Franchisees’ Websites and Concept Uniformity: A New Challenge for Franchisors

Abstract

International audienceThe current book on Nework Governance contributes to the literature by offering new perspectives on network goals and performance, inter-organizational learning and trust in alliances, corporate governance issues in cooperatives, governance of cross-border retail networks, contract design and governance innovations in cooperatives and fanchising.This paper aims to highlight the challenges associated with network uniformity and brand image for franchisors, more specifically when their franchisees set up and manage their own website. This practice has some impact on network uniformity which is a key concept in franchising. We analyze the presence of franchisees on the Internet of 471 networks, both in retailing and services, described in the 2011 franchise directory. We find that only 38 franchise networks are concerned about this practice. We use a qualitative approach based on multiple cases studies of these 38 franchise networks. It points out the different aspects of franchisees’ websites that can damage concept uniformity. Maintaining network uniformity when there are various websites set up and run by franchisees entails challenges to franchisors that are presented in this paper within a managerial perspective linked to technical and organizational know-how. Some insights from the legal perspective are also provided