Search results

The aim of this article is to provide solutions to protect the weaker party in management and distribution contracts, especially in the field of franchising.

The paper is based on a review of literature, legislation and practices concerning management and franchise contracts. The regulation of this field at a national level consists of laws that are both private and mandatory in nature. Certain questions are raised concerning the obligatory nature of regulations when applied to the management of international franchise contracts.

This article studies the question of whether the imperative application of laws to international contract management is appropriate. These contracts are concluded through the form of adhesion contracts, which have been prewritten by the dominant party and by which the adherent, the distributor, the franchisee or the agent, are placed in a weaker legal position. Considering the absence of international tuitive rules, this article suggests a way to guarantee the protection of parties in a weaker position.

This research provides entrepreneurs, managers and other members of the business community with legal tools and mechanisms for the protection of the franchisee's position.

This approach may well be helpful in finding solutions to legal issues that are of great importance in the negotiation of service contracts, as a way to overcome the difficulty of finding solid arguments to extend the rules that protect consumers and workers in service agreements.

For a predetermined form of business entry, the international market research process for selecting country markets requires the research questions and research process to be tailored to the entry mode. Retail business franchisors researching potential international markets must not only research market and demand conditions but also explicit issues related to partner selection, the business system's need for adaptation and contract development, often in different cultural and legal contexts. The paper aims to propose a framework that identifies the research issues and a process for implementing a retail business franchise system into international markets.

The need for a tailored approach is established by drawing from the business franchising and international market research literature. Critical issues that may face franchisors and potential partners are ordered into a framework that can be used to guide decision‐making of the parties involved.

The research framework seeks to qualify potential partners, adjustments that may be required to the business system for a specific market and parameters for the contract that will bear on the investment return. The three‐step market research process offers a prescriptive approach that integrates market selection with the entry mode.

The proposed framework encompasses all potential parties. It offers a checklist of potential problems as well as a process for negotiating through to an outcome that strengthens the likelihood of a successful transfer.

This study aims to provides the insights on the advantages and disadvantages of international franchising and licensing from the perspectives of legal and business considerations in the Gulf Cooperation Council (GCC).

Using a quantitative research approach, the authors conducted a survey with 150 business owners and franchisees in the GCC and analyzed the data using descriptive statistics, structural equation modeling and frequency analysis.

The findings reveal that while international franchising and licensing offer significant benefits for business expansion and revenue growth, they also pose risks related to legal compliance, cultural differences and intellectual property protection. Indeed, the results of this study provide valuable insights into the advantages and disadvantages of international franchising and licensing in the GCC from both legal and business perspectives.

There is limited research on the legal and business perspectives of international franchising and licensing in the GCC. This study contributes to the literature by providing a comprehensive analysis of the legal and business perspectives of international franchising and licensing in the GCC.

The subject of resale pricing is a hot topic in franchising, due to its links with chain homogeneity and franchisee autonomy. The franchisee is bound by current legislation and regulations, in addition to respecting the franchise contract clauses, to the extent that they are lawful, and potentially opposing contentious professional practices. Focusing on resale prices, we cover these three perspectives, that is, legal, contractual, and professional constraints, using a dual approach based on managerial and legal perspectives and illustrating our arguments using examples from European and French cases.

We illustrate our arguments using examples from European and French cases.

We pointed out that the ban on the practice of imposed resale prices presents several advantages (e.g., integrity of franchise chains, chain’s commercial dynamism).

Our paper contributes to the stream of franchising literature dealing with resale prices.

Our paper can be viewed by franchisors, franchise experts, franchisees, and franchisee candidates as a synthesis of the impact of European and French regulations on resale price-based practices to be adopted in franchise chains. It also highlights practices to be avoided in order to prevent potential conflicts.

We use a dual approach based on managerial and legal perspectives to explore resale prices in the context of franchising.

The relational nature of franchising flowing from the contract between franchisor and franchisee which enshrines a close, continuing relationship raises the issue of good faith. While there are academic papers analyzing good faith, these do not capture the practical understanding and expression of the concept and the manner and application in which it operates in the real world of franchising. The purpose of this paper is to assess how good faith is defined and understood by franchise practitioners – franchisees, franchisors and their legal advisors.

The authors have adopted a qualitative approach by conducting and analyzing a series of 18 in-depth interviews with franchisees, franchisors and lawyers specializing in franchising.

The findings show that good faith is particularly important in franchising because of the disparity in the knowledge and power of the parties. They suggest that good faith is not only a legal notion but also a notion that is linked to the personal relationship between the franchisor and its franchisees. It then plays an important role in terms of management of this relationship and of the system as a whole. Moreover, they demonstrate that there is not one single shared understanding of good faith amongst franchising practitioners. Indeed, franchisees, franchisors and specialist franchise lawyers suggested that good faith can refer to transparency, trust, loyalty, fairness and equity amongst the franchisees, fair play, frankness, respect, ethics, kindness, “best efforts” and personalities.

The originality of the research lies in the fact that good faith is examined through the voice of franchising practitioners who explain how they define and understand good faith rather than through a detached academic lens.

The purpose of this paper is to examine whether operating countries influence restaurant franchising system performance and what would be an optimal international franchise proportion.

The authors observed ten publicly traded franchise firms that operated between 1995 and 2015. Data analysis is conducted through a generalized linear model (GLM) of panel data.

The model confirms a curvilinear U-shaped relationship between international franchise expansion and firm performance, similar to domestic franchising. The authors found that international franchisors have a higher optimal franchise proportion than domestic franchisors. The authors did not find that operating countries influence firm performance.

