Abstract
Franchise Advisory Councils (FACs) form an important managerial instrument for franchisors to create and/or maintain franchisees’ trust in the fair and effective functioning of their franchising networks. We build on procedural fairness theory and insights from articles in trade journals to develop a theoretical framework with seven core principles that affect franchisees’ perceptions regarding the fair management of their FACs. These core principles are the consistency principle, the bias suppression principle, the accuracy principle, the correctability principle, the representativeness principle, the ethicality principle, and the interactional principle. For each core principle, we distinguish specific managerial principles that help in fulfilling it. This discussion results in an extensive framework with principles for the design and management of fair FACs (“the fair FAC framework”). We end the chapter by discussing theoretical implications and avenues for future research.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Adams JS (1963) Toward an understanding of inequity. J Abnorm Soc Psychol 67:422–436
Anderson B (2002) Franchisee advisory councils serve as effective conduits. Franchising World 34(6):9–10
Bies RJ, Moag JF (1986) Interactional justice: communication criteria of fairness. In: Lewicki R, Sheppard BH, Bazerman MH (eds) Research on negotiations in organizations, vol 1, pp 43–55
Bloom BV (2003) Cooperation: the key to building lasting franchise relationships. Franchis World 35(6):27–28
Bobocel DR (2013) Coping with unfair events constructively or destructively: the effects of overall justice and self-other orientation. J Appl Psychol 98(2):720–731
Brockner J, Wiesenfeld BM (1996) An integrative framework for explaining reactions to decisions: interactive effects of outcomes and procedures. Psychol Bull 120:189–208
Cochet O, Ehrmann T (2007) Preliminary evidence on the appointment of institutional solutions to franchisor moral hazard – the case of franchise councils. Manag Decis Econ 28(1):41–55
Cohen-Charash Y, Spector PE (2001) The role of justice in organizations: a meta-analysis. Organ Behav Hum Decis Process 86(2):278–321
Colquitt JA (2001) On the dimensionality of organizational justice: a construct validation of a measure. J Appl Psychol 86(3):386–400
Colquitt JA, Conlon DE, Wesson MJ (2001) Justice at the millennium: a meta-analytic review of 25 years of organizational justice research. J Appl Psychol 86(3):425–445
Colquitt JA, Zipay KP, Lynch JW, Outlaw R (2018) Bringing “the beholder” center stage: on the propensity to perceive overall fairness. Organ Behav Hum Decis Process 148:159–177
Croonen EPM (2010) Trust and fairness during strategic change processes in franchise systems. J Bus Ethics 95(2):191–209
Croonen EPM, Broekhuizen TLJ (2019) How do franchisees assess franchisor trustworthiness? J Small Bus Manag 57(3):845–871
Cumberland DM (2012a) Franchise advisory boards and councils: mapping your relationship. Franchising World 44(9):31–33
Cumberland DM (2012b) Part 3: franchise advisory boards and councils: mapping your future. Franchising World 44(12):72–73
Cumberland DM (2015) Advisory councils in franchising: advancing a theory-based typology. J Mark Channels 22:175–191
Dandridge TC, Falbe CM (1994) The influence of franchisees beyond their local domains. Int Small Bus J 12(2):39–49
Davies MAP, Lassar W, Manolis C, Prince M, Winsor RD (2011) A model of trust and compliance in franchise relationships. J Bus Ventur 26:321–340
Dwyer JM (2008) No franchise is an island: franchisees and franchisors rely on each other. Franchising World 40(7):80–81
Flaherty T (2016) Strategies for working with franchise advisory councils. Franchising World 48(8):35–37
Greenberg J (1990) Organizational justice: yesterday, today, and tomorrow. J Manag 16(2):399–432
Greenberg J (1993) The social side of fairness: interpersonal and informational classes of organizational justice. In: Cropanzano R (ed) Justice in the workplace. Lawrence Erlbaum Associates, London
Grueneberg S (2004) Creating and maintain effective relations with franchisee advisory councils. Franchis World 36(6):22–23
Hackel E (2011) Getting better results from your franchisee advisory councils. Franchis World 43:22–24
Hackel E (2012) Creating empowerment: enabling franchisees to be heard. Franchising World 44(9):26–27
Kaufmann PJ, Eroglu S (1998) Standardization and adaptation in business format franchising. J Bus Ventur 14(1):69–85
Lawrence B, Kaufmann PJ (2010) Franchisee associations: strategic focus or response to franchisor opportunism. J Market Channel 17(2):137–155
Lawrence B, Kaufmann PJ (2011) Identity in franchise systems: the role of franchisee associations. J Retail 87(3):285–305
Leventhal GS (1980) What should be done with equity theory? New approaches to the study of fairness in social relationships. In: Gergen KJ, Gereenberg MS, Willis RH (eds) Social exchange: advances in theory and research. Plenum, New York, pp 27–55
Lind EA, Tyler TR (1988) The social psychology of procedural justice. Springer, New York, NY
Modell CS (2010) Trust: key to successful franchise relationships. Franchis World 42(9):9–10
Perry R (1993) The facts about FAC’s: they work! Franchis World 25(4):12–14
Pfeifer C (2007) The perceived fairness of layoffs in Germany: participation, compensation, or avoidance? J Bus Ethics 74:25–36
Storholm G, Scheuing EE (1994) Ethical implications of business format franchising. J Bus Ethics 13(3):181–188
van Dijke M, de Cremer D, Langendijk G, Anderson C (2018) Ranking low, feeling high: how hierarchical position and experienced power promote prosocial behaviour in response to procedural justice. J Appl Psychol 103(2):164–181
Wulff E (2005) Advisory councils: effective two-way communications for franchise systems (revised version of 2005). International Franchise Association, Washington, DC. Retrieved from www.franchise.org
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Appendix: Extended Fair FAC Management Framework
Appendix: Extended Fair FAC Management Framework
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Croonen, E.P.M., Bleeker, I. (2019). Management of Franchising Networks: Seven Principles for Fair Franchise Advisory Councils. In: Windsperger, J., Cliquet, G., Hendrikse, G., Srećković, M. (eds) Design and Management of Interfirm Networks. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-29245-4_8
Download citation
DOI: https://doi.org/10.1007/978-3-030-29245-4_8
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-29244-7
Online ISBN: 978-3-030-29245-4
eBook Packages: Economics and FinanceEconomics and Finance (R0)