Abstract:
The ability of a franchisor to sustain a productive working relationship with its franchisees over
time has been shown to ensure the continued success of the franchise system. This involves
developing a strong and mutually beneficial relationship between the parties. This study sought
to understand how this relationship could be damaged or irreparably affected due to a breakdown
between the franchisor and the franchisee. Improving this relationship would allow for a more
sustained commercial arrangement between the parties, reducing the cost associated with early
contract termination and de-franchising. A multiple case study approach was used as the
methodological framing for this study. The sample group consisted of de-franchised franchisees
who had prematurely cancelled a quick-service restaurant franchise contract. A snowball
sampling technique was used, and information was gathered using semi-structured interviews
and analysed using ATLAS.ti. Seven themes were identified and used to construct a conceptual
model that informs the nature of a lasting and mutually beneficial franchising relationship. This
study and the resulting model are valuable for franchisors in helping to select the most appropriate
franchisees and ensure that the investment made into quick-service restaurant franchise brands is
supported throughout the franchise relationship.
