Franchisee actions trigger franchisor power strategy alterations

Abstract

This study offers insight on how conflicts in hybrid relationship business may arise and affect its performance. This study of the franchise relationships provides views of 124 UK franchisors. Validation interviews from eight academics, franchisors and practitioners validate the findings. It is concluded that franchisers endeavour to keep B2B relationship sustaining and flourishing which denotes the ultimate expression of hybrid relationships. The franchisor strategy on power greatly depends on franchisee behaviour and the exercise of the power by them may vary accordingly. Prevalence of conflicts between two partners negatively impacts the franchise system. Size and age of the franchise influences the use of power. Conflicts also trigger change in future plans of the franchisor. Hence the accruing strategy could be different and dynamic at each stage of the life cycle and varies based on business size.