The Commitment-trust theory as a franchising relationship foundation: Case study evidence from Australia and New Zealand

Abstract

This paper provides an in-depth qualitative investigation into the nature of the franchisee/franchiser relationship. The view that stable franchising relationships are formulated with the presence of trust and commitment is further enhanced and developed upon Morgan & Hunt's (1994) foundational commitment-trust theory. Primary research in the form of face-to-face interviews with franchisees from four franchise systems was conducted using within and across case analysis. This exploratory research attempts to enhance franchising knowledge by shifting traditional transactional marketing (TM) focus toward relationship marketing (RM). The emphasis on relationships as apposed to transactional exchanges within franchising not only extends existing franchising literature but provides practical insight into the importance of stable personal relationships between franchisers and franchisees.