Influence of the franchising code of conduct on the franchisor-franchisee relationship

Lim, Jolene and Frazer, Lorelle (2000) Influence of the franchising code of conduct on the franchisor-franchisee relationship. In: ANZMAC 2000: Visionary Marketing for the 21st Century: Facing the Challenge, 28 Nov - 1 Dec 2000, Gold Coast, Australia.

Abstract

The Australian government introduced the first mandatory Code of Conduct as part of the Trade Practices Act
(1974) to regulate its franchising sector in July 1998. In this research fifteen interviews were conducted to
obtain feedback from franchising participants regarding their views on the influence of the Franchising Code of
Conduct (the Code) on the franchisor-franchisee relationship.

It was found that although many of the interviewees thought the Code was ambiguous in many areas, as well as being costly and time-consuming to comply, they were generally supportive of the new legislation. In general, interviewees felt that through its numerous requirements, the Code was able to increase the level of trust and commitment between franchisors and franchisees at the beginning of the relationship. The Code was thought to be most beneficial when conflict occurred because it helps facilitate communication and provides a balance of power between franchisors and franchisees. However, it was revealed that the Code had the least amount of impact on the termination/renewal phase because most interviewees had not experienced the situation to be able to comment on it.


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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version in accordance with the copyright policy of the publisher.
Faculty / Department / School: Historic - Faculty of Business - Department of Management and Organisational Behaviour
Date Deposited: 30 Nov 2007 11:55
Last Modified: 24 Aug 2016 04:21
Fields of Research : 15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150311 Organisational Behaviour
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150314 Small Business Management
18 Law and Legal Studies > 1801 Law > 180105 Commercial and Contract Law
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
URI: http://eprints.usq.edu.au/id/eprint/10824

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