Factors_influencing_franchisees_performance_in_Nigeria_Chapter2_Part14.docx - At present there is lack of empirical clarity on the impact of tying

Factors_influencing_franchisees_performance_in_Nigeria_Chapter2_Part14.docx

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At present, there is lack of empirical clarity on the impact of tying agreement on franchisees performance. For example, according to a survey in South Korea, while franchisees were found to be highly satisfied with the punctuality at which franchisors deliver supplies and raw materials to their outlets, the same survey revealed that franchisees are most dissatisfied with the prices of the items as well as the requirement to have their employees recruited by franchisors (Roh & Yoon, 2009). Thus, given the limited literature on the contract term of tying agreement and unclear understanding of its effects on franchisees satisfaction, this study considers the factor for further exploration. By and large, the foregoing discussions have been about the element of contract design as a potential influencer of the performance of franchisees’ business in Nigeria. As contained in the adapted conceptual framework, a synthesis of the meaning, importance and empirical findings on each identified term of franchise contract has been given. Based on various reasons including the need to confirm relevance of previous findings in other contexts (Nijmeijer et al , 2014), all the contract terms highlighted in the adapted model have been chosen for further exploration in this study. These terms are: initial level of payment, ongoing payment, exclusive territory and tying arrangement. The next section discusses the next element in the adapted conceptual framework.
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2.3.2.3 Behavior and Interaction Factors Apart from business format and contract design factors discussed in the last two preceding sections, behavior and interaction is the third and last element in the conceptual model adapted for this study. As summarized in tables 2.5 and 2.6 below, this particular element is broadly
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