THE IMPACT OF THE INTEGRATION OF DIGITAL MARKETING IN THE COMPANY STRATEGY OF FRANCHISES

This article explores the long-term effects of integrating e-commerce into franchise networks. The study involved conducting semi-structured interviews with franchisees and franchisors in Italy. Short-term acceptance of e-commerce by franchisees is often influenced by power imbalances or contractual inertia. However, in the long term, franchisees are less likely to invest in franchise chains that do not involve them in e-commerce. Franchisors face the challenge of choosing between profit-sharing with franchisees or investing more in directly operated stores. It's noted that redirecting ownership could diminish the entrepreneurial value of franchising, which is vital for economic development, especially as multi-unit franchising becomes more prevalent internationally.