Status of Franchisor-Franchisee Relationship (SFFR) on Business Performance of Tata Ilio: Basis for Sustainability

Vol.4, No.1

Abstract

The purpose of this study is to determine the status of the franchisor-franchisee relationship
(SFFR) on the business performance of Tata Ilio: the basis for sustainability in terms of trust,
satisfaction, commitment, financial performance, relationship performance, and service.

From the results of this study. It reveals that the franchisor-franchisee relationship on Tata
Ilio's sustainability is evaluated as "always sustainable" in terms of trust, satisfaction, and
commitment. It also reveals that in the franchisor-franchisee relationship in the business
performance of Tata Ilio, the overall performance is evaluated as "good performance" in terms
of finances, relationships, and service. The conflicts encountered in terms of the franchisor-
franchisee relationship, the poor communication in business changes, and misunderstanding
in cost and royalty add up to the highest main conflicts of Tata Ilio in terms of the franchisor-
franchisee relationship there. Can an action plan be proposed to sustain the franchisor-
franchisee relationship of business performance in Tata Ilio?

This study recommended that the Tata Ilio franchise should continue to maintain the business
performance at its high franchise rate and be consistently transparent, committed, and fair for
the continuing sustaining the business performance and relationship of franchisor-franchisee.