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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.

This paper, using a case study on Jibu, a water distribution chain that distributes bottled water in Africa, aims to underline the importance of social relationships and communication within franchise chains operating in the social sector in developing countries and their contribution to the clarification of the concept of social franchising.

The research is based on a case study of Jibu, a water distribution chain composed of 122 franchised units and 2,100 independent retailers. The primary data were gathered through an analysis of in-depth interviews with 67 people (Jibu co-founder, headquarters staff, franchisees, micro-franchisees and customers) in Uganda and Rwanda.

The findings showed that the extent and richness of social relationships and communication existing within the Jibu chain are not limited to top-down and build a feeling of belonging to a family. These social relationships and communication are key characteristics of social franchising.

This research can assist franchise experts, franchisors and franchisees to better assess the importance of social relationships and communication in social franchise chains in developing countries and help national and local governments better understand how franchising works in the social sector.

Franchising is not limited to hotels, restaurants and retail businesses. Franchising can be applied to businesses that have social goals, in addition to profit goals. For example, the Jibu franchise is a relevant and efficient solution to providing the African people with access to drinking water at an affordable resale price. This paper, thus, contributes to increasing the awareness of this franchising phenomenon in social sectors in developing countries and in Africa, in particular.

Access to drinking water is an important issue in many developing countries, above all in African countries. Franchised water services are an innovation in terms of a business model in developing countries with micro-treatment plants run by franchisees and small units run by micro-franchisees or retailers, both franchisees and micro-franchisees being local entrepreneurs.

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.

As franchisees are independent entrepreneurs, one important part of the business format that franchisors are not allowed to impose on their franchisees is resale prices. They are only allowed to indicate a recommended or a maximum price. This study aims to look further into the capabilities underlying the calculation of resale prices and suggests that price-setting is part of both the “business know-how” transferred to franchisees and the “organizational know-how,” that is, capabilities developed and kept at the franchisor level.

This study adopted a qualitative methodology with a total of 65 interviews, 19 with franchisors and 46 with franchisees, all operating in the French market.

The findings show that resale pricing is a process that involves know-how. The complexity of pricing leads to develop specialized and broad capabilities. The first type of know-how, i.e., business know-how transferred to franchisees, deals with operational implementation of recommended resale prices in the stores. The second type, i.e., organizational know-how, not transferred as a safeguard against opportunism, connects across other functions of the franchise chain such as R&D and communication.

This study confirms the existence and relevance of another kind of know-how apart from the business know-how that is transferred to the franchisees. Organizational know-how at the chain level, though often neglected, is a necessary determinant of sustaining a competitive advantage. This know-how is not transferred to the franchisees but contributes to the success and sustainability of the franchisor/franchisee relationship. Franchisors should thus work on improving their capabilities to better support their franchisees. Moreover, this study highlight the complexity and extreme importance of setting the right resale price.

Social franchise chains have social goals rather than – or in addition to – commercial or profit-making goals. But are these social goals, disclosed by social franchisors, aligned with the Sustainable Development Goals (SDGs) and, if so, which ones?

The authors examine the disclosure of SDG-related information on websites of 69 social franchise chains operating in Africa.

The authors' main findings show that social goals disclosed by social franchisors are aligned with certain SDGs that are general in nature and not just sector-dependent, except in the case of education.

The authors' paper contributes to the practice by providing examples of the types and varieties of social goals social franchisors can pursue. Moreover, entrepreneurs might be encouraged to launch their franchise concept as franchisors who contribute to SDGs at an international, national or regional level or to join franchise chains as franchisees who contribute to SDGs at the local level.

The authors' findings show the potential for social franchise chains in developing countries to target and contribute to achieving SDGs.

The authors' paper adds to the limited literature on SDGs and, more specifically, on the role of the private sector, in particular social franchisors, in targeting and achieving SDGs.

This paper aims to explore how the power of salient stakeholders involved in the green waste management of franchise chains can impact the ability of the chains to change their green practices.

This qualitative study is based on interview data from 19 franchisors and their head office staff operating in the fast-food sector in France where franchise chains have been ‘named and shamed’ as continuing to ignore waste management regulation.

The findings suggest that both the form and bases of power of different stakeholder groups have important implications for the implementation of green practices, even those required by law. The authors find that the franchisees’ central network position alters the ability of franchisors to directly engage in dialog, consult with, and educate key stakeholders, creating additional challenges for franchisors in the implementation process.

The qualitative nature of the study limits the extent to which the findings can be generalized. Future studies could develop an instrument to assess franchisor perceptions of stakeholder power.

The findings suggest that franchisors should consider carefully how they communicate changes to green practices to their franchisees to ensure not only their compliance but also their motivation to engage with those stakeholders with whom they have regular interactions. The findings can also help governments to better understand how to involve other stakeholders to ensure effective environmental legislation.

The study is the first, to the authors’ knowledge, to consider the role of stakeholders in the implementation of green practices in franchise chains. By examining franchise chains, this paper provides new insights into the role of an additional stakeholder, the franchisee, and enriches the literature on green practices in the hospitality sector.

The purpose of this paper is to explore independent small business owners’ perceptions of franchisees relationships with their franchisors, their fellow franchisees within the chain, their employees and their customers.

The authors use a qualitative approach and, more specifically, 26 in-depth interviews conducted with independent small business owners from various business sectors.

These independent small business owners perceive that franchisees have a dependency-based relationship with their franchisors; a competition-based relationship with their fellow franchisees; a rather complicated relationship with their employees; and a superficial relationship with their customers.

This study contributes to the franchising literature by presenting an outside-chain view of franchisees’ relationships with their franchisors, other franchisees, employees and customers.

The findings may have practical implications for franchisors, enabling them to better understand the concerns of independent small business owners as potential franchisee candidates.

The outside-chain view of franchisees’ relationships is innovative.

The purpose of this paper is to examine franchisee perception of company‐owned outlets within their network.

The paper uses a qualitative approach, based on 38 interviews of franchisees belonging to plural form networks from various industries.

The interviews show that franchisees generally perceive the advantages of the plural form in terms of network development and management, but they also perceive some limitations, mainly in terms of network culture and cohesion, as well as potential conflicts and costs.

Limitations mainly concern the exploratory nature of this research.

While they should keep on emphasising the benefits of the plural form, franchisors also have to reduce the perception of its limitations. They have to reinforce network culture and minimise internal conflicts.

The paper contributes to the existing literature on the plural form by using a franchisee‐based approach. In addition, contrary to most previous literature, it also highlights some limitations of the plural form.

The purpose of this paper is to develop a new model allowing the implementation of a benchmarking process that jointly measure the efficiency of franchise chains and determine their optimal organizational form.

The methodology is based on a non-econometric technique developed by management scientists on economic concepts for evaluating the performance of decision-making units and implementing a benchmarking process. An extended model is developed in the paper for evaluating the efficiency and determining the optimal percentage of company-owned outlets (PCO) of each franchise chain.

First, results showed that the PCO has a positive impact on franchise chain efficiency; even if other chain characteristics have a larger impact. Second, the optimization of the PCO allows for additional improvements in efficiency.

Even though this study has some limitations (e.g. sample and variable selection), it contributes to the literature on franchising by providing an approach allowing us to answer to the question of Shane (1998) on the optimal proportion of franchised units given other firm characteristics.

By developing a model that allows for the joint evaluation of franchise chain efficiency and optimal PCO, this study offers to franchisors a new benchmarking process allowing for both a competitive and functional benchmarking.

The originality of this research can be found in the new model developed for allowing a benchmarking of franchise chains that allows an evaluation of efficiency jointly with a determination of their optimal organizational form.

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.