Factors that drive the perceived success of franchises in South Africa

Abstract

Franchising as a business format has become increasingly popular on a global scale in both developed and emerging countries, as it develops entrepreneurship, provides growth, fosters skills transfer, and leads to job creation. While prior studies have focused on financial growth, network expansion, survival, and franchisor-franchisee relationships, there is limited knowledge about the drivers behind franchise success, particularly in emerging markets. Consequently, the purpose of the research was to identify the key factors that drive franchise success in South Africa. A mixed methods approach was used, with a qualitative study of eight franchisors, and a quantitative study of 156 franchisees. Confirmatory factor analysis revealed seven factors that drive franchise success: brand strength and support, mutual trust and sharing, customer-centricity, franchisee dedication, relationship experience, brand consistency and brand resonance. The three factors, customer-centricity, brand consistency and brand resonance, are new findings. A conceptual framework has been developed for franchise success, comprising three categories: brand support, intellectual connection and emotional commitment.