The Function of Franchisee Trust and Franchisor Trustworthiness within the Franchising Relationship

Abstract

This dissertation serves three major purposes: (1) to create new knowledge in the domain of franchising research, (2) to assist future academic inquiry by advancing agency theoretical understanding, and (3) to serve members of the franchising community by developing a framework for building franchisee trust. It is proposed that trust within the franchising relationship is important for overall franchisee performance, as well as necessary for uniting the franchisee and the franchisor in their mutually beneficial endeavours. Franchisee trust and franchisor trustworthiness are considered to have a central function within the franchising relationship and through empirical examination, both qualitative and quantitative data provided confirmation of this proposition. 30 interviews were conducted with franchising experts, franchisees, and franchisors, until data saturation was achieved. The interviews were audio recorded, with the permission of the interviewee, then transcribed. Analysis of the transcripts, assisted by Nvivo software, provided insight and preliminary answers to the five research questions: (RQ1) how is franchisee trust understood within the franchising sector? (RQ2) Can authentic trust exist within the franchising relationship? (RQ3) What are the barriers to building franchisee trust? (RQ4) How is franchisee trust built in the franchisor? (RQ5) What role does trust play in franchisee performance?