Franchisor use of influence and conflict in a business format franchise system

Abstract

Purpose This study aims to examine the relationship between a franchisor's use of different types of persuasive communication to influence its franchisees and franchisee perceptions of conflict in the franchise relationship. Design/methodology/approach Multiple regression analysis of survey data collected from franchisees of a US‐based franchise system. Findings Data analysis indicates that a franchisor's use of requests, threats, and legalistic pleas is positively related to conflict in the franchisor‐franchisee relationship. These relationships are not moderated by franchisee dependence. Franchisee dependence, does however, negatively moderate the relationship between the franchisor's use of recommendations and conflict. The franchisor's use of information exchange and promises and conflict are not related. The results suggest that business format franchisors should use information exchange and promises and restrain from using requests, threats, and legalistic pleas to influence their franchisees. Recommendations should be used to influence franchisees who are highly dependent on the franchisor. Research limitations/implications Future research should validate the findings of this study using data collected from business format franchisees in different cultural environments. Originality/value This is the first empirical study to examine the relationship between a franchisor's use of different types of persuasive communication and conflict in the business format franchise setting.