience of self-employment. The
majority of these are currently self-
employed.
■ Business ownership - For those currently
owning their own business, the American
respondents own larger businesses than
their UK counterparts - 75% of Americans
have employees compared with only 60%
in the UK.
■ Investment potential - Those currently
owning their own businesses have the
greatest potential for investment in
franchising. In the UK sample, 33% of
those currently self-employed have an
investment potential of £50,000 or over,
compared with just 16% of those never
previously self-employed. A similar
difference emerges for the US, where 41%
of those currently self-employed have in
excess of $100,000 to invest, compared
with just 25% of those with no previous
self-employment experience.
■ Operational perceptions - Both the UK
and USA respondents feel that running a
franchised outlet is probably more like
running an independent business than a
managed outlet. Americans are more likely
than the British to feel this.
■ Franchisee recruitment - respondents
without previous self-employment
experience are most strongly attracted to
franchising by the goal of 'independence'.
But those currently owning their own
businesses are most attracted by the
appeal of 'proven business formula'
Thus, franchising appeals in different ways
to 2 separate groups of people and
franchisee recruitment marketing, to be
fully effective, needs to take account of
this.
International Franchise Research Centre - Special Studies Series Paper No.5
INTRODUCTION
The novel ingredient distinguishing franchising
from most other forms of business activity is
the symbiotic relationship of inter-dependence
existing between two legally distinct economic
entities. The close ties existing between
franchisor and franchisee (Spriggs and Nevin,
1994) have led to their relationship often being
described as a partnership or strategic
alliance (McIntyre, Young and Gilbert, 1994).
Nevertheless, there remains a distinct
separation between the parties. To
understand how and why this partnership is
created, a clear explication of the incentives
for each party is needed (Peterson and Dant,
1990).
Until now, research attempting to explain the
creation of franchise systems has usually
focused upon franchisor motivation and used
agency theory and transaction cost analysis.
This work has attempted to explain why firms
distribute their products or service offerings
through a franchised organisational
configuration (Oxenfeldt and Kelly, 1968;
Caves and Murphy, 1976; Rubin, 1978;
Williamson, 1979; Brickley and Dark, 1987;
Martin, 1988; Norton, 1988; Lal, 1990,
Lafontaine, 1992; Heide, 1994; Boyle, 1994).
The motivation of individuals who join
franchise systems, on the other hand, and the
antecedents which predict which individuals
are likely to be interested in becoming
franchisees, have received relatively little
attention (Bradach and Kaufmann, 1988;
Peterson and Dant, 1990). Further, the issue
of changes in franchisee motives over time,
though widely recognised and frequently
discussed at an anecdotal level by
franchisors, remains still largely unexplored in
empirical research terms. The factors which
motivate groups of individuals to embark upon
some kind of self-employment, may not be the
same as those which motivate retention or
subsequent exit from it (Bogenhold and
Staber, 1993; Granger, Stanworth and
Stanworth, 1995).
In this paper, we begin the process of
examining reasons why individuals become
franchisees instead of employees or
independent operators. We report on the
results of co-ordinated empirical work
1
conducted in the UK and the US during the
Spring of 1994. This research focused on the
motivation and decision-making processes of
individuals at the time of considering whether
to take a franchise and therefore has
advantages over earlier research in the field
which had to rely on hindsight (Fischhoff,
1975; Peterson and Dant, 1990).
UNDERSTANDING FRANCHISEE MOTIVATION
The need is now pressing for advances in our
knowledge and understanding of the socio-
economic and behavioural parameters
underlying the concept of franchising.
Peterson and Dant (1990:46) have made the
observation that:
"Despite an abundance of writings
delineating the advantages of the
franchising format ... no theoretical
framework has been proposed for
organising these advantages into a
taxonomy or a hierarchical typology."
The notion that franchisees (actual or
potential) are likely to act and think as a totally
homogeneous group appears overly
simplistic, given what Peterson and Dant
(1990:48) describe as the "large number of
situational, personality and economic corre-
lates ... likely to influence such perceptions".
The underlying theoretical perspective
adopted in our analysis is that of an 'Action
Frame of Reference' in the broad tradition of
sociologists such as Weber, Parsons, Mead,
Goffman, Turner and Silverman. This rejects
positivistic explanations of human behaviour
as being determined by external and
constraining factors and is concerned with
understanding action rather than with merely
observing behaviour (Rose, 1962; Silverman,
1970).
In addition to rejecting positivist views of
social behaviour, an 'Action' framework also
rejects the adoption of a psychological view, in
that it is not limited to specific individuals. For
the necessary level of generality for a social
view of franchisee motivation to emerge, it
must embrace the likelihood of tendencies for
certain combinations of meanings and actions
to recur with some regularity (Stanworth and
Curran, 1976).
International Franchise Research Centre - Special Studies Series Paper No.5
A sociological Action Frame of Reference can
engage actors' definitions of situations with
sufficient degrees of generality as to link
subjective meanings with observable
