Franchisor Support and Brand Value Empowerment of Micro-Franchisees: A Brazilian Market Perspective
MELO, Pedro Lucas de Resende; CUNHA, Julio Araujo Carneiro ; TELLES, Renato
Journal Of Entrepreneurship In Emerging Economies
Purpose – The purpose of this paper is to understand the relationship between franchisee support and
brand value in micro-franchise chains. This study aims to understand the importance of value delivery in
support to the micro-franchisee aiming at increasing brand value.
Design/methodology/approach – The sample was composed of 148 micro-franchisees belonging to 70
chains located in Brazil. The questionnaire aimed to verify the franchisee’s degree of concordance with
the support and brand value provided by the franchisor through a Likert scale. The questionnaire structure
comprised of ten metrics associated with franchisee support, four metrics associated with the brand value
perception and four potentially intervenient metrics. A regression analysis was carried out to confirm
the results for the factor analysis, assuming that the three factors associated with support as independent
variables and the brand factor as a dependent variable.
Findings – The three factors related to franchisee support were found to be significant predictors of brand
value. Based on the values of the coefficients, it is possible to infer the positive nature of the association. An
increase in franchisee support leads to an increase in the franchisee perception about brand value. The positive
effect of training and franchisor’s support in prospection and installation improvement on the brand value
evaluation by franchisees was supported by the statistical analyses conducted.
Research limitations/implications – This research complements the studies on brand citizenship
behavior and franchisee brand commitment; the greater the support provided to the micro-franchisee, the
greater its commitment to the brand values of the chain. This contribution is critical because we deal with
micro-enterprises in a business environment with an intense resource scarcity. These aspects place
restrictions on the delivery of support and brand value in these franchise chains.
Practical implications – Structured support plans and greater approximation with franchisees seem to
be alternatives for this perception of value to be increased in micro-franchise chains. The attractiveness of a
micro-franchise chain can be enhanced if the franchisor is able to show to its potential micro-franchisees that
it offers adequate support for its business; and also for the capture of new micro-franchisees.