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The basis of the franchising system is the franchisor-franchisee relationship, which is formed by agreements made by both parties. Due to the significant growth of the franchising system and the emergence of conflicts between franchisors and franchisees, Franchisee Associations (FAs) became the responsible actors for promoting a sustainable relationship in the franchise system (LAWRENCE; KAUFMANN, 2010).
the objective of this research is to comprehend the actions undertaken by Franchisee Associations (FAs). More specifically, we aimed to: (a) identify the role played by FAs regarding their relationship with franchisors; (b) understand conflict resolution procedures alongside with franchisors (by means of FAs); (c) identify FA abilities to play a relevant governance role in franchisee-franchisors relationships, in order to solve conflicts
Franchisee Associations (FAs) become active when a franchisor demonstrates an opportunistic behavior towards their franchisees, granting the association the provision of a protective mechanism of their rights.Misleading agreements, franchise misrepresentation, termination of contracts, unfair profits distribution and use of coercive force are examples of opportunistic behavior that can be pursued by franchisors (LAWRENCE; KAUFMANN 2010).
The object of study of this paper is the franchise chain Skill Idiomas (language school), which belongs to the Pearson Group. Information regarding the FA was collected and provided by the directors of the association.The sample of this study comprised the franchise chain Skill Idiomas (language school), located in the city of São Paulo and in its Metropolitan and ABC Region (encompassing the cities Santo André, São Bernardo do Campo and São Caetano). we used a semi-structured interview guide.
They admitted, however, the existence of conflicts, which have been identified and justified by the heterogeneity of the group.Considering cooperation, all interviewees (Directors, franchisees in the ABC region, São Paulo Capital franchisees, franchisees and franchisor of the Metropolitan region of São Paulo) affirmed there is only a partial cooperation between all network components.Identified the rules and penalties that are the basis of the association's policy as the way of governance.
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