Toward an international code of franchising

Abstract

Purpose

This work proposes to test the C‐40 deontological code of collective orientation specifically for franchise associations. The literature review revealed a lack of studies about this type of codes.

Design/methodology/approach

This code adopts a semi‐normative approach in trying to standardize what form a deontological code of a franchise association should take. The study has been developed from an international perspective, making easier its spread and generalization. Furthermore, a novel methodology in this area has been applied to test the code: “The Experton Theory”.

Findings

As a consequence, from the review of ethical and deontological codes from franchise associations of 46 countries, some associations' statutes and the laws about franchising in some countries, 29 topics were identified. Additionally, 11 more have been added to these contents, making 40 items which conform with what should be integrated into whatever franchising deontological code.

Research limitations/implications

The main limitations of this work refer to the proposition and validation of some questions included in the C‐40 code. Specifically, some of them show opinion divergences of the experts' answers over 25 percent.

Social implications

The proposed code might be used as a background for franchise associations at an international level. It encourages the increase of ethical and business contents in the existing codes and, therefore, the improvement of the relationships among franchisers, franchisees and the rest of the stakeholders.

Originality/value

This study is focused on a scarcely treated topic in the literature: deontological codes in franchising. In addition, it has been developed from an international perspective, making its spread and generalization easier.

Citation

Gámez‐González, J., Rondan‐Cataluña, F.J., Diez‐de Castro, E.C. and Navarro‐Garcia, A. (2010), "Toward an international code of franchising", Management Decision, Vol. 48 No. 10, pp. 1568-1595. https://doi.org/10.1108/00251741011090333