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Franchising in African markets: Motivations and challenges from a Sub‐Saharan African country perspective

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Department of Marketing and Entrepreneurship, University of Ghana Business School, University of Ghana, Legon, Ghana Central Business School, Central University, Accra, Ghana Correspondence Dr. Mahmoud A. Mahmoud, Department of Marketing… Click to show full abstract

Department of Marketing and Entrepreneurship, University of Ghana Business School, University of Ghana, Legon, Ghana Central Business School, Central University, Accra, Ghana Correspondence Dr. Mahmoud A. Mahmoud, Department of Marketing and Entrepreneurship, University of Ghana Business School, University of Ghana, Legon, Ghana. Email: [email protected] The purpose of this article is to explore and understand the motivations and challenges of franchising in an African economy. While interest in franchising is increasing in African markets, there is a paucity of research on franchising from the perspective of local African firms participating in these international relationships. The motivations and challenges of franchising from the perspective of African businesses have not been largely investigated so far. Using in-depth interviews, we allow motivations and challenges at play to emerge. Convenient and snowball sampling techniques were used for choosing the unit of analysis, which resulted in four respondent firms. A thematic approach was adopted for analyzing the data from the field. Support services, brand name, and franchisor's experience are identified to be the motivations for franchising. Financial assistance from the franchisor, demand, and competition also play a key role in an African firm's decision to franchise. Legal constraints and infrastructure constraints were the key challenges faced by franchisees in Ghana. The findings of this study may hold for franchisees in other African markets. However, contextual differences may be considered in the application of these findings.

Keywords: franchising african; ghana; university ghana; african markets; motivations challenges

Journal Title: Thunderbird International Business Review
Year Published: 2019

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