University challenge

A lack of awareness and understanding of franchising is thought to be a main problem affecting the recruitment of suitable franchisees. There have been suggestions on ways to increase awareness, yet the key to solving this problem may be through education and research.

Over the last 10 years Lancaster University Management School has run an undergraduate module on franchising. Each year the module provides over 100 of the UK's best business school students with vital knowledge and skills in running a franchised business. The module has evolved through the Institute for Entrepreneurship and Enterprise Development (IEED)'s own research and business support activities, which provide students with a link between theory and practice. 

It is rare to find franchising so high on the agenda at universities in the UK. All too often it is mentioned as a route to market, a form of business growth, or an 'entry mode strategy' for budding small business owners. Each year at the start of the franchise module, few students are aware of what franchising is and the opportunities it offers. The module not only puts franchising in the spotlight, but presents it as an exciting context for research, teaching and practice.

The module emphasises the practical element of franchising from franchisor and franchisee perspectives. Part of the module involves students taking on the role of a prospective franchisee and they are assessed on the quality of their decision-making process in choosing a franchise. To aid this, they are provided with systematic and staged process that helps pinpoint available franchise opportunities and avoids many of the common pitfalls that have been identified through research.

The process focuses on three areas: The first is that students state the criteria on which they base their decisions at each stage of the process; the second is that they consider a wide range of opportunities rather than just one; and the third is that it ensures that each stage is evaluated as a business or investment decision with a clear outline of the business model and their role as a franchisee.

Taking on the role of a prospective franchisee is one of the best ways to immerse students into the world of franchising. Students visit the franchise exhibition in Manchester and guest speakers from the franchise community are invited to talk about their experiences in franchising. Each year the module includes two 'Question Time' panels, one with franchisees and one with franchisors. In their roles as potential franchisees, students query panel members on all aspects of franchising. These two different angles provide students with a greater insight into important elements of the decision making process and in particular the central importance of the franchisor-franchisee relationship.

Students leave the module more knowledgeable about franchising. This knowledge may one day prove invaluable if they, or their friends or family, take on a franchise.

I have been involved in research on franchising for over five years, with a particular interest in the role of the franchisee as small business owner. My research provides a vital function in continually evolving the undergraduate franchise module. The work also contributes to IEED's business support programmes and is integrated into an intense half-day 'Franchising Master-class', which forms an important element of Lancaster's LEAD programme.

Franchise organisations offer an exciting environment for research, encompassing management and organisational challenges. Research must be driven by the needs of the franchise community.