Multi-Unit Franchising and Relational Governance: A Study of Operating Networks in Brazil

The relationship between relational governance mechanisms and multi-unit franchising, where a single franchisee owns operates multiple units, has received limited attention in the existing literature. Previous studies primarily focus on role of trust such arrangements. Consequently, this study aims to develop test theoretical model that explores association higher allocation units type key attributes governance, as participation communication. Adopting franchisors’ perspective, our sample consists 170 networks affiliated with Brazilian Franchising Association (Associação Brasileira de [ABF]), data were collected from various sources, including self-administered questionnaire (based 2018). results provide support for general hypothesis, indicating positive aspects franchisor-franchisee partnership proportion owned by franchisees. Additionally, we find operational sector (retail/service) specific local investments diminish explanatory power model’s variables related suggesting secondary influence decision-making process concerning contractual mix.