Control, Autonomy and Collaboration in the Fast Food Industry

Abstract

This article examines the similarities and differences between domestic (US) and international franchises in the amount of control exerted by their US franchisors and the degree of autonomy accorded to franchisees. Based on in-depth interviews with franchisor representatives and franchisees from McDonald's, Subway, Papa John's, and Domino's, exploratory research is conducted to compare and contrast the franchisor-franchisee relationship in the fast food industry between the USA and Iceland, Ireland, the UK, Belgium, and the Netherlands.The interviews suggest that international franchisees tend to have more autonomy than their US counterparts, especially in decisions involving local market adaptation and in situations in which they experience strong performance or are master franchisees. On the other hand, experienced international franchisees are less likely to demand autonomy, while experienced US franchisees seek more autonomy. Interestingly, international franchisors and franchisees under hardship tend to seek collaboration rather than compete for control or autonomy.