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  • Franchisor Insolvency in Australia: Profiles, Factors, and Impacts

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    Author(s)
    Buchan, Jenny
    Frazer, Lorelle
    Qu, Charles Zhen
    Nicholls, Rob
    Griffith University Author(s)
    Frazer, Lorelle
    Year published
    2015
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    Abstract
    Franchisor failure is enduring and important in terms of cost, nationally and internationally. This article presents research into Australian franchisor firms that went into a form of bankruptcy protection known in Australia as “voluntary administration.” The research was driven by the commonality and divergence of the interests of franchisors and franchisees. The article provides an insight into franchisor failure and its effect on franchisees. It presents the substantial literature survey that was used to frame questions for franchisor administrators to understand issues associated with franchisors in administration. The ...
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    Franchisor failure is enduring and important in terms of cost, nationally and internationally. This article presents research into Australian franchisor firms that went into a form of bankruptcy protection known in Australia as “voluntary administration.” The research was driven by the commonality and divergence of the interests of franchisors and franchisees. The article provides an insight into franchisor failure and its effect on franchisees. It presents the substantial literature survey that was used to frame questions for franchisor administrators to understand issues associated with franchisors in administration. The limited data demonstrate diversity in the treatment of franchisees during the franchisor's administration. In Australia, franchisees remain a captive, financially committed counterparty during insolvency and potentially deliver a great financial benefit to the franchisor's creditors. The article concludes that administration of franchisors does not take into account the distinct relationship between franchisors and their franchisees and provides policy recommendations to address this matter.
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    Journal Title
    Journal of Marketing Channels
    Volume
    22
    Issue
    4
    DOI
    https://doi.org/10.1080/1046669X.2015.1113487
    Copyright Statement
    © 2015 Jenny Buchan, Lorelle Frazer, Charles Zhen Qu, and Rob Nicholls. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. The moral rights of the named author(s) have been asserted.
    Subject
    Marketing not elsewhere classified
    Marketing
    Publication URI
    http://hdl.handle.net/10072/101691
    Collection
    • Journal articles

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