Abstract
The contemporary business environment has witnessed a significant transformation, with franchising emerging as a prominent and effective business model. In the Philippines, franchising has been a powerful driver of market penetration, business growth, job creation, and economic development over the past 30 years (Castleberry & Tanner, 2015). Notably, the food cart sector has become a leading force within the franchising industry, experiencing remarkable growth and popularity as an avenue for achieving financial stability. This growth has positioned the Philippines as the "franchise hub of Asia," with over 3,000 franchises established nationwide (Association of Filipino Franchisers, Inc., 2019). Franchising involves a franchisor granting a franchisee the rights to use their business model, trademark, and know-how. However, this relationship is complex and inherently fraught with potential conflicts. Issues often arise from inadequate franchisor support, which can strain the franchisor-franchisee relationship and erode trust. Without trust, the partnership deteriorates, affecting overall business performance and potentially leading to closures. Many franchisees have reported dissatisfaction with their franchisors, particularly regarding support and contract renewals (Kaufmann & Stanworth, 2015). This study delves into the critical issues affecting the franchisor- franchisee relationship in the Philippine food cart sector. It examines the impact of insufficient support, strained relationships, and trust deficits on business outcomes. By addressing these challenges, the study aims to propose strategies to enhance the stability, growth, and success of franchised businesses, ultimately contributing to the sustained development of the franchising industry in the Philippines.
