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Causes of Conflict and how to resolve it Lorelle Frazer Alan Bates Grifith University Lenards
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Pre-entry Lack of due diligence Mid-term Franchisor management practices Random External influences Origin of Conflict
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FRANCHISEE PERCEPTIONS
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Information search I should have been more diligent in gathering information, prior to entering the franchising agreement.
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Information dissemination My franchisor withheld important information from me prior to entering into the franchising agreement.
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Griffith Business School I didnt know I would have to spend an extra $50,000 to update my store. Cabinets have to be the correct colour, Lights can no longer be fluoro, etc. I didnt know I would have to spend an extra $50,000 to update my store. Cabinets have to be the correct colour, Lights can no longer be fluoro, etc.
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Expectations confirmation My expectations of franchising were very accurate.
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Griffith Business School I knew it would be tough... But it didnt click that I would have to start work at 4 am every day I knew it would be tough... But it didnt click that I would have to start work at 4 am every day
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Trust I can rely on my franchisor to keep the promises he/she makes to me.
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Griffith Business School The financials the franchisor provided were inaccurate – they were doctored
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Communication In this franchising relationship communications are complete.
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Griffith Business School My franchisor doesnt resolve issues but instead will give an explanation and finish by saying there will be no more communication on this issue
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Conflict resolution Conflict is dealt with openly in this franchise.
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Perceived support Help is readily available from my franchisor when I have a problem.
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Griffith Business School We pay a 20% royalty for nothing – no training and no marketing! We pay a 20% royalty for nothing – no training and no marketing!
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Relationship satisfaction Overall, I consider my relationship with my franchisor to be healthy.
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Perceived conflict There is a lot of conflict in the relationship between me and my franchisor.
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Causes of conflict
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Conflict resolution methods
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Conflict outcomes
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Need for better pre-entry education www.franchise.edu.au Free eClasses One per day Multi media Self assessment 5 days Certificate
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Dispute Resolution
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