The Effects of E-Commerce on Franchising: Practical Implications and Models

Abstract

This study investigates the current state of e-commerce in franchising and how this area is affecting franchisee-franchisor relationships. Its main purpose is to investigate and identify viable e-commerce strategies that franchise networks can successfully implement and maintain. The data were gathered through a two-stage process that involved (1) semi-structured interviews with franchisors and (2) a moderated industry forum, where franchisors and industry experts openly discussed their strategies and concerns with respect to e-commerce. This was implemented through three-level coding using NVivo software. The first theme identified was the participation of franchisees in developing and executing the e-commerce strategy, the second was a broad theme around franchisee opinions and fears, and the third involved introducing and implementing an e-commerce strategy within an existing franchising model. Finally, an overarching model was created where all key concepts are interrelated and avenues for further research are explored.