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Franchisor-Franchisee Confrontation in a Quick Service Restaurant

Ahmad Siddiquei, Paul W. Beamish

Product #:W45822
Supplier:Ivey/Bond
Discipline:General Management, Organizational Behaviour/Leadership
Setting:Australia, 2021
Details:Case (PDF) • 7 pages • 2025-08-12

Subjects:

LeadershipLeadership developmentLeadership and managing peopleOrganizational cultureManagementOrganizational behavior

Industries:

Food and beverage sector

Geography:

AustraliaAustralia and Oceania
Your Price:$10.54

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Miland and his wife Deepika were new franchisees, having acquired a franchise under Quick Service Restaurant (QSR) Inc in 2022. Four months into their new business, Rob, the master franchisee for the region, visited the restaurant to assess its operations and discuss goals for the business. During the visit, Rob imposed stringent demands related to operational hours, billboard, new equipment, and ownership transfer. The professional discussion quickly escalated into a personal confrontation when Miland challenged Rob’s demands.

Questions exist about Rob’s leadership approach and the justification behind his demands, the appropriateness of Miland and Deepika’s responses, and contextual factors that shape the franchisor–franchisee relationship. Miland and Deepika need to explore potential strategies and alternatives to navigate the current challenges.

Learning Objectives

The case can be used in various courses, including leadership, organizational behaviour, business ethics, and human resource management, both at the undergraduate and postgraduate levels to explore dimensions of bad leadership, followership, and an enabling environment within the context of a franchise business model that nurtures toxic leadership tendencies. Students will be able to undertake the following:
  • Analyze the leadership style of the master franchisee, focusing on his authoritative and unilateral decision-making.
  • Unpack the role of the followers in the leadership process, highlighting their vulnerability, especially when the power differential is high between the leader and follower within the context of the franchising system.
  • Explore contextual factors in the franchising system that can aggravate conflict within the franchisor–franchisee relationship.
  • Understand that workplace confrontation may conclude with positive results.
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Case Study: Franchisor-Franchisee Confrontation in a Quick Service Restaurant (English version) | Ivey Publishing