Good faith in franchising

Perrigot, Rozenn; Terry, Andrew; Lernia, Cary Di

doi:10.1108/ijrdm-02-2018-0043

Cited by 10 publications

(9 citation statements)

References 38 publications

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“…However, we expect that providing fake information is not a common practice in the franchise business where franchisors and franchisees are supposed to act in good faith (Perrigot et al, 2019). Sadeh and Kacker (2018) found that successful franchisors were more prone to providing earning claims in the pre-contractual information as an example of the quality of their business opportunities.…”

Section: Reaction Of Franchisees To Lack Of Expected Profitabilitymentioning

confidence: 99%

“…A few other studies have dealt with the franchisor perspective (e.g., Doherty, 2009;Kirby and Watson, 1999;Perrigot and Basset, 2018). In this paper, we adopted a dual perspective (Frazer and Winzar, 2005;Frazer et al, 2012;Perrigot et al, 2019), including conducting 44 interviews with both franchisors and executives/high-level managers of franchise chains and franchisees. This dual perspective was important in order to better assess the franchise professionals' perceptions on how and in which conditions performance-related issues can be perceived as a source of conflicts in franchise chains.…”

Section: Qualitative Approachmentioning

confidence: 99%

“…Another contribution we make to the franchising literature is in our empirical approach; more specifically, the use of a dual approach. We do not limit our study to either the franchisor or the franchisee perspective, as many previous authors have done (Perrigot et al, 2019). Furthermore, our focus is on France, contrary to most previous studies that have concentrated on Anglo-Saxon countries (Dant, 2008).…”

Section: Introductionmentioning

confidence: 99%

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“Conflict-performance assumption” or “performance-conflict assumption”: Insights from franchising

Perrigot

López-Fernández

Basset

2020

Journal of Retailing and Consumer Services

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Franchising is an organizational governance form where relational and formal contracts complement each other and where franchisor and franchisees together may obtain better performance than working alone. Although relational contracts may adapt to changing environments, they are not as efficient in ambiguous settings. In franchised stores, liability for low performance is not always clear. Indeed, franchisor and franchisees work in close collaboration, and, therefore, this ambiguity on causes of low performance may lead to conflicts. The franchising literature, as far as we know, has addressed practitioners' concerns regarding performance on one side, and conflicts on the other side, but no study has exclusively focused on low performance and the emergence of conflicts. Our research contributes to the franchising literature by filling this relative gap and, contrary to "conflictperformance assumption" (Pearson, 1973; Duarte and Davies, 2003) held in the broader context of distribution channels, we consider low performance to be a cause, rather than a consequence, of franchisor/franchisee conflicts. This empirical study deals with franchising in France, the leading market in franchising in Europe and the third largest in the world. We used a qualitative approach based on 44 in-depth interviews with 27 franchisors and executives/high-level managers of franchise chains, as well as 17 franchisees from various industries to get a dual, and so more complete, assessment of franchising practitioners' views of performance-related conflicts. Our research findings show that franchisees, as independent small business owners, give priority to financial results compared to other goals and they are driven to continuously improve the performance of their store(s). When expectations are not met, franchisees sometimes blame franchisors because they are interdependent in their success and liability is not straightforward. As a collaborative team, franchisors and franchisees may benefit from minimizing conflicts and preventing them with the careful selection and management of franchisees that share franchisor's values and have internal locus of control.

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Section: Reaction Of Franchisees To Lack Of Expected Profitabilitymentioning

confidence: 99%

Section: Qualitative Approachmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

“Conflict-performance assumption” or “performance-conflict assumption”: Insights from franchising

Perrigot

López-Fernández

Basset

2020

Journal of Retailing and Consumer Services

Self Cite

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“…For this research, it was adapted a structured questionnaire developed by Szulanski (1996) and were selected the most appropriate indicators aimed at the franchisee's perception about the sales process from the study developed by Perrigot et al (2017). The Perrigot et al (2017) has been cited in recent research in the area (A gan et al, 2018;Iddy and Alon, 2019;Perrigot et al, 2019). The four dimensions of barriers were considered to the process of knowledge transfer (content, context, source and recipient).…”

