RT info:eu-repo/semantics/article
T1 Franchise fairs: A relevant signal in franchise choice in social activity
A1 Mastrangelo Silvera, Leonardo Martin
A1 Calderón Monge, Esther
A1 Huerta Zavala, Pilar Angélica
K1 Entrepreneurship
K1 Signals
K1 Price
K1 Franchising
K1 GMM
K1 Franchise fairs
K1 Comercio
K1 Commerce
AB Potential franchisees encounter difficulties in gaining knowledge about a franchise before embarking on their first start-up venture. For this reason, it is necessary to research which information signals help potential franchisees choose the franchise chains with which they wish to enter into business. Working within the framework of signaling theory, this study’s aim is to analyze the relationship between franchise choice and brand, price and participation in franchise fairs. The dynamic signaling model deployed to achieve the study´s aim draws on panel data methodology. This methodology allows us to analyze franchise chains over the period in which their parent franchises were using signaling to reveal information about their quality to potential franchisees. The results show that franchise fairs and up-front entry fees influence franchisee´s decisions. Therefore, it is concluded that potential franchisees prefer to garner information directly from franchise fairs, as opposed to heeding the other signals under study, and that when macroeconomic variables are exerting a strong influence on potential franchisees, up-front entry fees also constitute a signal that they consider. Finally, the managerial implications of the study are that franchise chains seeking franchisees should participate in franchise fairs to ensure that they are among the chosen franchises. Additionally, a franchisor should appropriately manage up-front entry fees as a signal, especially during periods of economic turmoil and recession.
PB University of Finance and Management in Warsaw
SN 2084-0845
YR 2016
FD 2016-09
LK http://hdl.handle.net/10259/9626
UL http://hdl.handle.net/10259/9626
LA eng
DS Repositorio Institucional de la Universidad de Burgos
RD 07-ene-2025