Carpenter Tan Handicrafts Co. Ltd.: Franchisee Satifaction
(5 pages of text)
A businesswoman owned two franchised stores of Carpenter Tan Handicrafts Co., Ltd. (Carpenter Tan) in Panjin City, China. Carpenter Tan was a leader in the wooden crafts industry. When the first franchised store was set up in 2012, she was excited by and satisfied with Carpenter Tan’s franchise model. However, after her second franchised store was set up in 2014, she felt that this franchise model was restricting her development and autonomy. In 2016, Carpenter Tan suggested that the businesswoman open a third franchised store in Panjin, where the wooden crafts market was close to saturation. The businesswoman, who had become dissatisfied with Carpenter Tan’s franchise model, faced a tough choice about whether she should set up the third franchised store.
This case offers students an opportunity to master the following theoretical and practical points:
- the advantages and disadvantages of franchising for a franchisee compared with starting a business or being an employee;
- the change characteristics of franchisee satisfaction during the whole process of franchising, and the causes of this change; and
- the ways to improve franchisee satisfaction.
China, Small, 2016
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