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Building franchisee trust in their franchisor: insights from the franchise sector

Anthony Richard Grace (Asia-Pacific Centre for Franchising Excellence, Griffith University, Brisbane, Australia)
Lorelle Frazer (Asia-Pacific Centre for Franchising Excellence, Griffith University, Brisbane, Australia)
Scott K. Weaven (Department of Marketing, Griffith University, Gold Coast, Australia)
Rajiv P Dant (Division of Marketing and Supply Chain Management, Price College of Business, University of Oklahoma, Oklahoma, USA)

Qualitative Market Research

ISSN: 1352-2752

Article publication date: 11 January 2016

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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.

Keywords

Acknowledgements

Dedication: In memory of Professor Rajiv P. Dant, with thanks and with admiration.

Citation

Grace, A.R., Frazer, L., Weaven, S.K. and Dant, R.P. (2016), "Building franchisee trust in their franchisor: insights from the franchise sector", Qualitative Market Research, Vol. 19 No. 1, pp. 65-83. https://doi.org/10.1108/QMR-09-2014-0085

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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