An emerging paradigm shift in the marketing discipline has prompted renewed research interest in the nature and scope of exchange. A common theme in the research to date is a departure from the traditional transactional orientation to a relational perspective of exchange. The relational emphasis is particularly germane to contractual Vertical Marketing Systems (VMS) where the emphasis is on long-term, mutually beneficial interaction between various channel members. The franchisor-franchisee relationship, a type of contractual VMS, is governed by norms that impact system efficiency and effectiveness. Despite the unprecedented growth of international franchising systems in the marketplace, a paucity of empirical attention has focused on cross-national franchisor-franchisee relationships. With many U.S.-based business format franchisors penetrating foreign markets, the primary purpose of the dissertation is to provide insights into tools which franchisors, and franchisees can use during the evolution of the exchange relationship. To identify differences across geographic boundaries, the dissertation simultaneously studies domestic and cross-border franchisor-franchisee relationships.