Franchise Fairs: A Relevant Signal in Franchise Choice

This study addresses how potential franchisees who are embarking on their first start-up venture choose which franchise chains they wish to enter into business with. Working within the framework of signalling theory, the study’s aim is to analyse the relationship between franchise choice, and brand, price and participation in franchise fairs. By applying panel data methodology, the analysis yields results that imply that potential franchisees prefer to garner information directly from franchise fairs, as opposed to heeding the other signals under study.