outcomes. Thus, for example, key differences
such as prior experiences of self-employment
can be investigated as sets of meanings likely
to influence future actions and motivational
patterns.
Silverman (1970:127) has stressed the
importance of an accommodation of the
notion that:
"While society defines man, man in
turn defines society. Particular
constellations of meaning are only
sustained by continual reaffirmation in
everyday actions ... Through their
interactions men also modify, change
and transform social meanings."
Thus, whilst humans may, at their peril, totally
ignore well established and sanctioned
patterns of culturally transmitted expectations
as to what currently constitutes conformist
behaviour, few social roles are pre-defined in
a totally comprehensive sense so as to totally
exclude the possibility for individual actors
bringing their own meanings, aspirations and
goals to bear on situations in which they find
themselves. Thus, the goal of a small
business, which may be defined in structural-
functionalist terms as simply that of 'profit',
may be elaborated and re-defined by a key
actor such as the owner-manager. 'Profit' may
come to be defined as an organisational
'need', which merely requires satisfaction as a
condition of organisational survival, and may
be elaborated by the key actor's personal
goals, such as 'independence', 'lifestyle', 'peer
group recognition', etc. The latter may
possess the potential to either harmonise or
conflict with the goal of 'profit' maximisation.
PREVIOUS WORK IN THE FIELD
Peterson and Dant (1990) were hard pressed
to find any meaningful research results
addressing the issue of motives attracting
aspiring small business people to becoming
franchisees. In the event, they found 3 pieces
of work which provided at least some data for
existing franchisees, though not potential
franchisees. Two of these pieces of work
2
originated from the University of Westminster
in England (Stanworth, 1977 and Hough,
1986). However, since at least the latter
studies could be described as early pioneering
contributions to our knowledge of this area of
franchising, and because their principal focus
was essentially everyday franchisor-
franchisee relations (Stanworth, Curran &
Hough, 1984), the issue of perceived
hierarchies of franchise advantages was
largely peripheral. However, the research
conducted at the University of Westminster in
England (Stanworth, 1984), like that of
Peterson and Dant (1990) in America,
confirmed that, even within a given franchise,
expectations and patterns of motivation can
vary considerably.
The third study (Knight, 1986) involved, once
again, actual franchisees and did not
introduce the dynamic element
accommodating changes over time to the
extent that Peterson and Dant suggest as
being necessary.
Peterson and Dant have experienced some
success in structuring such variations in
motives into causal patterns. What is
particularly interesting here is the depiction of
both pre- and post-entry socio-economic
factors functioning in a manner likely to
influence operational patterns of motivation
and behaviour. Peterson and Dant conducted
a mailed survey of franchisees in a single US
franchise company and their resulting data
provided general support for their predictions
that the influence of:
a) self-employment experience prior to taking
a franchise,
b) the number of years spent operating as a
franchisee within the current franchise,
and
c) the level of sales achieved as a franchisee
would act to influence perceptions of the
franchise and patterns of franchisee
motivation.
Positive values on any of these parameters
were seen as increasing perceptions of
personal power and independence, thus
reducing perceptions of dependence on the
International Franchise Research Centre - Special Studies Series Paper No.5
franchisor and, finally, reducing the salience
of certain advantages of franchise
membership:
"... as the level of the franchise
relationship and the sales levels of
franchisees increase, different
advantages may need to be stressed
to keep franchisee motivations high."
(Peterson and Dant, 1990: 59)
Thus, Peterson and Dant hint strongly in the
direction of the likely existence of a
hierarchical typology of franchisee motives.
They identify the biggest single limitation of
their own study (in common with previous
comparable studies) as the absence from
their sample of potential franchisees and a
resulting reliance on hindsight by actual
franchisees. They attribute this to "the difficul-
ties of locating potential franchisees". In the
light of this, it was decided to address the
issue empirically using samples of potential
franchisees both in the UK and the US as a
bridgehead towards the achievement of a
wider understanding of the issue of franchisee
motivation, and changes over time.
SAMPLE RECRUITMENT
Once the importance of studying potential
franchisees had been established at a general
level, the question of a specific methodology
then arose. The issue of accurately identifying
a sample of potential franchisees was a
challenging one. One option would have been
to run a series of advertisements in Business
Opportunities newspapers and magazines.
This, however, would have proved very costly
and respondents might have been highly self-
selecting and non-typical.
Another strategy would have been to request
editors of franchise magazines to allow
access to their subscription lists. However,
these magazines tended to be distributed
largely through newsagents rather than
directly through subscription lists, thereby
undermining their use for research designed
to locate a population of potential franchisees.
Finally, a third available option was
operationalised - that of collaboration with the
leading UK and US franchise exhibition
organiser. Regular franchise exhibitions are
3
 Fig 1 - EMPLOYMENT PROFILE OF INTERVIEWEES

