| Abstract: | Franchise relationships are based on the potential for greater gains through groin membership; the very nature of this relationship raises questions concerning latitude for independent action and constraints on decision authority. Key issues concern the degree of autonomy the franchisee should have, the nature of the franchise contract, and the management of conflict. The authors conclude that there is little or no virtue in a high degree of franchisee autonomy; that the inherent dangers of power concentration can be minimized via appropriate contract design; and that one critical aspect of the channel administrator's task is intelligent handling of conflict, particularly situations that can impair efficiency. |
