Understanding the dynamics of conflict within business franchise systems

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Title Understanding the dynamics of conflict within business franchise systems
Author Giddings, Jeff; Frazer, Lorelle; Weaven, Scott; Grace, Anthony
Journal Name Australasian Dispute Resolution Journal
Year Published 2009
Place of publication Australia
Publisher Lawbook Company
Abstract High levels of franchising density and impressive growth in both franchise units and sector turnover have seen Australia described as 'the franchise capital of the world'. Some 62,000 franchise units belonging to 960 franchise systems turned over $128 billion in 2005. In the Australian Franchising 2006 survey, 35% of franchisors reported being involved in substantial disputes with franchisees, posing questions in relation to both the nature of power sharing within franchising relationships and the suitability of current sector regulation. This article reports on research on franchising conflict conducted by Griffith University academics in conjunction with the Australian Competition & Consumer Commission. Causes of franchising conflict include system compliance, communication issues, misrepresentation concerns, intervention of third parties as well as profitability concerns. While mediation-type processes have generally been productive in managing franchising conflict, such processes will not always be suitable. A broader range of processes could be utilised, along with systems-based approaches.
Peer Reviewed Yes
Published Yes
Publisher URI http://legalonline.thomson.com.au/subscribed/static-fs/journals/ADRJ/LAWREP-020-ADRJ-JL-0024.pdf?sessionId=61dfbb5e0ade6d323598c7065c629ba4
Copyright Statement Copyright 2009 Thomson Legal & Regulatory Limited. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published
Volume 20
Issue Number 1
Page from 24
Page to 32
ISSN 1441-7847
Date Accessioned 2009-07-15
Language en_AU
Research Centre Griffith Institute For Tourism; Socio-Legal Research Centre
Faculty Arts, Education and Law
Subject Law and Legal Studies
URI http://hdl.handle.net/10072/28181
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

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