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The conflicts between franchisers and franchisees in the fast-food industry can be explained by a number of factors. The biggest source of tension is the difference in goals between the two parties. Franchiser’s are primarily interested in increasing profits, while franchisees are focused on maximizing customer service and sales. As a result, they often disagree when it comes to decisions about pricing, remodeling, store hours, etc. Additionally, there is an inherent power imbalance in franchising agreements that can lead to further conflict; Franchisees may feel that they lack control over their business and resent certain decisions made by their parent company.

Furthermore, financial disagreements such as those concerning royalties or advertising fees may also contribute to a strained relationship between franchisor and franchisee. To promote cooperation between both parties it is important for them to clearly communicate expectations from one another and work together towards mutually beneficial solutions with respect for each other’s needs.

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