This study contributes to franchising literature by expanding limited empirical studies on international franchising. It provides practitioners with a new optimal franchise proportion at the international level.

The purpose of this paper is to offer a novel perspective on resale pricing in franchising, i.e. from a franchisee perspective, by combining legal and managerial considerations in the European context. The objective is to assess franchisee perceptions regarding resale pricing in their chains.

The authors adopt a qualitative approach and use 46 in-depth interviews with franchisees covering retail and service industries in the French market.

Many of the interviewed franchisees believe that joining a franchise chain involves respecting the recommended resale prices. For some of the franchisees, in link with the chain uniformity, imposing uniform resale prices throughout the chain represents a strength, because customers who visit different stores within the franchise chain expect to find consistent pricing. Moreover, many franchisees consider that their franchisors have some know-how that they use to set correct resale prices, taking into account the profit margin.

This research contributes to the literature on resale pricing in franchising, as well as the franchising literature in general, by combining legal and managerial considerations, adopting a franchisee perspective, covering retail and service industries and focusing on French and European markets.

This research can be viewed by franchise experts, franchisors, franchisees and franchisee candidates as a synthesis of resale price-related legal aspects, adopted practices and potential conflicts in franchise chains in the French market. It also highlights price-related practices to be avoided to prevent potential conflicts.

The subject of resale pricing in franchise chains is a hot topic, because of its link with customer attraction, chain uniformity, franchisor know-how, franchisee autonomy and the legal dimension.

The authors conduct a structured analysis of the literature on the determinants of economic and financial franchise performance and develop an integrative framework that unifies the literature from franchisor as well as franchisee perspectives.

53 relevant research articles on economic and financial franchise success published between 1976 and 2020 were identified. After providing an overview of the empirical methods and theoretical perspectives found in the literature, an original classification system of franchise success determinants was developed.

More than 50 different variables impacting economic or financial franchise success were identified and grouped into ten distinct categories. The most impactful categories are the franchise relationship, franchisee characteristics and capabilities, franchisor variables and the franchise environment. The study’s integrative framework illustrates not only the impact of these factors on franchise success, but also reveals which areas require more attention.

As the study focused on understanding the determinants of franchise success, any measures related to franchise failure were excluded. Also, the role of venture capital and stock market listing as growth strategies in the franchise sector were excluded.

The study’s framework shows how the management of franchise success is complex and that franchise relationship, franchisee and franchisor variables as well as the franchise context need to be taken into account. It illustrates that there is a hierarchy with which these determinants should be prioritized.

The article proposes the first systematic review of the literature on the determinants of economic and financial franchise success. The contribution offers both, researchers and practitioners, new and useful insights for future knowledge development in the field.

Drawing on an outside-in marketing perspective, this paper aims to outline the development, implementation, evaluation and reflection of a real-world entrepreneurship education (EE) intervention with cognitive, affective and ultimately behavioural objectives.

A specific and uniform EE program specifically targeted to current “would be” entrepreneurs who were investigating the franchising business model was developed, focusing on the behavioural outcomes. The effectiveness of the EE intervention was evaluated using a quasi-experimental research design, which involved franchisees who had not participated in the EE intervention (control group) and franchisees who had participated in the EE intervention (experimental group). The administration of the national on-line survey yielded a total of 520 responses (194 in the experimental group and 326 in the control group).

The planning process in the pre-intervention stage included situation analysis, objective setting and decisions in relation to the communication strategy, i.e. content and mode. The effectiveness of the EE intervention was evaluated in the post-intervention stage. The findings indicate that EE intervention resulted in participants’ positive cognitive, affective and behavioural outcomes such as performance and relationship management. Finally, following a reflection process, additional elements covering topics related to work-life balance were incorporated into the module pertaining to an individual’s suitability to become a franchisee.

This paper proposes a conceptual framework that represents an outside-in EE approach whereby problems, audiences, objectives and communication strategies (content and method) are strategically intertwined to produce relevant, measurable and diagnostic behavioural outcomes. The EE intervention can also improve the B2B relationship between actors in a business network.

As international retailers continue to employ franchising as a major method of market entry, the control of these international retail franchise networks becomes of significant importance. The aim of this paper is to examine the methods by which UK‐based international fashion franchisors control franchisees and their international franchise businesses.

The paper employs a qualitative methodology and a multiple case design. Six UK‐based fashion retailers with international franchise operations form the empirical basis of the study.

The franchise contract, support mechanisms, franchise partner selection, the franchise relationship and the use of master/area franchising were found to be the major methods by which international retail franchisors exert control over their franchise networks. While coercive and non‐coercive sources of power were identified in the form of the franchise contract and support mechanisms, the paper also identifies sources of relationship power and organisational power.

The paper provides practical information to existing international franchisors and those firms considering the move into the international marketplace via the franchise mode of operation. By highlighting additional sources of power in the form of organisational and relationship power, franchisors are offered further means by which to control their international businesses than hitherto identified in the international franchise literature.

Traditional franchise research suggests that there is a dichotomy in the sources of power available to franchisors, that is, coercive or non‐coercive sources of power. While acknowledging the existence and importance of these sources of power and their related methods of control, this paper adds further dimensions to the academic debate by introducing relationship power and organisational power. Therefore, franchise partner selection, the franchise relationship and the use of master/area franchising emerge from the qualitative findings as further control mechanisms available to international retail franchisors.