Revenue Diversification Strategies in Franchise Systems: Beyond Traditional Sales Models

References

[1] Gillis WE, Castrogiovanni GJ. The franchising business model: an entrepreneurial growth alternative. Int Entrep Manag J. 2012;8(1):75-98. doi:10.1007/s11365-010-0158-8.

[2] Dant RP, Kaufmann PJ. Structural and strategic dynamics in franchising. J Retail. 2003;79(2):63-75. doi:10.1016/S0022-4359(03)00011-3.

[3] Nijmeijer KJ, Fabbricotti IN, Huijsman R. Making franchising work: a framework based on a systematic review. Int J Manag Rev. 2014;16(1):62-83. doi:10.1111/ijmr.12009.

[4] Kaufmann PJ, Lafontaine F. The pricing of franchise rights. J Retail. 2001;77(4):537-545. doi:10.1016/S0022-4359(01)00053-7.

[5] Windsperger J. The fee structure in franchising: a property rights view. Econ Lett. 2001;73(2):219-226.

[6] Vázquez L. Up-front franchise fees and ongoing variable payments as substitutes: an agency perspective. Rev Ind Organ. 2005;26(4):445-460. doi:10.1007/s11151-005-0983-z.

[7] Maruyama M, Yamashita Y. Franchise fees and royalties: theory and empirical results. Rev Ind Organ. 2012;40(3):167-189. doi:10.1007/s11151-011-9323-7.

[8] Maruyama M, Yamashita Y. Revenue versus incentive: theory and empirical analysis of franchise royalties. J Jpn Int Econ. 2014;34:154-161.

[9] Dant RP, Berger PD. Modelling cooperative advertising decisions in franchising. J Oper Res Soc. 1996;47(9):1120-1134. doi:10.1057/jors.1996.141.

[10] Bang D, Choi K, Jang SC. Are franchise royalty fees related to franchisors’ support of franchisees? Evidence from the restaurant industry. Int J Hosp Manag. 2023;114:103555. doi:10.1016/j.ijhm.2023.103555.

[11] Kremez Z, Frazer L, Thaichon P. The effects of e-commerce on franchising: practical implications and models. Australas Mark J. 2019;27(3):158-168. doi:10.1016/j.ausmj.2019.04.002.

[12] Chaney D, Ghantous N, Chameroy F, Jeanpert S, Schultz M. Franchisees’ adoption of omnichannel marketing. Ind Mark Manag. 2025;126:18-29. doi:10.1016/j.indmarman.2025.02.001.

[13] Ghantous N, Chaney D, Chameroy F, Jeanpert S, Schultz M. Omnichannel reconfiguration capabilities in franchising: a meso-foundations analysis. Manag Decis Econ. 2025;46(4):2431-2447. doi:10.1002/mde.4474.

[14] Septian IR, Hamdi E, Indradewa R, Abadi F. FranchiseGlobal.com business development strategy: analysis using financial planning at FranchiseGlobal.com. J Indones Sos Teknol. 2024;5(10):4298-4310. doi:10.59141/jist.v5i10.5312.

[15] Grünhagen M, González-Díaz M, Hussain D, da Silva Filho HM. Multibrand, multisystem and multirole franchising: a qualitative exploration and framework development in Brazil. J Small Bus Manag. 2022;60(2):253-288. doi:10.1080/00472778.2020.1800353.

[16] Brookes M, Roper A. Realising plural-form benefits in international hotel chains. Tour Manag. 2012;33(3):580-591. doi:10.1016/j.tourman.2011.06.013.

[17] Lawrence B, Cooil B, Cetin G, DeSantis M. Return on investments in hotel franchising: understanding moderating effects of franchisee dependence. Prod Oper Manag. 2021;30(8):2420-2440. doi:10.1111/poms.13383.

[18] Ukrainets LA. Strategies for the development of franchise model in hotel industry: China’s case. Econ Bull Dnipro Univ Technol. 2025;(89):129-136. doi:10.33271/ebdut/89.129.

[19] Łucak P. Diversification of revenue in FMCG sector enterprises. Sci Pap Silesian Univ Technol Organ Manag Ser. 2025;(222):435-450. doi:10.29119/1641-3466.2025.222.24.

[20] THE IMPACT OF PROFESSIONAL EXPERIENCE ON COLLECTIONS MANAGEMENT: HOW SEVENTEEN YEARS IN THE FIELD SHAPE DECISIONS AND STRATEGY EFFECTIVENESS. (2022). International Seven Journal of Multidisciplinary, 1(2). https://doi.org/10.56238/isevmjv1n2-021

[21] Neves Filho, A. W. B. . (2020). ENTREPRENEURSHIP IN COLLECTIONS: CHALLENGES AND OPPORTUNITIES IN MANAGING DIVERSIFIED CLIENT PORTFOLIOS. Revista Sistemática, 1(1). https://doi.org/10.56238/rcsv1n1-007

[22] Recycling of Rare Earth Elements Using Ionic Liquids for Regenerative Manufacturing. (2023). International Seven Journal of Multidisciplinary, 2(5). https://doi.org/10.56238/isevmjv2n5-037

@article{1715396,
      author = {Tuilla Magalhaes de Barros Reboucas},
      title = {Revenue Diversification Strategies in Franchise Systems: Beyond Traditional Sales Models},
      journal = {Iconic Research And Engineering Journals},
      year = {2024},
      volume = {7},
      number = {12},
      pages = {784-788},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1715396.pdf},
      abstract = {Franchise systems are traditionally analyzed in terms of outlet expansion, contractual governance, and brand replication, yet their economic sustainability also depends on the ability to structure revenue sources beyond the direct sale of products or services. This article examines the main mechanisms through which franchise systems diversify their revenue architecture, with emphasis on initial fees, ongoing royalties, advertising contributions, margins on input sales, digital integration, omnichannel strategies, and multibrand and multisystem arrangements. Based on a qualitative review of the literature, the article argues that revenue diversification is not merely an accounting outcome, but a strategic choice associated with system governance, incentive alignment, digital transformation, and sector-specific conditions. The literature suggests that more diversified structures may enhance franchisor financial resilience and reduce dependence on a single transactional stream, but they may also intensify channel conflict and distributive tensions when coordination mechanisms are weak. The central argument is that diversification in franchising creates value consistently only when the monetization logic is aligned with operational support, the legitimacy of system charges, and the system’s capacity to manage interdependent relationships between franchisor and franchisees.},
      keywords = {Franchising, Revenue Diversification, Royalties, Omnichannel, Franchise Governance},
      month = {June},
      doi = {https://doi.org/10.64388/IREV7I12-1715396}
  }