Book chapter
Franchisor-franchisee relationships
Handbook of Research on Franchising, pp.211-233
Research Handbooks in Business and Management series, Edward Elgar Publishing
2017
Abstract
Franchising relationships are centred on the intersection of contractual agreements and personal dynamics between the parties. Franchisors have been known to comment that if they have to resort to the contract to resolve an issue with a franchisee then communication and trust has already broken down. This chapter explores the unique nature of the franchisor-franchisee relationship from both contractual and interpersonal perspectives. Whilst the legal definitions and framework governing franchising differ around the world, the basic tenets are similar. Franchising is, at its very core, a method of distribution of goods or services. Franchisors and franchisees generally share similar goals around growing the business and retaining the integrity of the brand. However, their goals can sometimes diverge out of self-interest. When their goals are misaligned and their objectives become incompatible, maintaining balance and equity in the relationship is vital. Communication, consultation and interdependence are important aspects of the franchising relationship, which are examined in this chapter. Both the franchisor and franchisees hold considerable power in the relationship, although it is clear that franchise contracts are generally drafted in the franchisor’s favour as custodians of the brand. This perceived or actual imbalance in power may cause tension in the relationship which may escalate to a state of heightened conflict, sometimes transforming into disputation between the parties. This chapter scrutinizes the complex interplay between power, control and conflict in franchising relationships.
Details
- Title
- Franchisor-franchisee relationships
- Authors
- Lorelle Frazer (Author) - Griffith UniversityAnthony Grace (Author) - Griffith University
- Contributors
- Frank Hoy (Editor) - Worcester Polytechnic InstituteRozenn Perrigot (Editor) - University of RennesAndrew Terry (Editor) - University of Sydney
- Publication details
- Handbook of Research on Franchising, pp.211-233
- Series
- Research Handbooks in Business and Management series
- Publisher
- Edward Elgar Publishing
- DOI
- 10.4337/9781785364181.00021; 10.4337/9781785364181
- ISBN
- 9781785364181
- Organisation Unit
- University of the Sunshine Coast, Queensland; School of Business and Creative Industries
- Language
- English
- Record Identifier
- 99613708802621
- Output Type
- Book chapter
Metrics
24 Record Views