There are numerous examples to show how exponential growth has been achieved by companies through franchising. Franchise chains are contractual networks that help in bringing independent businesses together in a vertically integrated system. Conflicts are bound to arise in such a system and in most cases, the franchisor is at the locus of control. Speedy and effective resolution of such conflicts becomes an imperative for the smooth operation of the system. This seems to be the area of impediment in the case of Indian franchise systems. The franchisor, being the larger organized player, should take the lead in conflict resolution. For this, the franchisor should put in place a justifiable process or system, whereby the franchisee also feels that his interests are well attended to. Together, the franchisor and the franchisee, they should understand the possible avenues for creating value for consumers and mutually agree on the roles that they should assume to provide such high value to their consumers. This article probes into the possible areas for creating values for customers and attempts to build a framework for establishing clarity on the roles to be assumed by the franchisor and the franchisee. The methodology is basically to look at the consumer in terms of the three crucial roles of buyer, payer, and user; and the value sought by the consumer while performing these different roles. The primary objective is to bring about clarity on how to create value for customers and the roles to be carved for the franchisor and franchisee. The focus on providing superior value to customers will definitely lead to development of superior franchise networks.

Franchising, being a relatively new concept in India, is yet to catch up with the global trend. With the advent of franchising in India, in the 1980s, companies like NIIT, Aptech, Coca-Cola, MRF, Elgi, TVS and HCL have tried the strategy in order to expand their business. Currently, in our country we see the franchising route being adopted in a wide range of industries such as, financial services, (e.g., Motilal Oswal, Sharekhan), fast food companies (e.g., Subway, United Pizza Restaurants), Car rentals (e.g., Hertz). However, discouraged by the unsuccessful experience of earlier players, many have discontinued. Looking back, there is not much that can be highlighted as achievements gained through franchising.