50%
50%

50%

24% 40%

26% 30% Proportion

20% of Sample
31%
20% UK n = 316
Never Self-employed US n = 412
10%
Formerly Self-employed (but not presently) 0%

U.S.
Currently Self-employed

U.K.

now run in many countries and most of these
are staged by a single (British owned)
company - Blenheim Exhibitions and
Conferences Limited.
After successfully negotiating collaboration
with the exhibition organisers, data were
gathered via face-to-face interviews at
national franchise exhibitions in London and
Washington D.C. in the Spring of 1994, as
part of a collaborative venture involving the
Universities of Westminster (England) and
Georgia State (USA).
The charging of non-trivial entrance fees by
the organisers, and the travelling of quite
considerable distances by many attending
these exhibitions, indicates that the act of
attendance is not an action undertaken lightly.
In short, there is no better access point in
either the UK or the US for research into
potential franchisees.
The analysis which follows is based upon a
total of 728 usable representative in-depth
one-to-one interviews. Three hundred and
sixteen were drawn from amongst UK
attendees and 412 from amongst their US
counterparts.
EMPLOYMENT PROFILE OF INTERVIEWEES
The data presented below cross-tabulates
several issues against 3 different employment
statuses:
■ no prior experience of self-employment;
■ previously self-employed (but not
currently), and,
■ currently self-employed.
Figure 1 shows that half (50%) of the UK
sample were either currently self-employed
(31%) at the time of interview or had been
previously self-employed at some time in the
past (20%). This shows beyond any
reasonable doubt that experience of
independent self-employment (current or
past) is a key variable indicating those most
likely to attend a franchise exhibition and
consider the purchase of a franchise. These
figures correspond closely with those for the
US sample where 50% were either currently
self-employed (26%) or had been previously
self-employed at some time in the past (24%).
It could be hypothesised that respondents
who are already self-employed attend the
exhibition in order merely to research ideas for

International Franchise Research Centre - Special Studies Series Paper No.5 4

 Fig 2 History of previous self-employment amongst franchisees
and their fathers
Franchisees Fathers Both Franchisee
FRANCHISE PSE PSE or Father
PSE
Home Tune Mobile Car Tuning 23.9% 35.2% 7.0% 52.1%
Prontaprint Fast Printing Services 32.8% 35.9% 15.6% 53.1%
Servowarm Domestic Heating 53.1% 37.5% 25.0% 65.6%
Installation & Servicing
Ziebart Vehicle Rust-Proofing 33.3% 43.8% 18.8% 58.3%
ServiceMaster Cleaning Services 16.1% 16.1% 0.0% 32.2%
Dyno-Rod Drain Cleaning & 35.5% 25.8% 12.0% 48.4%
Hygiene Services
Wimpy Fast Food 48.1% 44.2% 19.2% 73.1%

PSE = Previously Self-Employed

their own businesses. However, we do know Blythe, 1989).

