Causes of Conflict and how to resolve it Lorelle Frazer Alan Bates Grifith University Lenards.

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Presentation transcript:

Causes of Conflict and how to resolve it Lorelle Frazer Alan Bates Grifith University Lenards

Pre-entry Lack of due diligence Mid-term Franchisor management practices Random External influences Origin of Conflict

FRANCHISEE PERCEPTIONS

Information search I should have been more diligent in gathering information, prior to entering the franchising agreement.

Information dissemination My franchisor withheld important information from me prior to entering into the franchising agreement.

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.

Expectations confirmation My expectations of franchising were very accurate.

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

Trust I can rely on my franchisor to keep the promises he/she makes to me.

Griffith Business School The financials the franchisor provided were inaccurate – they were doctored

Communication In this franchising relationship communications are complete.

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

Conflict resolution Conflict is dealt with openly in this franchise.

Perceived support Help is readily available from my franchisor when I have a problem.

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!

Relationship satisfaction Overall, I consider my relationship with my franchisor to be healthy.

Perceived conflict There is a lot of conflict in the relationship between me and my franchisor.

Causes of conflict

Conflict resolution methods

Conflict outcomes

Need for better pre-entry education Free eClasses One per day Multi media Self assessment 5 days Certificate

Dispute Resolution