Advancing research on microfranchising: a critical review

This review examines microfranchising as a distinct organizational form designed to create scalable enterprises for necessity entrepreneurs in resource-constrained contexts. Drawing on a systematic review of refereed articles, foundational books, and key industry reports, the paper synthesizes fragmented scholarship to clarify what microfranchising is, who participates in it, and how these systems are designed and governed. The analysis organizes existing research into four interrelated thematic streams: (a) adaptations of the franchise model to institutional voids and resource scarcity, (b) franchisee dynamics related to motivation, support, and outcomes, (c) network design and ecosystem governance, and (d) the capacity to scale social impact through inclusion and empowerment. The findings show that microfranchising requires substantial architectural and governance adaptations to operate under weak institutional conditions, and that franchisee outcomes depend critically on intensive, context-appropriate support. Rather than functioning as simple franchisor–franchisee dyads, microfranchise systems operate as complex ecosystems in which value creation emerges from interactions among franchisors, franchisees, donors, suppliers, and community actors under hybrid governance arrangements. Evidence across sectors and geographies indicates that microfranchising can expand access to essential goods and services, foster economic participation, and empower marginalized populations, particularly women. At the same time, the review identifies persistent gaps, including geographic concentration, limited longitudinal evidence, and underdeveloped theoretical integration, and outlines a research agenda to advance Understanding of microfranchising’s mechanisms, scalability, and long-term social and economic impact.