Franchisee Associations: Strategic Focus or Response to Franchisor Opportunism

Abstract

This article examines some of the antecedents, processes, and effects of independent franchisee associations (IndFAs) and the reactions of franchisors to their organization. Specifically, we draw on various literatures to pose propositions relating to the following research questions: (a) Are there fundamental differences between associations whose focus is based on disagreements relating to strategic actions of the franchisor and those whose focus is perceived opportunistic behavior on the part of the franchisor? (b) Does the way these IndFAs are treated by the franchisor—after inception—affect members' identification with the group and/or franchisor? (c) Does the existence of a franchisee advisory council influence the willingness of a franchisor to legitimize an IndFA? (d) How does the size of the IndFA influence identification? We then present a conceptual model and use two illustrative examples from the business literature to explore our propositions.

KEYWORDS:

• advisory council
• franchising
• identification
• identity
• independent franchisee association

Notes

¹The Five Concepts Council recently became the Four Concepts Council when Pizza Hut's IPHFHA left to join a separate cross-brand organization.

An earlier version of this article under a different title was presented at the 2009 International Society of Franchising Conference, San Diego, California.