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<dc:creator>Calderón Monge, Esther</dc:creator>
<dc:creator>Pastor Sanz, Iván</dc:creator>
<dc:date>2017-12</dc:date>
<dc:description>The franchisor-franchisee relationship is governed by contracts and trust. This paper analyzes how&#xd;
formal (contracts) and relational (trust) governance mechanisms affected franchisor performance&#xd;
in a service sector franchise for the period 2008¬2015. Using the SOM method in the empirical&#xd;
analysis, the results revealed that trust-based governance was more prominent than contractbased&#xd;
governance in the multi-unit franchise network and the cross-franchising network, negatively&#xd;
affecting franchisor performance in the multi-unit franchise network and positively affecting&#xd;
franchisor performance in the cross-franchising network. In contrast, contracts were more prominent&#xd;
than trust in single-unit franchising, negatively affecting franchisor performance. The primary&#xd;
practical implication is that the franchisor should prevent franchisees in the MUF network from&#xd;
opening new outlets in the same city and competing for the existing outlet’s customers.</dc:description>
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<dc:identifier>http://hdl.handle.net/10259/5715</dc:identifier>
<dc:language>eng</dc:language>
<dc:publisher>University of Finance and Management in Warsaw</dc:publisher>
<dc:title>Effects of contract and trust on franchisor performance</dc:title>
<dc:type>info:eu-repo/semantics/article</dc:type>
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