Study On The Performance Evaluation Of The Franchising System

Franchising began to emerge in the late 19^th and early 20^th century in America. Due to the advantages owned by franchising and the higher percentage of success, franchising is extensively adopted by various industries around the world. By 2003, China became to the country having the most franchising systems instead of America. Franchising creates many famous companies and brands, however, also causes the failure of many companies. There is no mode which can guarantee the success absolutely. Franchising is a double-edged sword and must be treated rationally. Based on this, it is necessary to provide a tool which can evaluate the franchising system performance objectively, and help the franchisor to audit itself and develop healthily.The thesis consists of 7 chapters. Chapter 1. Introduction. This chapter is an introduction that addresses research background and its significance, methodology, framework as well as innovation of this research, and also defines the major concepts involved in the paper. Chapter 2. Literature review. This chapter draws on insights of some basic theories about franchising study from broader literatures. Chapter 3. Overview of franchising. The chapter makes a detailed and systemic introduction of the concept, sort of franchising, and differences from other operation models. Chapter 4. The analysis of franchising based on economics and the selection of the performance evaluation indexes. Based on the four hypothesizes and related economics theories, the performance evaluation indexes are chosen. Chapter 5. The model of the franchising system performance evaluation. The chapter introduces the principle and steps of the model. Chapter 6. Case study. Taking Union Laundry Corporation as the sample, verifying the feasibility of the model. Chapter 7. Conclusion. The limitations and future study orientations have been illustrated.