Training and power in franchise systems: the example of the UK automotive industry

Discusses the issue of power in franchise systems and the consequences it has on the relationships between manufacturers/franchisers and dealers/franchisees. Attention is paid to the training issue, as it is a significant variable in the “franchise package” which is provided by the franchiser to the franchisees, and through the literature proves to be a determining source of power possessed and employed by the manufacturer/franchiser over the dealer/franchisee. The literature review shows that there has been relatively little academic research on this issue. Training has been researched as part of the “assistance” or “general support” provided by the manufacturer, but not as a factor in its own right. An analysis of the current trends characterising the training provisions within the UK car industry and their implications on power relationships between manufacturers and dealers is presented. Training appears to be a source of power possessed and employed by the car manufacturers and, thus, it confirms that the car manufacturers highly control and influence the training area.