Abstract:
This study explores performance differences between corporate owned and operated and franchised outlets in the Quick Service Restaurant industry. While studies have proven that there is a performance difference favouring franchisees, why the performance advantage occurs has not been explained. this study aims to explain why that performance phenomenon exists. Using the Resource-based View as a theoretical lens, the operational differences were assessed between both ownership types within the same franchise ecosystem where both operate the same operating model and franchisees enjoy a
performance advantage. Using qualitative data collected from twenty interviews, we identify six themes: franchisee motivation, franchisee empowerment and flexibility, manager focus, opportunity realization, corporate rigidity and tactical restaurant management that together act as a basket of resources that provide franchisees with a performance advantage. This study discusses the implications for franchise owners, corporate restaurant management and the industry in general including possible contributions to theory.
