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Rozenn Perrigot

With promising projected growth in terms of economic indicators and population, African countries have become attractive to both non-African and African franchisors. This chapter’s objective is to initiate research on franchising in Africa by looking at concrete examples of international and African franchise businesses in various African countries with a special focus on South Africa and Egypt. This chapter adds to the literature on franchising in emerging countries and, more specifically, to the limited stream dealing with franchising in Africa. It also contributes to the practice by providing an overview of the franchise business in South Africa and Egypt and by highlighting the opportunities and challenges for both international and African franchisors.

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Edited by Frank Hoy, Rozenn Perrigot and Andrew Terry

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Edited by Frank Hoy, Rozenn Perrigot and Andrew Terry

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Frank Hoy, Rozenn Perrigot and Andrew Terry

This chapter begins with an overview of the significant role that the franchise model plays in the global economy. Despite the number of enterprises, volume of revenues generated, and jobs created, franchising has received relatively little attention in scholarly publications and in educational programmes. Prior literature reviews are cited, highlighting subjects that have received some attention. Brief previews of the other chapters in the Handbook are provided. The chapter and the entire Handbook are offered as encouragement for further research into franchising.

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Rozenn Perrigot, Guy Basset and Gérard Cliquet

The continued creation of websites in the franchise sector is inevitable, no matter whether they are informational or transactional websites. However, with the presence of these websites, there may be a risk that activities in the franchisees’ stores will decrease. Franchisors need to be attentive to the survival of their chains, to the consistency and uniformity of their chains and to potential conflicts with their franchisees or among their franchisees. This chapter deals with the development of websites within franchise chains in Europe. After briefly defining the legal regulations set by the European Union, the chapter considers the use of the Internet as a new marketing channel by studying the reasons why franchise chains need to be present on the Internet and under what conditions. Then the chapter discusses potential issues related to transactional websites opened by franchisors, e.g., encroachment problems and transactional websites opened by franchisees. It examines some solutions adopted by various French franchise chains.

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Edited by Frank Hoy, Rozenn Perrigot and Andrew Terry

Franchising is one of the major engines of business expansion and job creation globally. The Handbook of Research on Franchising offers new insights into entrepreneurial behavior, organizational forms, regulation, internationalization, and other contemporary issues relating to this dynamic business strategy. The Handbook challenges both practitioners and scholars to give attention to the conclusions of scholarly research on this business model. Practitioners can benefit from the results of high quality scientific research, and scholars can find exciting opportunities for contributing to the body of knowledge of a subject that has not received sufficient attention in educational institutions.
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Andrew Terry, Cary Di Lernia and Rozenn Perrigot

The regulation of franchising presents real and significant challenges. Although most countries currently rely on underlying commercial laws of general application to all business activity to regulate their franchise sectors, there is a trend towards franchise-specific regulation to address the information and power imbalance that characterise the typical business format franchise relationship. While there is broad agreement that prior disclosure is the appropriate strategy to address the information imbalance, there is less consensus on the appropriate strategy to address the power imbalance. Good faith – an explicit obligation of most civil law jurisdictions, but not a principle of general application in common law jurisdictions – is increasingly proposed as an antidote to opportunistic conduct. This chapter addresses the development of good faith in civil law and common law jurisdictions and reviews current developments and research in relation to the efficacy of good faith as the appropriate tool to deliver equity and balance to the franchise relationship.