CONFLICTS IN FRANCHISED FAST FOOD RESTAURANT: A CONTENT ANALYSIS OF FRANCHISEES’ LAWSUITS

Abstract

This paper presents findings from a content analysis performed using New York court records of lawsuits commenced by fast food restaurant franchisees against their respective franchisors. A methodological triangulation of CAQDAS and a manual coding generated a set of themes of conflicts between these fast food restaurant franchisors and franchisees. A coding matrix was developed to categorize types of conflict that led to the lawsuits filed against the franchisors. The significance of this study is that it provides potential franchisors and franchisees with types of recurrent conflict in franchise disputes, thus enabling both parties to address potential issues that foreseeably lead to such conflicts in the early stage of contract negotiation. The practical implications of this study include the recommendation for a mandatory inclusion of arbitration practices in franchise agreements in order to protect the interests of franchisees.