Direct Franchising as Business Model with Moderating Role of Managerial Skills and Education Level of Franchisee: Evidence from Franchisees of Karachi

Abstract

Franchising is a model for conducting business since mid 1800’s and now franchising is a prominent part of the economy and a central phenomenon in entrepreneurship. There is sufficient amount of literature available which exemplifies the reasons for operating through franchises rather than own outlets. But there is significant lacking of research which can describe factors responsible for franchisee’s motivation or factors which encourage entrepreneur to prefer franchise over own business or job. In addition to this most of the prior research work is from Western countries and there is minimal amount of research literature available from South Asian Perspective. Thus the purpose of this research is to highlight the importance of various factors which foster an entrepreneur to operate as a franchisee in the context of Pakistan. Therefore this research is immensely important in understanding of factors fostering preference of franchisee. Moreover this research is also beneficial for enhancement of literature and research work related to the topic in the context of Pakistan, Asia and other developing countries of the world.

Keywords: Franchise, Business Model, Franchisee, Preference, Entrepreneurs, Developing Countries and Business Failure