with some certainty that franchise companies
recruit heavily from the ranks of people with
experience of their own independent
businesses.
Previous research in the US (Ozanne and
Hunt, 1971) and in the UK (Stanworth, 1977
and Hough, 1986) on actual franchisees, has
pointed quite firmly to the relatively high
proportion with prior experience of self-
employment (Figure 2 above). The research
conducted at the University of Westminster
showed an aggregate figure for respondents
with previous first-hand experience of self-
employment of approximately 35% and a
figure for those with either direct experience
and/or second-hand exposure via one or
more parents of 55%. Other British sources
suggest a similar picture. For instance, the
National Westminster Bank/British Franchise
Association surveys of 1990 and 1991 found
36% and 38% of franchisees respectively to
have had previous experience of self-
employment. More recent research by
Felstead (1993:87) has revealed a figure of
32%.
The frequency with which franchisees are
seen to emerge from a social strata with a
previous history of links with self-employment
strongly reinforces the suggestion that many
see franchising first and foremost as a
'business opportunity', since those going into
more conventional forms of self-employment
tend also to have similar family and personal
histories (Stanworth, Stanworth, Granger and
CHOICE OF LEGAL FORM AND SECTOR
Respondents were asked, in the event of their
becoming involved in a new small business
venture in the future, which element of the
decision-making process would take
precedence - that concerning the legal form of
the business activity (i.e., the decision to take
a franchise business vs. a fully independent
one) - or, alternatively, that concerning the
particular business sector. Seventy-nine per
cent of the UK sample and 76% of the US
sample said that the decision on legal form
was less important than the decision on
sector. This data would appear to add further
weight to the notion that entering franchising
and embarking upon a venture to set up a
small independent business are very much
part of the same decision-making process.
Respondents were then asked whether their
choice of a franchise, if indeed they selected
finally to buy one, would be confined to the
sector/s in which they had previous work
experience and training. The responses were
again very similar across national boundaries,
with 52% in both countries saying that they
would prefer a franchise outside the opera-
tional area of their own previous experience.
Analysis has revealed that experience or
absence of previous self-employment made
no discernible difference here.
Franchisors have often gone on record as
preferring potential franchisees from outside

International Franchise Research Centre - Special Studies Series Paper No.5 5

 Fig 3 - SIZE OF RESPONDENTS' CURRENT BUSINESSES

41%

25%
50%
22%
23%
40%
18%
30% Proportion
Just you working by yourself 13% 26% of Sub-sample
Self plus 1-2 full-time staff 9% 20% UK n = 98
US n = 151
9%
Self plus 3-5 full-time staff 10%
13%
Self plus 6-10 full-time staff 0%

Self plus >10 full-time staff U.S.

U.K.

the operational line of the franchise in Strong links between sector of origin and
question (Felstead 1994:85). The stated sector of possible destination did show up in
reasons for such a preference are that fields such as business services, food, retail,
'outsiders' are less likely to introduce pre- building, automotives and printing and it is
conceived ideas or 'bad habits', which might intended subsequently to undertake follow-up
interfere with the franchisor's training research in order to test stated preferences
programme or 'contaminate' other against actual choices.
franchisees. Although this frequently
verbalised reasoning may be fully justified, it SIZES OF EXISTING BUSINESSES
is not without its power and motivational
dimensions. In the short term, franchisees Given the interest shown in franchising by
from outside the operational field of the those already currently in business, it was
franchise would appear more likely to be decided to collect data on the size of their
motivated to defer to the franchisor's current businesses. The principal intention
knowledge and authority than those with prior here was to investigate whether many of this
experience in the field. sub-sample were essentially just struggling
self-employed rather than small business
In the longer term, however, as franchisees owner-managers. The results (Figure 3) show
find themselves paying ever increasing that the majority did in fact employ staff and
royalties in line with increasing sales, and as that these were more strongly represented in
their level of reliance upon the expertise of the this sample than in the small business
franchisor in day-to-day problem-solving population as a whole, where a majority are
tends to decline, then the franchisor's power- without employees (Department of Trade and
base relies increasingly upon (a) the Industry, 1994).
marketing power of the franchise tradename
and (b) the fact that the franchisee has gained It is notable here that the US respondents
access to his/her knowledge and were running larger businesses than their UK
understanding of the field of operation counterparts. US respondents generally had
exclusively via the franchisor. more money to invest than their UK
counterparts and, right across both samples,

