Franchising, retailing and the development of e‐commerce

Franchising has shown considerable growth in recent years and in advanced economies, such as the USA and the UK, and currently accounts for approximately one‐third of all retail sales. It would seem, therefore, that franchising and retailing represent a fruitful partnership, though there has been little research as to why this should be. In this article the authors seek to address this situation by considering those characteristics that make retailing particularly suitable for franchising, through an examination of the UK context. Given the changing nature of the retail industry and the advent, in particular, of e‐commerce, consideration is given to the future for retail development through franchising.