The Lodging Franchise Relational Model: A Model of Trust, Commitment, and Resource Exchanges

Abstract

ABSTRACT Franchising is the most dominant mode of operation for U.S.-domiciled lodging companies. This mode of operation has grown significantly as a result of the benefits received by franchisors and franchisees. Using a foundation of trust and commitment theory, this research developed a model that illustrates and explains the components of the lodging franchise relationship. The model suggests that the lodging franchise relational model is a bi-directional, value driven, mutually beneficial, symbiotic relationship of resource exchange and success is contingent on trust and commitment by both parties.