Exploring the Franchisor-Franchisee Relationship

Abstract

In the past 40 years, the franchising system has undergone a remarkable expansion, increasingly retaining the attention of economy and service management researchers. A recurring question relates to the sources of competitive advantage that a franchise network may have. This chapter intends to contribute to the debate based on the fundamentals of the resource/competence-based view, and applying the reflection to the case of the logistical service. The aim is to identify how and why supply chain resources and skills are deployed by franchisors to retain their franchisees thanks to a high level of service quality and therefore avoid the termination of contractual relationships. Based on a case study driven within a European franchise network, it is possible to conclude that the supply chain resources and competences of a franchisor play an important role in the duration of the franchisor-franchisee relationship when customized solutions are proposed thanks to information technologies.