Channeling Franchisee Independence: How Personal Initiative and Self-Awareness Mediate the Relationship Between Desire for Autonomy and Franchise Performance

Abstract

Rooted in self-determination theory (SDT), this paper focuses on the relationship between a franchisee’s desire for autonomy and financial performance. The typical franchise requires system-wide conformity and standardization. Yet, most franchisees are more than merely entrepreneurs with an instruction manual and so they desire independence, and addressing this paradox of desire for autonomy versus the desire for standardization represents a major challenge for franchisors. Utilizing a sample of 274 franchised fitness center locations across the United States, this study reports a negative relationship between a franchisee’s appetite for independence and their center’s financial performance. However, we also report that this adverse relationship is positively mediated when channeled through the franchisee’s personal initiative and self-awareness. These findings suggest that although the desire for autonomy may not be the most desirable franchisee disposition, its detrimental impact on performance may be suppressed if franchisees are aware of their strengths and weaknesses and demonstrate superior initiative and proactive behaviors.