The role of the petroleum franchise ecosystem actors in providing business support for HDSA franchisees

Abstract

Petroleum retail franchising plays a significant role in the South African economy. Despite the implementation of government policy regimes, this continues to be a complex industry for historically disadvantaged South Africans (HDSA) to navigate. To understand the business support required for HDSA franchisees, the study adapts the entrepreneurial ecosystem model through the theoretical lens of Stewardship theory, positing that a collaborative stance between the franchisor and franchisee is more suitable for long-term survival. The qualitative study was conducted with 19 HDSA franchisees in South Africa (SA) through semi-structured interviews. Thematic analysis revealed four main business support themes required by HDSA franchisees, which are (1) Franchisor Engagement, (2) Preparation, (3) Business Model Adaptability and (4) Employee Transition. Although the findings align with existing literature on franchise relationships, this study offers new insights by exploring the distinct South African context, particularly regarding employee transition dynamics within franchise units. Notably, the research reveals that contrary to the classical view of franchising as a low-risk entrepreneurial path, HDSA franchisees often face significant challenges. This study enriches the literature by highlighting the unique complexities of employee transitions during ownership changes in SA, identifying a critical gap in the current franchising research and practice. The franchise ecosystem approach has provided clarity on the key actors and how their roles can be leveraged to enhance the petroleum franchising sector.