Franchise’s locational concentration in Brazil: a contextual perspective

Purpose This study aimed to explore the relationship between vectors of local entrepreneurial ecosystems (EE) and the locational concentration of franchise network units in Brazilian cities. Design/methodology/approach Information about the municipalities where a set of franchise networks operates, along with the number of units per location, was tabulated for 2016, 2019 and 2022. Data related to EE were obtained from ISDEL. The analytical strategy was designed based on a typical estimation framework, aiming to identify the associations between EE components and the factors influencing the concentration of entrepreneurial activity. Findings The results indicate different movements when analyzed from the perspective of municipalities as well as from the perspective of networks. Through empirical analysis, it is possible to verify a significant relationship between EE dynamics and the locational concentration of franchised networks. Originality/value There is no record of previous work on the relationship between contextual factors and the locational concentration of franchise network units. In addition, it contributes to the debate on governance arrangements in the face of crises from the perspective of entrepreneurship. Finally, this study contributes to the discussion of EE by incorporating franchising arrangements into the analysis.