causes of conflict and how to resolve it lorelle frazer alan bates grifith university lenards
TRANSCRIPT
Causes of Conflictand how to resolve it
Lorelle Frazer Alan Bates Grifith University Lenard’s
•Pre-entry
•Lack of due diligence
•Mid-term
•Franchisor management practices
•Random
•External influences
Origin of Conflict
FRANCHISEE PERCEPTIONS
A2 - Information search
Agree / Strongly Agree34%
Neutral28%
Disagree / Strongly Disagree
38%
Information search“I should have been more diligent in gathering information,
prior to entering the franchising agreement.”
A6 - Information dissemination
Agree / Strongly Agree18%
Neutral16%
Disagree / Strongly Disagree
66%
Information dissemination
“My franchisor withheld important information from me
prior to entering into the franchising agreement.”
Griffith Business School
I didn’t 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 didn’t 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 .
B2 - Expectations confirmation
Agree / Strongly Agree47%
Neutral26%
Disagree / Strongly Disagree
27%
Expectations confirmation
“My expectations of franchising were very accurate.”
Griffith Business School
I knew it would be tough...But it didn’t click that I would have to start
work at 4 am every day
I knew it would be tough...But it didn’t click that I would have to start
work at 4 am every day
B7 - Trust
Agree / Strongly Agree52%
Neutral18%
Disagree / Strongly Disagree
30%
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’
The financials the franchisor provided were inaccurate – they were
‘doctored’
B11 - Communication openness
Agree / Strongly Agree41%
Neutral24%
Disagree / Strongly Disagree
35%
Communication “In this franchising relationship communications are complete.”
Griffith Business School
My franchisor doesn’t resolve issues but instead will give an explanation and finish
by saying ‘there will be no more communication on this issue”
My franchisor doesn’t resolve issues but instead will give an explanation and finish
by saying ‘there will be no more communication on this issue”
B14 - Conflict resolution
Agree / Strongly Agree47%
Neutral21%
Disagree / Strongly Disagree
32%
Conflict resolution“Conflict is dealt with openly in this franchise.”
C3 - Perceived support
Agree / Strongly Agree59%
Neutral19%
Disagree / Strongly Disagree
22%
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!
C11 - Relationship satisfaction
Agree / Strongly Agree55%
Neutral20%
Disagree / Strongly Disagree
25%
Relationship satisfaction“Overall, I consider my relationship with my franchisor to be healthy.”
C13 - Perceived conflict
Agree / Strongly Agree15%
Neutral11%
Disagree / Strongly Disagree
74%
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
www.franchise.edu.au
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