Franchise systems as strategic networks studying network leadership in the service sector

Links the literature on interorganizational networks and relations research on franchising in an attempt to address when to opt for franchising and how to manage franchises. Asserts that franchise systems are strategic network organizations and pinpoints what that means and how such a system can be managed. Looks at the social theory of structuration and applies it to franchise management. Focuses on six franchise networks in Germany – McDonald’s (fast food), OBI (DIY superstore), Anfina (estate agents), Schulerhilfe (provides tutoring), Computerland (selling and servicing computers), and Hyper Services (a service provider). Finds differences among their network organization, particularly in the relationship with the centre firm. Indicates that network firms require very careful interpersonal relationship management which should be monitored, and that leadership by the centre firm cannot be assumed to control network processes.