Franchising: category issues, changing dynamics and competitiveness

Within a competitiveness perspective, the main purpose of this paper is to investigate and analyze franchise categories and changing profiles and trends of the franchising industry.

Based on data from The Franchising Handbook, the study investigates 1,464 franchisors in 67 franchise categories that encompass 445,314 franchisees. The work uses content analysis in the investigation of franchise categories.

The study finds that franchise categories tend to be diverse regarding their category issues, franchising fees, capital requirements, and category franchisees. The work also provides meaningful implications and future research directions.

The author believes that fast‐growing mid‐sized and newly formed franchisors may need to be included in the survey from the USA and other countries. The study's implications are that the franchising industry requires new business models regarding franchising fees, capital, and sales that are critical in maintaining companies' competitiveness.

Franchisors should pay attention to those fast‐growing franchise categories that may become available in the coming years.

Within the areas of changing franchising and franchise categories, this work provides useful findings for researchers as well as practitioners.