How to select franchisees: A model proposal

Abstract

The selection of franchisees is a key decision for a franchisor and the success of a franchising business. The aim of this research is to design a model proposal with which franchisors may objectively evaluate their potential franchisees in a selection process and reduce any likelihood of error in their final choice. To do so, we apply the Analytic Hierarchy Process methodology, which yields a model proposal as its main result that prioritizes the attitude of the applicant over and above all other criteria that may be taken into account when selecting a chain franchisee. Franchisors can choose to apply the model with the proposed variables, thereby minimizing any error in their candidate selection procedures. They can also adapt the model proposal to virtually any other variables that are central to the spirit of their franchising businesses. The model will help any franchisor to refine its franchisee selection procedure.