IDEAS home Printed from https://ideas.repec.org/a/etr/series/v1y2010i1p010-017.html
   My bibliography  Save this article

Franchisees` level of satisfaction with the franchise contract

Author

Listed:
  • Gerhard, J. van Wyk

    (Faculty of Management Sciences, Tshwane University of Technology, South Africa, Private Bag 680 Pretoria 0001 Republic of South Africa)

  • Johan W. de Jager

    (Faculty of Management Sciences, Tshwane University of Technology, South Africa, Private Bag 680 Pretoria 0001 Republic of South Africa)

Abstract

Franchisees` often complain that franchisors do not meet their needs, and are generally viewed as being unhappy with their franchise agreements. The aim of the paper is to investigate the level of satisfaction of franchisees with regard to the elements of individual franchise concepts, managed by the franchise agreement. Including details of the standard franchise agreement: terms of the contract, rights and obligations, training programs, operational support provided by the franchisor, products, pricing, promotions, distribution, and franchise fees. Data was collected by means of a self-administrated questionnaire that was sent to the selected population. The data represents two groups of the same franchise, namely franchisees operating two years and less as franchisees and franchisees that operate longer than two years as franchisees and consider the extent to which selected contract elements are viewed differently. Findings indicate that both groups of franchisees had a high level of satisfaction with the elements of the franchise contract with the exception of identified opportunities that could be developed in order to increase the franchisees level of satisfaction with the franchise agreement. In general, the franchisor also had a high level of marketing orientation. Further research is needed to ensure that the franchisor’s current product ranges will be more competitive if compared with other franchise concepts. The franchisor should attend to the improvement of product research, new product development, pricing strategies, packaging and product planning. Key words: Franchisee satisfaction, marketing-orientation, franchisee and franchisor, franchise agreement, franchise legislation.

Suggested Citation

  • Gerhard, J. van Wyk & Johan W. de Jager, 2010. "Franchisees` level of satisfaction with the franchise contract," E3 Journal of Business Management and Economics., E3 Journals, vol. 1(1), pages 010-017.
    • Handle: RePEc:etr:series:v:1:y:2010:i:1:p:010-017
    as

    Download full text from publisher

    File URL: http://www.e3journals.org/cms/articles/1330664494_Wyk%20and%20Jager.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. N/A, 2002. "Documents," South Asian Survey, , vol. 9(2), pages 287-304, September.
    2. A. Jolibert & P. Jourdan, 2005. "Marketing Research," Post-Print halshs-00095262, HAL.
    3. N/A, 2002. "Documents," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 3(2), pages 336-337, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fadle M. Naqib, 2003. "Economic aspects of the Palestinian-Israeli conflict: the collapse of the Oslo Accord," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(4), pages 499-512.
    2. Roson, Roberto & Sartori, Martina, 2013. "Trade-offs in water policy: System-wide implications of changing water availability and agricultural productivity in the Mediterranean economies by 2050," Conference papers 332416, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Xunzhou Ma & Shiqiu Zhang & Quan Mu, 2014. "How Do Residents Respond to Price under Increasing Block Tariffs? Evidence from Experiments in Urban Residential Water Demand in Beijing," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(14), pages 4895-4909, November.
    4. Victoria, F.B. & Filho, J.S. Viegas & Pereira, L.S. & Teixeira, J.L. & Lanna, A.E., 2005. "Multi-scale modeling for water resources planning and management in rural basins," Agricultural Water Management, Elsevier, vol. 77(1-3), pages 4-20, August.
    5. Alejandra Trejo, 2011. "Territorial Competitiveness In A Globalised Economy: The Role Of Transport Costs And Liberalisation," ERSA conference papers ersa10p178, European Regional Science Association.
    6. Alejandra Trejo Nieto, 2010. "The aftermath of openness and integration in the Mexican manufacturing," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 30(1), pages 23-44, February.
    7. Christophe Ramaux, 2005. "Les emplois ne sont pas plus instables : explications et incidences sur la régulation de l'emploi," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00801412, HAL.
    8. Martha López & Juan David Prada & Norberto Rodríguez, 2009. "Evidence for a financial accelerator in a small open economy, and implications for monetary policy," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 27(60), pages 12-45, December.
    9. Christophe Ramaux, 2005. "“Flexicurity” or “lifelong learning”: a trompe-l’œil solution to unemployment ? ["Sécurité sociale professionnelle" ou "sécurité emploi-formation" : une solution au chômage en t," Post-Print halshs-00196091, HAL.
    10. Covaleski, Mark A. & Dirsmith, Mark W. & Samuel, Sajay, 2003. "Changes in the institutional environment and the institutions of governance: extending the contributions of transaction cost economics within the management control literature," Accounting, Organizations and Society, Elsevier, vol. 28(5), pages 417-441, July.
    11. Covaleski, Mark A. & Dirsmith, Mark W. & Rittenberg, Larry, 2003. "Jurisdictional disputes over professional work: the institutionalization of the global knowledge expert," Accounting, Organizations and Society, Elsevier, vol. 28(4), pages 323-355, May.
    12. Olcay Çetiner, 2010. "Examining The Firm Buildings Of The News Printing Sector From The Point Of Architecture And Construction," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    13. Cristina Silvia Nistor, 2010. "An Empirical Research About The Contain Of Balanced Scorecard Concept In Public Sector," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    14. Laurentiu Mincu & Thorsten Gruber, 2013. "Exploring the Factors Influencing the Intention to Use Self-Service Technologies: An Eastern European Perspective," The International Journal of Economic Behavior - IJEB, Faculty of Business and Administration, University of Bucharest, vol. 3(1), pages 59-84, December.
    15. Chun-Hsiung Liao & I Hsieh, 2013. "Determinants of Consumer’s Willingness to Purchase Gray-Market Smartphones," Journal of Business Ethics, Springer, vol. 114(3), pages 409-424, May.
    16. Mýsra Çaðla Gül, 2009. "Relative Effects of Marketing Effectiveness Dimensions on Firm Performance: An Empirical Analysis with a Multi-Industry Sample," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 23(1+2), pages 37-53.
    17. Agnieszka Chidlow & Anna Morgan-Thomas & Pervez N. Ghauri, 2010. "Data Collection Procedures Equivalence in International Business Research," William Davidson Institute Working Papers Series wp977, William Davidson Institute at the University of Michigan.
    18. Adrian Grosanu & Paula Ramona Rachisan, 2010. "Challenges Of The Auditing Profession In The Context Of Economic Crisis," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    19. Athina-Evera Qendro, 2015. "Albanian and UK Consumers’ Perceptions of Farmers’ Markets and Supermarkets as Outlets for Organic Food: An Exploratory Study," Sustainability, MDPI, vol. 7(6), pages 1-26, May.
    20. Barbara Cater, 2007. "Trust and Commitment in Professional Service Marketing Relationships in Business-to-Business Markets," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 5(4), pages 371-390.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:etr:series:v:1:y:2010:i:1:p:010-017. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Andrew Godwin (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.