3     Ethical Branding in Franchising

Implications for Brand Values and Corporate Culture

Antonella Capriello and Rohail Hassan

Introduction

Branding is an essential element of any franchise agreement, as a brand is a fundamental asset that enables franchise firms to differentiate themselves from competitors (Caves & Murphy, 1976). As Zachary, McKenny, Short, Davis, and Wu (2011) explain, franchise branding is also instrumental in maintaining the internal cohesion of the franchising network through the dissemination of common values. Nyadzayo, Matanda, and Ewing (2011) assert that marketing and branding activities rely on the franchisees’ abilities and help franchise to understand, interpret, and share the brand values.

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