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Log In / Register | May 23, 2013

Franchise Conflict Research: Five Main Causes

For fans of quality franchising here are findings from Australia on what can go wrong.  The research was conducted by Professor Lorelle Frazer at the Asia Pacific Centre for Franchising Excellence.

While disgruntled franchisees around the world might want to add to this list, it should be recognized that this information pertains to causes that do not involve deliberate misrepresentation.

We need to recognise franchisor-franchisee conflict is not only inevitable, but a necessary part of a dynamic business relationship  Professor Lorelle Frazer

Fiona Taylor mentions that the research sought the perspectives of both franchisors and franchisees.

The 5 main causes of conflict;

  • Lack of due diligence by franchisors and franchisees
  • Third Parties / Franchisee Recruitment
  • Communication
  • Market Conditions
  • Franchisee Personal Conditions

Our research reveals a greater awareness of the roles in the franchise relationship can assist the franchisor and franchisee to develop greater levels of trust and commitment, and minimise conflict.

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