Using Cases to Discover Theory

Theory is fundamental to how we understand the empirical world, and cases present a wonderful opportunity to both learn from and challenge current theory. The author juxtaposes the specifics of the case of the Polish-based restaurant operator with current franchising theory to offer two propositions. The first, grounded in the dominant agency theory, suggests that franchising allows a company to expand without the expense of the personnel necessary to operate international units. The other, based on an emerging symbiosis perspective, proposes that franchisor and franchisee need each other to adapt an already successful operating system for the new home market. One possible reason that the Polish franchise failed may be based on inadequate autonomy allowed the Polish franchisee.