Optimising franchise relationships in the restaurant industry: choice or chance?

This paper is based on a study into franchise relationships in the Australian restaurant industry. A model of franchisee buying behaviour is developed, depicting the sequence of events which occur in the purchase and operation of a franchised small business. The relationships in the model are tested with data obtained from nine restaurant franchise companies and 127 of their franchised owner-managers. The objectives of the study were to identify the characteristics of franchisors and franchisees which contribute to franchisee satisfaction with purchasing and operating a franchised outlet, and the consequences of this level of satisfaction so that its importance to the relationship can be evaluated.