International Franchise Research Centre - Special Studies Series Paper No.5 6

currently self-employed respondents were
best placed financially. For instance, in the UK
sample, respondents with in excess of
£50,000 investment potential represented
33% of the currently self-employed sub-
sample compared to 19% amongst the
previously self-employed and just 16%
amongst those never previously self-
employed. In contrast, for the US sample, with
an investment availablity in excess of
$100,000 (the closest comparable cut-off
point), we found comparable figures of 41%,
36% and 25%, i.e., the same ordering but
substantially larger percentages.
TOWARDS A MODEL OF FRANCHISEE MOTIVATION
Respondents were questioned on their views
of franchising and asked to select the
statement most closely fitting their perception
of a franchise in terms of independence, from
the following:
Running a franchised business/outlet is
probably very much like:
1 Running your own independent small
business
2 Running your own independent small
business but with more strings attached
3 Half way between running your own
independent small business and running a
managed outlet of a large company
4 Like running a managed outlet of a large
company but with fewer strings attached
5 Like running a managed outlet of a large
company
The results from the UK and US are, overall,
quite similar (Figures 4a and 4b). For
instance, in all 3 employment status cate-
gories (never, previously, and currently self-
employed), between 89% and 93% selected
one of the first 3 statement with US
respondents more likely than their UK
counterparts to select one of the first two.
Looking at respondents who selected the very
first statement, in both national samples,
those without any previous self-employment
experience were the most weakly
represented. A possible explanation here
might be that, without any previous
experience, they were the most acutely aware
of an initial dependence upon the franchisor.
International Franchise Research Centre - Special Studies Series Paper No.5
Knight (1984), in the American literature, has
placed the franchise on a continuum of
independence "exactly mid-way" between
"solo independent entrepreneurs" and "large
corporate managers" (Bradach and Kaufmann
(1988). If Knight is indeed correct, then what
we are observing here is the subjective reality
of the actors involved rather than the objective
reality of the outside observer.
In Britain, Rainbird (1991) has highlighted the
power of the actor's subjective perception in
prevailing over even the starkest of objective
realities. However, this is not to say that
franchisees' perceptions of autonomy are of
necessity subjectively led, but to acknowledge
that they can be a factor at play.
Respondent's perceptions here certainly
accord quite closely with the kind of claims
typically made in franchisor advertising:
"..secure your own future ... You'll be in
control of your own business" (Business
Franchise Magazine, September 1994).
Interviewees were subsequently presented
with a list of 9 main reasons why people might
be motivated to buy a franchise and asked to
indicate which was the most important to
them. This list included the motive of
'independence', probed above, and was,
additionally, made up of motives identified in
previous research in both the UK and US
(Peterson and Dant, 1990, Izraeli, 1971,
Stanworth, 1977, Hough, 1986, Knight, 1986,
Stanworth and Purdy, 1993). Very distinct
sub-sample differences appeared here, as
can be seen from Figures 5a and 5b.
Of the nine different options offered to
interviewees, all were selected by one or more
respondents. However, 83% of the UK
respondents and 76% of the US respondents
selected one of four options: 'A Proven
Business System'; 'Independence/ Chance to
be Your Own Boss'; 'A Known Trade-Name'
and 'Reduced Risk'. In each case, the
ordering of selection was identical except for
the US sample selecting 'Reduced Risk'
slightly more frequently than 'A Known Trade-
Name'.
The differences in the selections made by our
3 main sub-groups were substantial and these
differences were largely repeated across the
two national samples. Those who had never
7
 Fig 4a - PERCEPTIONS OF RUNNING A FRANCHISE (U.K.):
BY EMPLOYMENT STATUS

39%
41% 45%
40%
38% 35%
35%
Proportion
34% 30% of Sample/
25% Sub-sample
20% (Employment
24% 16% 15%
1% status)
Managed outlet 5%
10% n = 316
21%
Managed outlet, but fewer strings 5%
0%
Independent small business/Managed outlet
Independent small business + strings Never
Ex S/Emp
Independent small business
Now S/Emp
ALL (UK) S/Emp

Fig 4b - PERCEPTIONS OF RUNNING A FRANCHISE (U.S.):

BY EMPLOYMENT STATUS

38%
40%

35% 33% 35%

31% 36% 30% Proportion
25% of Sample/
20% Sub-sample
(Employment
4% 25% 15%
status)
Managed outlet 5% 10% n = 412
Managed outlet, but fewer strings 5%
0%
Independent small business/Managed outlet
Independent small business + strings Never
Ex S/Emp
Independent small business
Now S/Emp
ALL (US) S/Emp

