A sustainable franchisor-franchisee relationship model: Toward the franchise win-win theory |
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| Institution: | 1. School of Hospitality and Tourism Management, Purdue University, West Lafayette, IN, 47907-0327, USA;2. Department of Foodservice Management, College of Hospitality and Tourism Management, Sejong University, Seoul, South Korea;1. School of Hospitality and Tourism Management, Purdue University, Marriott Hall, 900 W. State Street, West Lafayette, IN 47907, United States;2. College of Hotel and Tourism Management, Kyung Hee University, Dongdaemun-gu, Seoul, 130-701, South Korea;1. College of Business Administration, Sejong University, 209, Neungdong-ro, Gwangjin-gu , Seoul 143-747, South Korea;2. Association Board of Korean Education Evaluation, 33, Songpa-daero 34-gil, Songpa-gu, Seoul 138-854, South Korea;3. Department of Economic Development, Tourism, and Sport Management, The University of Southern Mississippi, Hattiesburg, MS 39406, USA;4. Harry F. Byrd Jr., School of Business, Shenandoah University, 1460 University Dr., Winchester, VA 22601, USA;5. Department of Hotel & Restaurant Management, Cheju Halla University, 38 Halladaehak-ro,Jeju-si, Jeju Special Self-Governing Province 690-708, South Korea;6. Department of Food Franchise, Shinheung College, 117 Howon-dong, Uijeongbu-shi, Gyeonggi-do 480-701, South Korea;1. Oxford School of Hospitality Management, Faculty of Business, Oxford Brookes University, UK;2. Department of Tourism Management, Faculty of Business, Dokuz Eylul University, Izmir, Turkey;1. Escuela Politécnica Nacional, Departamento de Economia Cuantitativa, Ladron de Guevera E11-253, Quito 170517, Ecuador;2. The University of North Carolina, Bryan School of Business & Economics, 328 Bryan Building, P.O. Box 26170, 516 Stirling Street, Greensboro, NC 27402-6170, United States;3. Université Savoie Mont Blanc, Institut de Recherches en Gestion et Economie, Institut d’Administration des Entreprises, 4, chemin de Bellevue, 74944 Annecy-le-Vieux Cedex, Annecy, France;4. University of São Paulo, Faculty of Animal Science and Food Engineering (USP/FZEA), Campus Fernando Costa, Av. Duque de Caxias Norte, 225, Pirassununga / SP, ZIP Code 13635-900, Brazil |
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| Abstract: | In order for a franchise system to obtain long-term sustainability, balancing the benefits between franchisors and franchisees is critically important. In order to expand this area of research, this study reviewed prior franchise literature and then outlined what a healthy franchise system is. Further, this study also proposed a model for sustainable franchisor-franchisee relationships (SFFR), which supports the ‘franchise win-win theory.’ In developing a model, this study suggested that relationship quality is a vital part of a healthy relationship. This study also identified the three core components of a sustainable franchisor-franchisee relationship (i.e., satisfaction, trust, and commitment), as well as the antecedents and consequences of the relationship. This study conclusively suggested that franchisees are willing to continue their current franchise business only when they are satisfied with a franchisor’s fairness, autonomy, formalization, and support. |
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| Keywords: | Franchisor-franchisee relationship Relationship quality Franchisee satisfaction Franchisee trust Franchisee commitment Sustainability |
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