Negotiating agency in mitigating franchisee failure: A critical discourse analysis

Abstract

This study examines how asymmetries of agential power in franchisor-franchisee relationships contribute to franchisee failure, and how franchisees can negotiate agential power to mitigate failure. Based on a critical discourse analysis, the research findings establish that franchisor dominance during three core stages of the franchisee lifecycle – notably at the pre-launch, inauguration and operation phases – influences franchisee failure. Supporting a theorization based on the agencing framework, this paper presents a nuanced understanding of how agential power is attributed and negotiated in franchise relationships, and portrays franchisees as proactive actors capable of negotiating a stronger, counteractive, agential power position. We introduce the agencing framework as an important governance mechanism for franchise relations and raise implications for managing power-imbalances in franchise relationships.