Abstract
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This paper intends to study how significant the six factors (finance, promotion, location, product, support and price) influence franchisee’s decision making in establishing a new franchise, within the Petaling Jaya region. Six hypotheses were tested using Chi Square statistical method to understand and evaluate the relationship between the factors and the franchise ownership decision making. Amongst the six hypotheses tested, two factors indicated positive significant relationship towards franchisee’s decision making. The first factor, “support”, was an agreeable and expected factor by both experienced and non-experienced franchise owners, towards franchisors. Meanwhile, the second factor “product”, is essential to be known as it is the selling factor of the franchise itself. However this result can’t be considered entirely without further investigations due to the biasness of the results towards the 95% candidates whom do not have experience and knowledge in franchising. The study includes factors which are deemed insignificant and ends with some considerations, recommendations and limitations which will help in future research related to business franchising.
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