Trust and Success: Franchisee Perspective on Relational Trust With the Franchisor and Impact on Unit Growth

Abstract The problem addressed in this study was that it is unknown how franchisees perceive trust and its influence on unit growth and contractual control within the franchisor and franchisee relationship. The purpose of this case study was to explore the franchisee’s perspective of trust within the franchisor and franchisee relationship and its impact on growth and contractual control. A qualitative case study approach was used, with data collected from 13 participants from one franchise organization in the United States through semistructured interviews and questionnaire. Data were transcribed, coded, and analyzed thematically, with triangulation and member-checking ensuring credibility. Two key findings emerged. First, franchisees value communication, support, and honesty that focuses on moving their investment forward but also moving the franchisor forward. The franchisees see trust within the relationship as various behaviors that create positive impact and collaboration. Second, franchisees find value in the aspect of the contract that protects their investment. However, they would benefit from communication related to the enforcement of the document. Furthermore, the franchisees value consistency in which decisions about the contract and adjustments are aligned to profitability goals of both the franchisor and the franchisee to reach success together. Ultimately, trust was rooted in various behaviors related to the contract and control. The researcher concluded that there are various behaviors that are rooted in trust and how it impacts the franchisor and franchisee relationship. Recommendations include trust and transparency in communication, understanding factors to reinvestment, and consistency.