The debate is still raging among leadership and organizational behaviour researchers: which leadership style leads to better job satisfaction and work performance among team members? From autocratic to participative management, various models coexist in organizations and have evolved over time to reflect societal changes and expectations. Similarly governance issues in business-format franchising should also be scrutinized. Traditionally, business-format franchising has been based on a directive leadership model where franchisors develop the rules while franchisees execute the strategy. Deviating from the traditional model of concept uniformity, certain franchisors have implemented new forms of leadership throughout their franchise network and have fostered innovation, creative and entrepreneurial spirit in their franchisees. These new models take different forms and shapes and are called ‘freedom franchise’, ‘quasi-franchise’ or ‘entrepreneurial franchise’. The purpose of the chapter is to investigate the various forms of autonomy in business-format franchising and to research the viability and the justification of autonomy in business-format franchising. A parallel could be made with the research in the field of leadership. Autocratic versus democratic leadership styles lead to different results in terms of productivity, and employee satisfaction in particular. And, more recently, transformational leadership has been linked to innovativeness and creativity in corporations. This chapter is a conceptual chapter that lays the foundations for future research opportunities based on existing leadership models that may predict future directions in governance models for business-format franchising.
Odile Streed and Gérard Cliquet
Rozenn Perrigot, Guy Basset and Gérard Cliquet
The continued creation of websites in the franchise sector is inevitable, no matter whether they are informational or transactional websites. However, with the presence of these websites, there may be a risk that activities in the franchisees’ stores will decrease. Franchisors need to be attentive to the survival of their chains, to the consistency and uniformity of their chains and to potential conflicts with their franchisees or among their franchisees. This chapter deals with the development of websites within franchise chains in Europe. After briefly defining the legal regulations set by the European Union, the chapter considers the use of the Internet as a new marketing channel by studying the reasons why franchise chains need to be present on the Internet and under what conditions. Then the chapter discusses potential issues related to transactional websites opened by franchisors, e.g., encroachment problems and transactional websites opened by franchisees. It examines some solutions adopted by various French franchise chains.