From catalyst to burden: shopping malls and franchising in Brazil

Purpose This research links the global advance of the franchise model to the geohistorical foray of shopping malls through an empirical longitudinal study in the largest emerging market in Latin America, Brazil. Design/methodology/approach We conducted an analysis of a multi-year set of qualitative interviews with the same franchised mall tenants (23 interviews in 2017 and 12 follow-up interviews in 2022) via an iterative procedure of transcript data coding and theme identification. Findings Shopping malls were key catalysts in the pre-pandemic growth of franchising in Brazil, yet during the pandemic, malls became liabilities. Attitudes towards malls as franchise hosts changed, flipping the mall perception from catalytic host to burdensome trap. Mall management companies, as key gatekeepers, deserve more research attention. Originality/value Our study reveals the detrimental role shopping malls, with their static rules and high cost structures, have played as franchise businesses struggled to survive during the global pandemic. While franchising represents one of the most influential retail business models today, shopping malls have been among the most important brick-and-mortar retail institutions since the 1950s. Jointly, they constitute a unique retail symbiosis with little attention in the academic literature.