Omnichannel strategies and franchisee-franchisor relationship quality

This paper investigates the impact of omnichannel strategies in franchised networks on the franchisee-franchisor relationship quality. It proposes hypotheses regarding the impact on relationship satisfaction of three sets of antecedents, related to franchisee perceived omnichannel value, omnichannel integration quality, and how the relational aspects of franchisee empowerment, franchisor support and intra-brand competition are modified in an omnichannel context. Quantitative data from 400 French franchisees are used to test the hypotheses with PLS-SEM. The results indicate that omnichannel strategies seem to have ambivalent effects on relationship satisfaction, where franchisees search for both support and autonomy, and appreciate omnichannel consistency while dreading the external transparency and internal competition it brings. We find no significant differences in the paths to satisfaction between retail and service franchisees. However, we report significant differences between franchisees with vs. without territorial exclusivity clauses in their contract. Under territorial exclusivity, omnichannel perceived value enhances franchisee satisfaction with the franchisor. Conversely, in the absence of territorial exclusivity, omnichannel strategies seem to deteriorate the franchise relationship, as franchisees not only find intra-brand competition more damaging, but also perceive the empowerment and the value they receive from omnichannel strategies negatively to the extent that it hinders their satisfaction with the franchisor