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Creating Franchised Businesses Through Franchisee Training Program — Empirical Evidence from a Follow-up Study

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Economics and Management of Networks

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

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Abstract

The Finnish franchisee training program was a unique training program since it was government financed and provided to prospective franchisees by a third party. The organizing parties were the Finnish Employment and Economic Development Centres and a private consultation company specialized in franchising. The training program aimed to find people interested in becoming franchisees and to give them the essential skills and knowledge a franchisee needs.

Since the mid-90s the number of franchises operating in Finland has been growing around 15% yearly and the growth is expected to continue in future. Nevertheless, franchisors have indicated difficulties in finding and recruiting franchisees, representing the most significant obstacle to growth. Franchisee training program served as a get-together venue for franchisors and people interested in buying a franchise. In total more than 200 trainees completed the ten programs held in 1999–2001. Those trainees comprise the initial sample of this follow-up study. The data was collected with phone-interviews and the usable data consisted of 143 responses i.e. 70 percent of the initial sample. The purpose of the study is to analyze the effectiveness of the franchisee training program as a part of the career decision-making process of the trainees. The study concentrates on those trainees who established a franchised business (n=24) or started or bought a standalone business (n=22) after the training. The results are interesting and encouraging — the impact of the training program was positively associated with becoming a franchisee or a stand-alone business owner. Moreover, a logistic regression analysis showed clearly that measures pertaining to effectiveness of the training program predicted becoming a franchisee.

The author would like to express gratitude to her academic advisor, Ph.D., docent Mika Tuunanen for his insightful comments on the prior version of the paper.

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  1. School of Business and Economics, University of Jyväskylä, P.O. Box 35, MaE-Building, FI-40014, Finland

    Jenni Torikka

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  1. IGR-IAE, University of Rennes 1, 11 rue J. Macé CS 70803, 35708, Rennes, Cedex 7, France

    Gérard Cliquet

  2. Faculty of Business and Information Technology, Department of Business and Management, University of Kuopio, Mikrokatu 1F, 70211, Kuopio, Finland

    Mika Tuunanen

  3. RSM Erasmus University, Burg.Oudlaan 50, Room T8-56, 3062 PA, Rotterdam, The Netherlands

    George Hendrikse (Chair Economics of Organization) (Chair Economics of Organization)

  4. Center of Business Studies, University of Vienna, Brünner Str. 72, 1210, Vienna, Austria

    Josef Windsperger

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Torikka, J. (2007). Creating Franchised Businesses Through Franchisee Training Program — Empirical Evidence from a Follow-up Study. In: Cliquet, G., Tuunanen, M., Hendrikse, G., Windsperger, J. (eds) Economics and Management of Networks. Contributions to Management Science. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-1758-4_12

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