Franchisee advisory councils and justice: franchisees finding their voice

ABSTRACT

Drawing on the four dimensions of justice: distributive, procedural, interactional, and informational justice, this research examines justice as an antecedent of franchisee performance. Empirical research tested a theoretical model using structural equation modelling techniques. Our results show significant support for two of the four dimensions: distributive and interpersonal justice. Furthermore, our model tested, and found support for the moderation of franchisee membership in the Franchisee Advisory Council (FAC). Perceptions of distributive justice is considered the most important contributor to franchisees’ perceived performance in franchise systems that endorse and actively participate with the FAC through membership. Thus, one major implication of this research is the moderation effect of membership of the FAC on the influence of justice on franchisees’ perceptions of positive performance outcomes. This speaks to the FAC’s particular importance for facilitating best practice, strong, and financially viable franchise systems.

KEYWORDS:

• Justice
• franchising
• performance
• group Dynamics
• ethics

Acknowledgments

In memory of Professor Rajiv P. Dant, with thanks and with admiration

Informed Consent

Informed consent was obtained from all individual participants included in the study.

Research involving human participants

All procedures performed in studies involving human participants were in accordance with the ethical standards of the institutional and/or national research committee and with the 1964 Helsinki declaration and its later amendments or comparable ethical standards. GU Ethics approved ethical clearance number: MKT/11/13/HREC.