The choice of beauty, health and well-being franchises: A risk-return assessment
International Journal of Development Research
The choice of beauty, health and well-being franchises: A risk-return assessment
Received 22nd December, 2021; Received in revised form 03rd January, 2022; Accepted 16th January, 2022; Published online 26th February, 2022
Copyright © 2022, Elisa Lumi Matsumura et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
There are numerous franchises available on market today, so the research question of this work is: how could a potential franchisee choose his ideal franchise? Based on this question, the general objective is to give conditions of choice for a potential franchisee to make his decision. For this, a quantitative and descriptive methodology was applied, with usage of Multi-Attribute Utility Theory (MAUT) and the Monte Carlo Method in the results of an interview which was applied to 3 potential franchisees from the Beauty, Health and Wellness segments. The research is also documentary, as it was necessary to collect some financial information from the company’s investor reports. For the interviews, a grade from 0 to 10 was assigned to qualitative indicators, thus, it was possible to measure these qualitative biases of the would-be franchisees and, even so, financial information had a representative weight in both methodologies. Both MAUT and Monte Carlo pointed to the same franchise as the best indication in this study, thus, they are complementary methodologies that have different approaches and views on the problem.
