Identifying the franchisee profiles franchisors prefer

Abstract

This study identifies the franchisee profiles that franchisors prefer. Specifically, the goals of this study are: (1) to identify the characteristics that form the franchisee profile preferred by the franchisors operating in the Spanish market and (2) to contrast diverse hypotheses related to this profile. These hypotheses are related to the ideal franchisee, sector, financial level, number of franchisee units and age of franchisors. Criteria that franchisors look for in potential franchisees are ranked by importance. The value of the paper is significant as it provides a practical framework for franchisors for the selection process of franchisees when choosing from a group of potential franchisees. The franchisee profile was obtained using conjoint analysis, which is a decomposition methodology that is rarely used in this field.