Franchisee perceived relationship value

Abstract

Purpose -The paper seeks to develop a conceptualization of franchisee perceived relationship value (FPRV), defined as the trade-off between perceived net worth of tangible and intangible benefits and costs to be derived over the lifetime of the franchisor-franchisee relationship, as perceived by the franchisee, taking into consideration the available alternative franchise relationships. Design/methodology/approach -A survey of existing literature provided the relevant constructs and concepts for developing a conceptual framework of FPRV. Findings -The behavioral aspects of the franchise relationship are explored from the franchisee's perspective, providing an alternative viewpoint of the franchise relationship. Practical implications -The paper affords a useful foundation for making decisions in a franchise relationship, such as the choice of a new franchisee. This entails a comparison of an existing franchisee about which much is known versus a new franchisee about which less is known. FPRV offers a constructive lens to better evaluate this decision and help frame questions concerning the value of social elements within the relationship. Originality/value -This work is among the first to examine franchisee relationship value and consequences from the franchisee's perspective. Research propositions surrounding the franchisee's behavioral expectations in the relationship are offered, and serve to guide further research in this area.

Economic Sustainability in Franchising: A Model to Predict Franchisor Success or Failure

“…They can achieve this goal in two ways: by developing trustful relationships [27][28][29] or by avoiding conflict with franchisees [7,[30][31][32]. To analyze how franchisors develop trustful relationships, studies have focused on measures of relationship quality [33], the franchisee's perceived relationship value [26], the moderators of the relationship [34], interpretation and perception asymmetries between franchisor and franchisee [35], the control mechanisms adopted to avoid free-riding and opportunistic behaviors [36], and the role of the wider business network [37].…”

Percepções de valor e elementos estruturantes das microfranquias

“…O franqueado possui um maior nível de satisfação com o franqueador devido ao ganho de habilidade e conhecimentos providos no suporte ao franqueado (Whittaker, Ledden, & Kalafatis, 2007). Entretanto, mesmo que se trate de uma temática de relevância ao sistema de franchising, são poucos os estudos que aprofundam a percepção de valor dos serviços providos aos franqueados (Chiou, Hsieh, & Yang, 2004;Grace & Weaven, 2011;Harmon & Griffiths, 2008;Huang & Phau, 2009).…”

Assessing the intangibles transferred in franchise businesses

“…3 Therefore, the upfront fee paid is considered to be the value of franchise business 4 intangibles, and this value is associated with the firm's capabilities, the brand name 5 image and the firm's goodwill, all of which are intangible resources (Caves and Murphy, 6 1976).…”