Franchise branding: an organizational identity perspective

Abstract

Despite the call for increased theoretical diversity in franchising research, the incorporation of organizational theory into this literature has been minimal. In response, we examine how aspects of organizational identity are represented in franchisee recruitment Web sites. We develop the concept of franchise branding to understand how franchisors position franchise opportunities to attract potential franchisees. We find that firms in the Franchise 500 use more language associated with market orientation, entrepreneurial orientation, and charismatic rhetoric when compared to a sample of lower-performing franchises. We also examine the impact of franchisor size and age to examine how liabilities of size and newness impact language use. We find that larger firms tend to use more rhetoric but detect no significant differences based on age. We conclude by discussing future possibilities for incorporating additional theoretical perspectives into the franchising literature.