Determinants of franchising decision among selected Filipino franchisees

• Main Authors: Choi, Jamie Elody S., Jao, Joan T., Ong, Christine Marie D., Salvame, Ryan Carlo C., Yu, Realey C.
• Format: text
• Language: English
• Published: Animo Repository 2011
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/12126
• Institution: De La Salle University

Franchising has become a widely recognized business model nowadays due to the perceived success it has for both franchisors and franchisees. It has provided individuals, with or without business background, opportunities for self employment and investment. However, despite its success and implications to local business growth in the economy, little literature on franchising has been made in the context of Philippine franchise businesses. This study aimed to determine the factors that influenced the interest and decision of purchasing a franchise for both potential and existing franchisees. Using the Pearson correlation, OLS regression, and ANOVA, it was found that operational benefits provided by franchisors, advices from peers and management consultants positively influence the purchase intent of potential franchisees no longer hold true for existing franchisees with the underlying factor being the dissatisfaction in the franchisee-franchisor relationship. Through the results of the study we point out the importance of maintaining good relationship between franchisee and franchisors by providing continuous training support, franchisee empowerment and other franchise benefits by the franchisor. Franchisors can also collaborate with banks in creating franchise loans to franchisees. Potential franchisees, on the other hand, must manage expectations by thoroughly inquiring franchisors as well as consulting with experienced franchisees. Improvements in the legal aspects for the protection of key participants in the industry are also influential in strengthening the industry. The findings of this study provide influential propositions to franchisors, franchisees, and legal entities for the continuous development of the franchise industry for its elicited positive economic derivatives.