The Domino Effect: How Ansett Airlines' Failure Impacted on Traveland Franchisees

Abstract

This research presents a case study of the Traveland franchise network. Following the liquidation of Ansett Airlines, the Traveland franchiser, a subsidiary of Ansett, became insolvent. The case study explores the resulting impact on a sample of the franchisees of the Traveland network. Literature on small business and franchising failure is examined, with a particular emphasis on franchiser insolvency. This preliminary research illustrates the impact of franchiser insolvency on the franchising sector and highlights the difficulty of obtaining information about businesses that have ceased to operate. It further illustrates the challenges the franchise business model poses for insolvency law.

Keywords: franchisor, franchisee, insolvency, failure, bankrupt, impact

JEL Classification: G33, K00