report on franchising..quasi-dependence and interdependence..

1. Stages of Relationship Building Process

2. In case, the compliance to contract term is poor and either the franchisee or the franchisor behaves opportunistically for short term gains, it affects the process of trust building and ultimately stops the relationship process to “We” stage. Moreover, if any of the party starts attributing the success of the franchise system to the self instead of both, there is increasing dissatisfaction about the mutual performance. Quasi Dependence Stage

3. Due to this stage, the relationship deteriorates to a quasi-state called “Quasi- Dependence” stage. If taken care of, both the franchisee and the franchisor can save the relationship from getting severed. It can be done opening a channel of communication between them. Both the parties can negotiate and come to a mutually acceptable solution to the disputes and the relationship can again be taken to “You” stage.

4. This is a stage of relationship when both the franchisee and the franchisor have a “We” feeling and hence this stage is also called as “We” stage. Interdependence Stage

5. In this stage, the relationship reaches to be pinnacle. The paradigm shifts from merely conformance to the terms of agreement, promise fulfillment of resources on both the sides. The mindset of both the parties changes from “What minimum should be done” to “what maximum to be done”. The manifestation of the “We” is done in many ways and one of them could be the willingness of the franchisees to open up multiple stores with the same franchisor. Franchisors reciprocate by motivating the franchisees to go for multiple locations franchise in order to further strengthen the relationship.