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Introduction

In: Franchisees as Consumers

Author

Listed:
  • Jenny Buchan

    (University of New South Wales)

Abstract

In this chapter, the economic importance of franchising is set out. The franchise, franchisor, franchisee, franchise network and franchise system are introduced and defined. The unresolved challenges that confront regulators of franchising are presented. Franchisees are clearly vulnerable at numerous junctures which are introduced in this chapter. Broadly, the causes are asymmetry, the nature of the franchise agreement as a standard form yet relational contract, and the absence of corporate governance mechanisms between franchisor and its franchisees. Weaknesses in the franchise model are brought into starkest relief if the franchisor becomes insolvent.

Suggested Citation

  • Jenny Buchan, 2013. "Introduction," Springer Books, in: Franchisees as Consumers, edition 127, chapter 0, pages 1-9, Springer.
    • Handle: RePEc:spr:sprchp:978-1-4614-5614-8_1
    DOI: 10.1007/978-1-4614-5614-8_1
    as

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