Edited by Tony Dundon and Adrian Wilkinson
Chapter 6: Determinants of human resource management strategy in a franchise
There are some different – and interesting – characteristics about HRM in franchises that make for a unique case study. Franchises straddle contrasting business types, and hence, their approach to managing people is distinctive. Franchises systems are managed by a ‘franchisor’ (the owner of the brand, business systems and intellectual property), and supported by a Corporate Office that generally operates like a large business. The Corporate Office maintains functions like marketing, finance, IT, operations, site development, and sometimes – HRM. Often, the franchisor also owns and manages corporate ‘units’ (stores) whose employees are legally employed by the franchisor. Other units are owned and managed by ‘franchisees’, essentially independent business people who purchase the rights to use the franchisor’s trademarked name and business model to sell a product or service in their own unit. Typically, these franchised units are small businesses operating in the framework of a large business system.
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