Franchisor Insolvency in Australia: Profiles, Factors, and Impacts

J Buchan; Lorelle Frazer; C Zhen Qu; R Nicholls

doi:10.1080/1046669X.2015.1113487

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Franchisor Insolvency in Australia: Profiles, Factors, and Impacts

Journal article

Open access

Peer reviewed

Franchisor Insolvency in Australia: Profiles, Factors, and Impacts

J Buchan, Lorelle Frazer, C Zhen Qu and R Nicholls

Journal of Marketing Channels, Vol.22(4), pp.311-332

2015

DOI: https://doi.org/10.1080/1046669X.2015.1113487

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Abstract

Australia

bankruptcy

business format franchising

franchise business processes

franchisee insolvency

franchisor failure

franchisor insolvency

Franchisor failure is enduring and important in terms of cost, nationally and internationally. This article presents research into Australian franchisor firms that went into a form of bankruptcy protection known in Australia as "voluntary administration." The research was driven by the commonality and divergence of the interests of franchisors and franchisees. The article provides an insight into franchisor failure and its effect on franchisees. It presents the substantial literature survey that was used to frame questions for franchisor administrators to understand issues associated with franchisors in administration. The limited data demonstrate diversity in the treatment of franchisees during the franchisor's administration. In Australia, franchisees remain a captive, financially committed counterparty during insolvency and potentially deliver a great financial benefit to the franchisor's creditors. The article concludes that administration of franchisors does not take into account the distinct relationship between franchisors and their franchisees and provides policy recommendations to address this matter. © 2015, Published with license by Taylor & Francis.

Details

Title: Franchisor Insolvency in Australia: Profiles, Factors, and Impacts
Authors: J Buchan (Author) - University of New South Wales
Lorelle Frazer (Author) - Griffith University
C Zhen Qu (Author) - City University of Hong Kong, People's Republic of China
R Nicholls (Author) - University of New South Wales
Publication details: Journal of Marketing Channels, Vol.22(4), pp.311-332
Publisher: Routledge
Date published: 2015
DOI: 10.1080/1046669X.2015.1113487
ISSN: 1046-669X
Copyright note: Copyright © 2015 Jenny Buchan, Lorelle Frazer, Charles Zhen Qu, and Rob Nicholls This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons. Org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. The moral rights of the named author(s) have been asserted.
Organisation Unit: School of Business and Creative Industries; University of the Sunshine Coast, Queensland; USC Business School - Legacy
Language: English
Record Identifier: 99450765402621
Output Type: Journal article

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Collaboration types: Domestic collaboration; International collaboration
Web Of Science research areas: Business

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