Ethical Foundations of Franchisor-Franchisee Relationships and Their Influence on Business Performance Outcomes Across Franchise Systems

Isi Artikel Utama

Arif Rachman Putra
Rommy Hardyansah
Agung Satryo Wibowo

Abstrak

This paper examines the ethical dynamics between franchisors and franchisees and their impact on business performance within franchise systems. Using a literature-based approach, it explores how trust, transparency, contractual fairness, and ethical governance influence outcomes such as operational compliance, innovation, franchisee satisfaction, and brand reputation. Ethical practices—ranging from balanced contract terms and collaborative standard-setting to fair dispute resolution and adaptive mentorship—emerge as central to sustainable performance and stakeholder retention. The paper further analyzes how ethical conduct shapes system resilience during crises and supports long-term scalability through enhanced trust and reduced litigation. It highlights that ethical franchising is not merely a legal obligation, but a strategic imperative that contributes to social legitimacy and market competitiveness. The findings underline the need for more integrated governance frameworks that promote ethical reciprocity and transparency in franchising. Recommendations include embedding ethics into franchisor training, enhancing cultural sensitivity, and encouraging participative governance models. Overall, the study reinforces that the moral foundation of franchising relationships is critical to securing performance outcomes, mitigating risk, and fostering public trust in an increasingly complex business environment.

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Cara Mengutip

Putra, A. R., Hardyansah, R., & Wibowo, A. S. (2022). Ethical Foundations of Franchisor-Franchisee Relationships and Their Influence on Business Performance Outcomes Across Franchise Systems. Journal of Social Science Studies, 2(2), 279-284. https://jos3journals.id/index.php/jos3/article/view/198

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