International Franchise Research Centre - Special Studies Series Paper No.5 8

 Fig 5a - MAIN APPEAL OF FRANCHISING (U.K.):
BY EMPLOYMENT STATUS

41%

33% 29%
45%
30%
40%
28%
19% 35%
Proportion
30%
of Sample/
13% 25%
18% Sub-sample
20% (Employment
A proven business system 15% status)
10% n = 316
Independence/chance to be your own boss
7%
A known trade name 5%
5% 0%
Reduced risk
On-going support 5% Never
Good income
Ex S/Emp
Now S/Emp
ALL S/Emp
(UK)

Fig 5b - MAIN APPEAL OF FRANCHISING (U.S.):

BY EMPLOYMENT STATUS

35%
33%

27% 28%
22% 40%
26%
26% 35%
30%
Proportion
12% 25% of Sample/
20% Sub-sample
(Employment
11% 15%
A proven business system 13% status)
10% n = 340
Independence/chance to be your own boss
A known trade name
5%

Reduced risk 4% 0%
7%
On-going support Never
Good income
Ex S/Emp
Now S/Emp
ALL S/Emp
(US)

International Franchise Research Centre - Special Studies Series Paper No.5 9

previously achieved self-employed status
opted most strongly for 'Independence ...'
(42% of the UK sample and 33% of the US
sample) ahead of a 'Proven Business System'
(28% and 22%, respectively). By way of
marked contrast, those currently self-
employed opted most strongly for the
economic security of a 'Proven Business
System' (33% of the UK sample and 27% of
the US sample) with 'Independence ...' falling
away into third place (13% and 12%,
respectively). Those who had been previously
self-employed but were currently back in the
wider labour market were very much in the
middle, opting firstly for 'Proven Business
System' (29% UK and 35% US) with
'Independence ...' holding up reasonably
strongly at 19% in the UK and 28% in the US.
The attraction of 'Independence ...' to those
with no previous experience of self-
employment accords with a whole host of
previous research into conventional small
business start-ups (reviewed in Stanworth
and Gray 1991: 151-177), indicating that
buying a franchise and starting a conventional
small business are, in fact, acts governed by
very much the same decision-making
process.
Overall, we have the beginnings of a model of
franchisee motivation here, based on a
process of goal replacement, as earlier goals
in a motivational hierarchy become partially of
fully realised. This process can be expected to
continue throughout the career of any
individual franchisee. The first illustrations of
this process are illustrated in the movement
away from 'Independence' (and the essentially
allied intrinsic satisfactions it involves)
towards goals more associated with economic
security: 'a proven business formula' and
'known trade name'.
Franchisors frequently acknowledge the
changing developmental nature of franchisee
motivation and commonly counsel franchisees
in an attempt to focus and direct their
motivation. In the more advanced stages of a
franchisee's career, it is not uncommon, if the
franchisee is economically successful, for his/
her outlet to grow to an extent facilitating a
movement away from the involvement in
routine operational tasks towards the
development of a managerial team and a
International Franchise Research Centre - Special Studies Series Paper No.5
more 'delegating' managerial style. This
movement away from a 'worker-manager' role
towards a more specialist 'managerial' role,
facilitates an increasing likelihood of peer
recognition via such means as the
achievement of various performance awards
for excellence (e.g., 'franchisee of the year') or
election/selection to key posts in franchisee
associations and allied 'opinion leader'
positions within the franchise.
This internal peer group recognition may
subsequently extend beyond the boundaries
of the franchise in question as the franchisee
emerges into a more regional, or in some
cases national, arena. Involvement in national
franchisee award schemes and opportunities
to join extra-organisational bodies and public
platforms, tend to arise in proportion to the
franchisee's level of business success. Lest it
should be thought that the opportunities for
business growth in a franchise are strictly
limited to within the boundaries of a local
market serviced by a single outlet, it should be
remembered that successful franchisees
often become multiple outlet owners
(Bradach, 1994).
AN AGENDA FOR FUTURE RESEARCH
It has now been quite firmly established that
franchisees are definitely not a totally
homogeneous grouping where motivational
patterns are concerned. However, nor are
they randomly heterogeneous. The available
evidence suggests that patterns are likely to
occur with a degree of regularity necessary to
underpin a social theory of motivation in this
field of business activity. What is required now
is further research in order to map out such a
theory in greater detail.
Resource expediencies commonly steer
researchers away from intellectually preferred
strategies and in the direction of short-term
cost-effective ones. This is not to denigrate
what are often valuable contributions to
academic debates, but to underline the
essentially incremental nature of
improvements in our understanding of
organisational issues.
An ideal strategy for continuing research on
this topic in the future might involve several
different franchise sectors, for example, fast
10
food, printing services, parcel despatch and
delivery, a home-based franchise such as
carpet and upholstery cleaning and, finally, an
example of a mature industry which has
'converted' to the franchise format in response
to market shrinkage and dwindling profit
margins - such as footwear or domestic milk
delivery in England (Davidson, 1994).
In each of these sectors, two 'matched'
franchises might be studied in an attempt to
check out consistency and separate out
sector-specific influences from those based
on more idiosyncratic influences. Obviously,
also, sample sizes within each franchise
business would require to be large enough to
survive initial non-response rates and the
demands of subsequent sub-sample dis-
aggregation.
The demanding scale of such a programme
might then ideally be compounded further by
a longitudinal element tracking franchisees
from early potential franchisee status through
to maturity - possibly scanning a ten-year
post-entry period. Given the financial and
administrative burdens involved in such a
programme, plus the uncertainty and
necessary opportunism involved in any
academic career, it is unlikely that this 'ideal'
research programme will ever be feasible.
Nonetheless, the sheer discipline of drawing
up such an agenda for research can serve a
useful 'mapping' function with the potential for
assisting the segmentation and linking of
research projects.
The most difficult element of the above
agenda to operationalise is longitudinal
tracking, and cross-sectional analysis is likely
to emerge as the principal feasible expedient.
That established, the remainder of the
programme is essentially attainable with
cross-cultural comparisons a growing
possibility.
International Franchise Research Centre - Special Studies Series Paper No.5
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International Franchise Research Centre - Special Studies Series Paper No.5 13

