Recent franchise conflict research findings reveal a need for greater transparency by franchisors to their franchisees. A quarter of franchisees don’t trust their franchisors, while half of those surveyed don’t believe franchisors communicate accurate information.

The other causes of conflict in franchisees’ minds were lack of franchisor support, system compliance, franchise fees, marketing and profitability.

The research into franchise conflict, conducted by Griffith University’s Asia-Pacific Centre for Franchising Excellence, was funded through an Australian Research Council linkage grant with the Australian Competition and Consumer Commission.

Lead researcher and Asia-Pacific Centre for Franchising Excellence director Professor Lorelle Frazer said the survey was generally positive, but more work was needed in certain areas.

Findings show three quarters of franchisees trust their franchisor to be honest with them, however itÍs a little concerning there is still a quarter of franchisees who donÍt trust their franchisor. Trust is the foundation of any strong and prosperous relationship, whether in business or otherwise.

The franchise conflict research findings also reveal while half of franchisees do believe in the accuracy of information provided by their franchisor, only half feel communication is prompt and timely.

A recurring theme throughout franchise research conducted by the Centre is the importance of communication in a franchise relationship, Professor Frazer said. Communication was given as the cause of major franchise conflict between a franchisor and franchisee in nine percent of cases.

By addressing communication issues as they arise, and putting proper structures and measures in place franchisors may be able to avoid or at least decrease conflict in their franchise business.

The research was conducted through surveys with 350 franchisees from across Australia.