ABSTRACT
This chapter focuses on business format franchising. It examines the rationale for government intervention to support franchisees, and then briefly discusses the tools currently used to support the franchise sector. Franchising is a form of organisational structure that enables a business to grow by licensing other parties to operate a version of the original business. Business format franchising in particular has become a significant part of the SME landscape in both developed and developing economies. Policymakers and regulators could implement, any strategies to reduce the risks of franchising for franchisees. The chapter concludes by recommending policymakers focus on five areas: making data accessible, improving liaison across regulatory silos and across jurisdictions, involving all stakeholders in policy, empowering franchisees as a distinct group. Franchising is a powerful and effective business model, but it is not perfect. Government involvement is necessary because of the difficulty in accessing the perspectives of stakeholders other than franchisors, and the cost of access to courts.
