The franchise partner selection process and implications for India

Abstract

Purpose The purpose of this paper is to provide insights on the franchise partner recruitment process and decision‐making criteria used to select partners. It aims to investigate the process and parameters considered by franchisees in selecting potential international hotel organizations as partners. The success of such choices influences growth of the firms and consequently affecting industry and economy. Design/methodology/approach In‐depth semi‐structured interviews with owners, directors, vice presidents and mangers of the franchisee organizations were deployed. Findings Findings suggest that partner selection is a multidimensional activity involving several key stages. Indian franchisees use profitability, brand name, operations support as decision‐making criteria while selecting their partners. Practical implications Differences occur at various stages of partner selection. A proper understanding of partner selection dynamics and careful consideration of criteria's like culture, organizational values, pricing, experience, etc. would result in a better building of relationship. Originality/value The paper highlights the complexity of the process and the decision‐making criteria from a franchisee's perspective. From a practical perspective, it could be of value to future and existing international hotel chains using franchising as a mode of expansion.

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