Section: Data Collection and Research Toolmentioning

confidence: 99%

Barriers to knowledge transfer of the franchisor to franchisee: an application in language schools

Araújo

Popadiuk

Pereira

2020

JWL

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Purpose This study aims to measure the influence of the barriers present in the knowledge transfer at the sales process, by the franchisor to the franchisee, in language schools in the São Paulo/SP city, Brazil. The theoretical aspects include the transfer of knowledge displayed through communication model and barriers inherent in this process. Using (Szulanski 1996) approach the barriers may occur in relation to, namely, the content of knowledge; context; the source; the recipient. Design/methodology/approach The methodology is quantitative and the type of research is exploratory and descriptive. For this investigation was used an adapted version of the questionnaire developed by Szulanski (1996), applied to a sample of 79 franchised language schools linked to the Brazilian Franchise Association. Beyond factor analysis it was used the nonparametric test of Jonckheere-Terpstra and analysis of variance, to comparing schools. Findings The results of this analysis revealed that certain types of knowledge transfers are evaluated by the franchisees as more favorably or unfavorably according to the brand franchise. These results show a lack of standardization trend of the activities of the sales process and mismatches with the guidelines of the franchisor. The authors highlight that in the comparison between the brands is evident the dominance of the CNA in relation to other networks of language franchises when analyzed the relationship factors, technical adequacy, absorption of knowledge, competence to absorb knowledge and in the indicators contribution to revenue, acceptance of guidelines and bring results. Originality/value This research contributes to the identification of barriers that are involved during the transfer of practices of the franchisor to the franchisee on the knowledge of the sales process in language schools, awakening in franchisee reflections of improvements and solutions that can be worked on and developed in their units. Specifically, the study contributes to the knowledge management literature in franchises, as this topic is still emerging, as it presents conflicting findings.

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“…Debonair a franchise of famous South African brand entered Kenya in 1998 with six outlets in 1999, expanded for two years, made loss and started closing their outlets. Past studies in this field have demonstrated the importance knowledge sharing on business innovation as demonstrated by (Perrigot, 2019), (Shaikh, 2018) (Grace, 2016) (Aggarwal, 2018).…”

Section: Introductionmentioning

confidence: 99%

Relationship between Trust in Knowledge Sharing and Business Innovation in Franchised Fast-food Outlets in Nairobi City County

Ondego¹,

Khayiya²,

Miricho³

2023

IJAEMR

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Based on the agency theory and the social exchange theory, the study determined the relationship between trust in knowledge sharing and business innovation in franchised fast food outlets in Nairobi City County. The significance of the study is to motivate single unit owners to join franchises, and help franchisees and franchisors reap the benefits of sharing knowledge to create competitiveness by embracing and sharing innovation. Target population was selected franchised fast-food outlets in Nairobi City County. A mix of descriptive research design and exploratory research was applied in conducting the study. Multistage sampling was used to select franchises and the sample was then distributed proportionally across each brand. The sample size was 180 staff from the 60 selected fast-food outlets in Nairobi City County. Data was collected through Interviews and questionnaires. Data was analyzed through inferential statistics such as regression analysis and Pearson correlation. The correlation analysis between trust and knowledge sharing showed that, trust is positively and significantly correlated to knowledge sharing in franchise outlets as indicated by 0.372 while p value 0.00 which is less than 0.05.The regression analysis between trust and knowledge sharing resulted to an R2coefficient of 0.138, which indicated that, there is a relationship between trust and knowledge sharing in franchised outlets. Further determination of variance was also performed; the findings indicated that, there was a significant effect between trust and knowledge sharing in franchised outlets. The p value was at 0.000 which is less than the p value of 0.05.

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Good faith in franchising

Cited by 10 publications

References 38 publications

“Conflict-performance assumption” or “performance-conflict assumption”: Insights from franchising

“Conflict-performance assumption” or “performance-conflict assumption”: Insights from franchising

Barriers to knowledge transfer of the franchisor to franchisee: an application in language schools

Relationship between Trust in Knowledge Sharing and Business Innovation in Franchised Fast-food Outlets in Nairobi City County

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