The business format franchise model is a unique and
proven method for exploiting franchisor and franchisee
synergies and promoting SME entrepreneurship, but franchisees are damaged, and ‘‘franchising [may be]
diminished, by the inappropriate practices of those
who trade off the reputation of franchising without
the ability to deliver on its promise’’ (Terry, 2003=2004,
p. 58). Terry argues that ‘‘the quest for an appropriate
form of regulation which protects the interests of both
parties in a manner that does not curb the entrepreneurial
nature of franchising, or threaten its development,
is critical’’