AADYA -National Journal of Management and Technology

Mary Abraham Mathews ¹, Henry Babu ²

Affiliations
1 Padmashree Dr. D. Y. Patil University’s, Department of Business Management, IN
2 Mansukhani Institute of Management, Ulhasnagar, IN

Abstract

There is no doubt today that franchisors should be concerned about how strongly they are perceived as providing value to their franchisees. While a strengthening of franchisee opinions about the received value from franchisors can help to solidify a positive relationship between franchisee and franchisor, aweakening of franchisee opinion about the value received from the franchisor may provide a signal that the franchisor-franchisee relationship is deteriorating. If deterioration in the franchisor-franchisee relationship is not detected in its early stages, the compromise of the franchisor-franchisee relationship may continue to evolve to the point where the relationship becomes dysfunctional, resulting in increased tensions between franchisors and franchisees and ultimately in the termination of the relationship itself. Thus, there is a need to examine factors that cause the actual changes and their impact on performances of franchisees.

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