AUTHORS
John Stanworth is the director of the
International Franchise Research Centre
and has been engaged in research into
franchising since the mid-1970s. He also
leads the Future of Work Research Group,
based at the University of Westminster, which
has a record of specialist research in
Teleworking, Small Business Development
and Human Resource Management. Studies
have been undertaken for many clients,
including The Department of Trade &
Industry, The Department for Education and
The Economic & Social Research Council.
Patrick Kaufmann is an Associate Professor
of Marketing in the College of Business
Administration at the Georgia State
University in Atlanta, USA. He is a former
Boston lawyer who taught at the Harvard
University Business School from 1985-1991.
He is recognised as a leading American
authority on franchising and was guest
speaker at the 1994 Annual Franchise
Strategy Seminar, convened by the
International Franchise Research Centre,
University of Westminster, in association with
the Manchester Business School.
David Purdy is a researcher supporting the
Future of Work Research Group. He has
specialised in small business research since
1985, and publications include authorship of
'Risk Capital for Small Firms', commissioned
by the Small Business Research Trust. He
has also co-authored studies investigating
Small Business Management Development
and Teleworking.
The authors wish to express their gratitude to
Blenheim Group plc, London, for their co-
operation in publishing the survey findings.
International Franchise Research Centre - Special Studies Series Paper No.5
INTERNATIONAL FRANCHISE RESEARCH CENTRE
The International Franchise Research Centre
(I.F.R.C.) is committed to improving the
understanding of franchising. This is achieved
by the publication of impartial research and by
the encouragement of informed debate.
Membership is suitable for anyone with an
interest in franchising and further details are
available from the address on the rear cover.
SPECIAL STUDIES SERIES
Papers in the Special Studies Series are
supplied free of charge to I.F.R.C. members
and are published a minimum of four times a
year. They report upon a range of issues
which are felt to be of interest to the
franchising community. Subject matter
includes the findings of surveys of franchisors,
franchisees, and potential franchisees, and
also special interest matters, such as finance
for franchising.
No.1 The Blenheim/University of
Westminster Franchise Survey:
Spring 1993
No.2 Improving Small Business Survival
Rates via Franchising: The Role of the
Banks in Europe
No.3 Targetting Potential Franchisees:
Industry Sector Backgrounds and
Declared Areas of Interest
No.4 The Impact of Franchising on the
Development Prospects of Small &
Medium-sized Enterprises (SMEs) in
Europe
14