A Cross-Cultural Comparison of the Plural Forms in Franchise Networks: United States, France, and Brazil

Abstract

This paper explores the phenomenon of plural forms (i.e., the simultaneous coexistence of franchised and company-owned outlets, operationally, the proportion of company-owned units in franchise systems based on literature, in franchising across three countries from three continents, namely the United States, France, and Brazil in what is ostensibly the first cross-cultural comparison of its kind. Based on 2003 secondary data, we carry out a series of inferentially grounded analyses involving the plural forms phenomenon from an exploratory perspective. Though subsequently, comparative regression models are also evaluated using eight purported determinants of the use of the plural forms, the essential character of the paper remains essentially exploratory. The results show that the proportion of company-owned outlets is almost three times greater in France and Brazil as compared to the United States. We also found that in the U.S. sample, three of the eight predictors significantly predict the occurrence of plural forms (namely, average total required investment and cash liquidity requirement have a negative impact, and company age has a positive impact); the French model was not statistically significant, whereas in the Brazilian sample, two predictors influence the plural forms phenomenon (i.e., total network size has a positive significant effect and incidence of internationalization has a significant negative impact).

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