A conceptualization and empirical examination of the effects of marketing alignment on franchising relationships

Franchising is a widely utilized business format that continues to grow in popularity both domestically and abroad. Through the recruitment of franchisees as agents, franchisors are able to access additional resources and rapidly expand their networks. The marketing relationship between franchising partners presents unique opportunities and challenges due to this captive and codependent channel structure. In order to fill a gap in the literature and better understand franchisee-franchisor relationships, the author conceptualizes marketing alignment as being comprised of both agreement and cooperation across the dimensions of strategies, operations, and values. A conceptual model is developed that addresses the following research questions: 1) What is franchisee-franchisor marketing alignment?, 2) What effects does marketing alignment have on implementation and satisfaction?, and 3) What factors moderate (and how) the effects of marketing alignment on its outcomes? The model is tested in a sample of 110 current food and beverage franchisees representing 31 companies. The results show that (a) operational marketing alignment positively affects implementation, (b) strategic, operational, and values marketing alignment all positively affect satisfaction, and (c) franchising capability, franchisor marketing mix control, financial transparency, and idiosyncratic investment each play a unique role in moderating the main effects of marketing alignment on its outcomes under specific conditions. The results imply that marketing managers can intentionally alter the degree of implementation and satisfaction that is achieved by franchisees through either greater alignment or by altering their own level of transparency, investment, and control