Using Action Research in Business: Developing New Practical Framework of Financial Planning Process for a New Franchise System

Abstract

Franchising is the fastest growing method of doing business these days, however, thereis little academic research to guide or regulate industry practices. Thus, this researchinvestigated the financial planning process in developing a new franchise system.This study used action research methodology to develop a new practical frameworkof financial planning for a new franchise system within the Malaysian governmentdepartment franchise regulators. Three main action research cycles were conductedwith three new franchise systems seeking to register with the Registrar of FranchiseMalaysia (ROF). To triangulate the findings of the action research, the researcher alsopresented them at a National Franchise Workshop (NFW). These activities showedthat the process of financial planning for a new franchise system should comprise 14elements with specific linkages. These practical frameworks for financial planning in anew franchise system were adopted by the ROF to be used as guideline in the processof developing a new franchise system and serve as evaluation tools for franchiseregistration.