Intuitionistic Fuzzy Model for Franchisee Selection

Abstract

In today’s dynamic market environment, accompanied by galloping inflation and the epidemic caused by Covid-19, the franchise business model is an effective choice for companies to expand and strengthen their business. The process of digital transformation of the business under unclear conditions requires updating the multicriteria methods for decision making regarding the selection of the most suitable franchisee. The selection of the most suitable franchisee applicant in an uncertain environment is a key decision for a franchisor and the success of a franchising business. In this research, a generalized problem for optimal franchisee selection is formulated and a new approach for solution of this problem is proposed by the theories of index matrices and intuitionistic fuzzy logic. The priorities of the evaluation criteria and the rating of the experts are taken into account in the proposed algorithm. The intelligent decision support model is applied on a franchisee selection in the first Bulgarian franchise patisserie with entirely Bulgarian know-how, leading to winning results. In the future, a software application will be developed to transform the process of selection of a franchisee into digital in an uncertain environment.