The purpose of this paper is to examine franchise relationships by using an interaction approach which involves several exchanges or actor bonds between a franchisor and franchisee. The study is based on a web survey directed towards franchisees in Sweden. A total of 191 survey responses were obtained from a wide range of industries, representing a 16.2% response rate. A Pearson Correlation test was performed for the hypotheses. Results demonstrate a significant correlation on the impact which adaptations have on commitment in franchise relationships. Furthermore, information exchange is positively related to enhanced franchise outlet performance. The paper contributes to filling the gap within franchise relationship literature by applying an interaction approach in contrast to prior economic theories in this field of study.
Key Words: Franchising, relationships, interaction theory, contingency theory
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