4.1 Results and Discussion
I have mentioned in chapter two that I’d like to distinguish the different mindset between franchisor and franchisee, which using the five categories that Morgan and Hunt designed base on the trust-commitment theory.
1. Ability
For sure the franchisor has ability to create value for franchisee and its own, all of my participants agree with it. Except participant D, all of my participants said although they still earn the money, the profit shrank drastically these years. Participant A indicated the first three years they earned more money than the years after, due to the stagflation and raised salary of employees. Participant C said due to some incidents such as tainted milk powder event and tainted oil event, these events gives 85°C café a terrible blow, customer do not trust any company, even a famous company. People cook themselves, because they trust only themselves, so the demand of eating out goes down, and the profit of restaurant service industry, like 85°C café, goes down too. Participant D indicates the company only cares their own value, but not franchisees.
Table 4 Interview extract about franchisor’s ability.
Ability
A “We used to have pretty good profit, but the labor costs and the ingredient costs make our profit shrink drastically. ”
B “The hour pay went from NT$80 to NT$120 in decade, but the selling price only adjust one time, which is NT5 only. ”
C “The food safety crisis, especially the tainted oil by Ting Hsin International Group (頂新油品風暴) inflicted food industry in Taiwan heavily. ”
D “I believe they have the ability to create value, but they only care for its own value, not ours.”
2. Integrity
Integrity means honest, be able to trust. One of my participants agree the idea when the company voluntarily recycled the moon festival gifts back to the company, due to the slow sales of food safety crisis.
Participant A- “Usually we need to buy the remained moon festival gifts after Chinese moon festival, but this time the company voluntarily recycled all the gifts, because general franchisees did not sell well due to the food safety crisis.”
Participant B- does not trust the company because they always change the rule of granting. Franchisee believes the company will not harm the company’s own benefits, so they keep changing the rule.
Table 5 Interview extract about franchisor’s integrity Integrity
A
“ Usually we need to buy the remained moon festival gifts after Chinese moon festival, but this time the company voluntarily recycled all the gifts, because general franchisees did not sell well due to the food safety crisis.”
B “ Company keep changing the rule of granting, I don't think a great company should be like this.”
3. Benevolence
This is how much the company cares the franchisees; do they value, or respect the franchisees? My participants said the company makes most of the decision, especially in the early period. Later on, the company does ask suggestions from the franchisees, but my participants doubt the impartiality, because the company does not take the suggestions into account. For example:
Participant D- “ The Company gives out three choices of packaging the moon festival gifts for franchisees to vote, but the outcome is three of the packaging are all
published to the customer, so why asked our opinion? ”
Moreover, participant B is not happy with the marketing plan by using media.
Participant B- “ We have paid the media fee every months, but we see nothing that is qualified was shown on the television.”
All of my participants are not happy to the marketing part especially the TGIF coffee day; because the event is company’s own idea, and it lasts too long.
Table 6 Interview extract about franchisor’s marketing activity performance Benevolence – Marketing activity
A “This marketing activity is a good intention, but it lasts too long. The effect seems worse and worse every week. ”
B “Marketing activity is a must, but keeping the second cup to the next time should not be allowed. ”
C “The policy of keeping cups should in accord with all the stores, or the marketing activity will sink down to a vicious circle. ”
D “Marketing activity is good, but I don't let customer to keep cups, this will effect our performance on the weekdays. ”
4. Communication
Communication is a very important part when cooperating a business. 85°C café has assigned consultant to help or to assist every store, each consultant may manage 5 to 10 stores depends on the district and the ability. The most important work for the consultant is to convey the thought and instruction from the company, it is like the bridge between franchisor and franchisees.
None of my participants respond awkward with their consultants, they all get along with the consultants, but problems between franchisor and franchisees still exist, and mainly because of the different opinions. The consultants do pass the message or suggestion to the company, but the problems sustained, my participants point the target to the company itself.
Table 7 Interview extract about franchisor’s communication performance Communication
A “We have told the consultant to pass the dissatisfied to the company, and they only listen to the problems, but not solving them. ”
B
“They do pass the suggestions to the company, but saying is one thing, doing is another. The company may listen to our opinion, but not accept, that is the problem. ”
C “ The problems is delivered by the consultant, but to accept or not is the decision by the company.”
D “ Try hard to cooperate the policy by the company, there won’t be problems then.”
5. Trust
Trust in this category means more than believes, this part contains the credit, whether your partner is a reliable company or not in the future. All of my participants do want to cooperate with 85°C café again if everything starts over. Although problems still occur, but they think 85°C café is a company that is stable and make money steadily nowadays.
Table 8 Interview extract by franchisees’ in the category of trust Trust
A “I will still cooperate with 85°C café because it is a stable company and make money steadily.”
B
“I will still choose 85°C café but not the bakery part, because there are too many variable factors when cooperate the bakery part with the company, and the speed of payback is too slow.”
C “85°C café has not only one brand now, it shows its ambition in food and service industry area, so I think it is still a good choice to be the partner of them. ”
D “I worked well with 85°C café now, so I will still cooperate with them in the future.”