Franchising from the Franchisee's Perspective

Protecting Franchisees from Abusive Arbitration Clauses

Plural Form in Franchising: An Incomplete Contracting Approach

Plural form franchising is modeled from an incomplete contracting perspective. Complete franchising is the unique, efficient governance structure only when the plural form externality is limited and the costs of investment are low for both franchisees. Governance structure choice is irrelevant when the costs of investment are high for all franchisees, because no franchisee will invest. Finally,...

Multi-unit Franchising Organizational Capability and Transaction Cost Explanations

This study presents an organizational capability (OC) and transaction cost (TC) explanation for the franchisors’ choice between single-unit and multi-unit franchising. The OC-perspective regards the firm as a bundle of resources which are transformed into organizational capabilities through interactive firmspecific processes, in order to create competitive advantage. According to the OC-view, m...

Brand Piracy By Franchisees

This research explores the situation in which a franchisee exits the franchise system but continues to operate independently. This action is a form of brand piracy as the former franchisee exploits the intellectual property of the franchisor. A franchisor, a former franchisee and a current franchisee from six franchise systems were interviewed in order to obtain diametrical viewpoints. It was c...

Searching for Answers: The Cause and Resolution of Conflict in Franchising

The aim of this research was to explore the dimensions of franchisor and franchisee power and control in the franchising relationship in the Australian franchising sector. In a franchising arrangement the franchisee is heavily dependent on the franchisor, particularly in the early stages where the learning curve is steep. It is generally agreed that the franchisor wields the most power, althoug...