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The influence of brand equity on the success of franchises' expansion

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  1. Literature review
    1. Franchise expansion
    2. Brand equity
    3. The link between brand equity and expansion
    4. Conceptual framework
  2. Industry overview
    1. The bakery industry
    2. PAUL's position in the industry
    3. The competition
    4. What makes PAUL unique
  3. Research methodology
    1. Research design
    2. Data collection
    3. Sampling
    4. Data analysis
  4. Findings and discussion
    1. Loyalty measurement
    2. Perceived quality and leadership measurement
    3. Associations and differentiation measurement
    4. Awareness measurement
    5. Consumer-based brand equity

Previous research widely recognizes brand equity as a factor of durability for a business model. However, there is a noticeable gap in the literature in identifying the influence of brand perception on the success of a franchise firm. Addressing these gaps, this paper explores the impact of consumer-based brand equity on the success of franchises' expansion. This study seeks to understand how brand equity can be leveraged through band awareness, brand loyalty, perceived quality and brand associations, to enhance positive consumer response, leading to a successful franchise expansion.

This study is motivated by two objectives: (1) identify the factors that play a role in the brand equity of a product or service and determine their relative importance and (2) examine how the success of a franchise concept depends on the perceptual equity of the brand by the consumer. A qualitative research design was employed, combined with an interpretive philosophy and a deductive approach, comprising 15 semi-structured interviews with key informants. In-depth case study of a franchise company was conducted in the UK and in France in order to gain insight into consumer's behaviour and brand perception.

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