How Can Regulation be Enhanced? New Perspectives on the Causes and Continuation of Franchising Conflict in Australia

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Title How Can Regulation be Enhanced? New Perspectives on the Causes and Continuation of Franchising Conflict in Australia
Author Weaven, Scott Keith W; Frazer, Lorelle; Giddings, Jeffrey Michael
Publication Title 2009 International Society of Francising 23rd Annual Conference Proceedings
Editor Mark Grunhagen
Year Published 2009
Place of publication Florida
Publisher H. Wayne Huizenga School of Business and Entrepreneurship
Abstract 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.
Peer Reviewed Yes
Published Yes
Publisher URI http://www.huizenga.nova.edu/ExecEd/ISOF/Conferences.cfm?Y=2009
Copyright Statement Copyright 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.
Conference name 23rd International Society of Franchising Conference
Location San Diego
Date From 2009-02-12
Date To 2009-02-14
URI http://hdl.handle.net/10072/29321
Date Accessioned 2009-09-10
Date Available 2010-08-31T07:47:02Z
Language en_AU
Research Centre Griffith Institute For Tourism; Socio-Legal Research Centre
Faculty Griffith Business School
Subject Small Business Management
Publication Type Conference Publications (Full Written Paper - Refereed)
Publication Type Code e1

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