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Building franchisee trust in their franchisor: insights from the franchise sector
Journal article   Peer reviewed

Building franchisee trust in their franchisor: insights from the franchise sector

Anthony Grace, Lorelle Frazer, S Weaven and R P Dant
Qualitative Market Research: An International Journal, Vol.19(1), pp.65-83
2016
url
https://doi.org/10.1108/QMR-09-2014-0085View
Published Version

Abstract

agency franchising interviews relationship trust trustworthiness
Purpose - The purpose of this research is to identify the critical determinants of a franchisee's trust in their franchisor. Design/methodology/approach - A qualitative approach was used, and 30 interviews were conducted with franchising participants. The first phase of the research consisted of exploratory interviews with franchising experts (franchise lawyers, accountants, consultants, mediators and bankers), and the second phase consisted of semi-structured interviews with franchisees and franchisors across two franchise systems. Findings - The research revealed five critical determinants of a franchisee's trust in their franchisor: franchisee's engagement in the system, franchisee's confidence in the system, franchisee's perception of a strong team culture, franchisee's perception of franchisor competence and franchisee's perception of franchisor character. Practical implications - The research provides insight into how the aforementioned components can be developed within a franchise system to build franchisee trust. The paper also concludes with four practical recommendations that can be integrated within a franchise system to increase levels of franchisee trust. Originality/value - This research builds on prior research into franchisee trust, providing an original contribution to the literature through the development of a practical model, showcasing critical determinants of a franchisee's trust in their franchisor. © 2016, Emerald Group Publishing Limited.

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