Building franchisee trust in their franchisor: insights from the franchise sector. Issue 1 (11th January 2016)

• Record Type: Journal Article
• Authors: Grace, Anthony Richard; Frazer, Lorelle; Weaven, Scott K.; Dant, Rajiv P
• Is Part Of: Qualitative market research. Volume 19:Issue 1(2016)
• Page Start: 65
• Page End: 83
• Publication Date: 2016-01-11
• Subjects: Interviews -- Relationship -- Franchising -- Trustworthiness -- Trust -- Agency; Marketing research -- Periodicals; 658.8305
• DOI: 10.1108/QMR-09-2014-0085
• Languages: English
• ISSNs: 1352-2752

Abstract

Abstract : Purpose: – The purpose of this research is to identify the critical determinants of a franchisee's trust in their franchisor. Design/methodology/approach: – A qualitative approach was used, and 30 interviews were conducted with franchising participants. The first phase of the research consisted of exploratory interviews with franchising experts (franchise lawyers, accountants, consultants, mediators and bankers), and the second phase consisted of semi-structured interviews with franchisees and franchisors across two franchise systems. Findings: – The research revealed five critical determinants of a franchisee's trust in their franchisor: franchisee's engagement in the system, franchisee's confidence in the system, franchisee's perception of a strong team culture, franchisee's perception of franchisor competence and franchisee's perception of franchisor character. Practical implications: – The research provides insight into how the aforementioned components can be developed within a franchise system to build franchisee trust. The paper also concludes with four practical recommendations that can be integrated within a franchise system to increase levels of franchisee trust. Originality/value: – This research builds on prior research into franchisee trust, providing an original contribution to the literature through the development of a practical model, showcasing critical determinants of a franchisee's trust in their franchisor.