How Can Regulation be Enhanced? New Perspectives on the Causes and Continuation of Franchising Conflict in Australia
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Author(s)
Weaven, Scott
Frazer, Lorelle
Giddings, Jeff
Year published
2009
Metadata
Show full item recordAbstract
Although federal Australian franchising sector regulation promotes franchise system disclosure and provides for mandatory conflict mediation, there is some concern that inequities exist within the conflict management process. As a result regulators are reviewing existing regulation and investigating alternative dispute resolution options in an attempt to proactively manage franchising conflict. Central to this process is identifying the sources of conflict in the franchising relationship. Conflict refers to the existence of deep underlying differences between involved parties that result in responses to potential or actual ...
View more >Although federal Australian franchising sector regulation promotes franchise system disclosure and provides for mandatory conflict mediation, there is some concern that inequities exist within the conflict management process. As a result regulators are reviewing existing regulation and investigating alternative dispute resolution options in an attempt to proactively manage franchising conflict. Central to this process is identifying the sources of conflict in the franchising relationship. Conflict refers to the existence of deep underlying differences between involved parties that result in responses to potential or actual obstructions that impede one or more parties from realising their goals. This inductive research extends the conflict literature in dyadic exchange relationships through investigating antecedent influences upon franchising conflict from the franchisor and franchisee perspectives. A total of 24 interviews was conducted with lawyers, mediators, brokers, franchisors, franchisee advocates, franchise consultants, franchising academics, franchisor industry representatives and franchising media representatives. The key findings suggest that a lack of due diligence is associated with the formation of unrealistic expectations which increases the potential for future relational conflict. Although franchising experience impacts upon operational approaches and conflict, the role played by third parties and market conditions both appear to exacerbate dissatisfaction in most franchise systems. The concept maps and preliminary conceptual models presented in this paper will be tested in a large quantitative survey of key franchising stakeholders in the near future.
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View more >Although federal Australian franchising sector regulation promotes franchise system disclosure and provides for mandatory conflict mediation, there is some concern that inequities exist within the conflict management process. As a result regulators are reviewing existing regulation and investigating alternative dispute resolution options in an attempt to proactively manage franchising conflict. Central to this process is identifying the sources of conflict in the franchising relationship. Conflict refers to the existence of deep underlying differences between involved parties that result in responses to potential or actual obstructions that impede one or more parties from realising their goals. This inductive research extends the conflict literature in dyadic exchange relationships through investigating antecedent influences upon franchising conflict from the franchisor and franchisee perspectives. A total of 24 interviews was conducted with lawyers, mediators, brokers, franchisors, franchisee advocates, franchise consultants, franchising academics, franchisor industry representatives and franchising media representatives. The key findings suggest that a lack of due diligence is associated with the formation of unrealistic expectations which increases the potential for future relational conflict. Although franchising experience impacts upon operational approaches and conflict, the role played by third parties and market conditions both appear to exacerbate dissatisfaction in most franchise systems. The concept maps and preliminary conceptual models presented in this paper will be tested in a large quantitative survey of key franchising stakeholders in the near future.
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Conference Title
2009 International Society of Francising 23rd Annual Conference Proceedings
Copyright Statement
© 2009 ISOF. Use hypertext link to access the publisher's website. The attached file is posted here in accordance with the copyright policy of the publisher, for your personal use only. No further distribution permitted.
Subject
Small Business Management