Managing the Franchisor–Franchisee Relationship: A Relationship Marketing Perspective

Abstract

Since the emergence of the relationship marketing paradigm, researchers have increasingly considered why some efforts at relationship marketing are more successful than others. This article explores this subject within the context of a particular form of relational exchange—the franchisor–franchisee relationship. Though the importance of good franchisor–franchisee relations have long been recognized as critical to the success of franchise systems, little attention has been given as to how this can be achieved. This article, by applying a relationship marketing framework, seeks to provide new insights into those factors that influence relationship quality and considers how relationships may evolve over time. The case analysis suggests that the quality of the franchise relationship is impacted by a number of factors but that effective communication is critical in ensuring shared values and, therefore, a relationship characterized by trust and commitment. Leadership also emerges as being very important in shaping the relationship.