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Article Dans Une Revue Recherche et Applications en Marketing (English Edition) Année : 2021

Brand equity protection and new geographic dynamics evidence from franchising in Brazil

Muriel Fadairo
  • Fonction : Auteur
Joseph Kaswengi
Cintya Lanchimba
  • Fonction : Auteur
Eugênio José Silva Bitti
  • Fonction : Auteur

Résumé

The success of franchising contracts may depend on the market. Business format franchising is based on having a common brand name and concept within the chain developed by the franchisor. As intangible assets, all brands and related business concepts do not have the same profitability. Thus, we address the question of spatial organisation impact on franchise contracts managed by the parent brand in the Brazilian market. Within the traditional agency view, the presence of distant retail outlets leads the franchisor to choose a payment mechanism designed to provide incentives to the franchisee; that is, a low royalty rate associated with a high fixed fee. Based on a unique panel dataset, we provide evidence that spatial dispersion has the opposite impact in Brazil. This new insight suggests the need for brand assets protection, decisive in an emerging market context. Moreover, monetary provisions and alternative tools play a critical role in brand maintenance and support.
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Dates et versions

hal-03527417 , version 1 (15-01-2022)

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Muriel Fadairo, Joseph Kaswengi, Cintya Lanchimba, Eugênio José Silva Bitti. Brand equity protection and new geographic dynamics evidence from franchising in Brazil. Recherche et Applications en Marketing (English Edition), 2021, 36 (3), pp.8-24. ⟨10.1177/2051570720966287⟩. ⟨hal-03527417⟩
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