Conceptualising franchise success and failure in the South African quick service restaurant sector

Abstract

The ability of a franchisor to sustain a productive working relationship with its franchisees over time has been shown to ensure the continued success of the franchise system. This involves developing a strong and mutually beneficial relationship between the parties. This study sought to understand how this relationship could be damaged or irreparably affected due to a breakdown between the franchisor and the franchisee. Improving this relationship would allow for a more sustained commercial arrangement between the parties, reducing the cost associated with early contract termination and de-franchising. A multiple case study approach was used as the methodological framing for this study. The sample group consisted of de-franchised franchisees who had prematurely cancelled a quick-service restaurant franchise contract. A snowball sampling technique was used, and information was gathered using semi-structured interviews and analysed using ATLAS.ti. Seven themes were identified and used to construct a conceptual model that informs the nature of a lasting and mutually beneficial franchising relationship. This study and the resulting model are valuable for franchisors in helping to select the most appropriate franchisees and ensure that the investment made into quick-service restaurant franchise brands is supported throughout the franchise relationship.