Strategic and relational factors affecting franchise performance: Systematic Literature Review (SLR)
DOI:
https://doi.org/10.59971/meta-journal.v3i3.406Keywords:
Franchising, Franchisor-Franchisee, partnership relationship, franchise Performance, Control System, Network sustainability, relationship management, franchisor support, franchisee satisfaction, franchise systemAbstract
This study aims to analyze the various factors that affect the success of the relationship between franchisor and franchisee, as well as their impact on the performance and viability of the franchise network. The method used is the systematic literature review (SLR), where this study combines the results of various international studies that discuss things such as relationship quality, control mechanisms, information inequality, operational support, entrepreneurial attitudes, and organizational dynamics in the context of franchising. The findings show that the success of a franchise system is highly dependent on the level of trust, communication effectiveness, conformity in contractual expectations, and the ability of the network in balancing operational standards with local flexibility. Imbalance of control and lack of information transparency are the causes of conflicts that adversely affect franchisee satisfaction and loyalty. On the other hand, responsive franchisor support and collaborative relationships can improve network performance, loyalty and viability. This study emphasizes the importance of building flexible and mutually beneficial relationships in franchise management, and suggests further research on the digitization of relationships, franchisee organizational behavior, and strategies to strengthen the viability of the franchise system in the midst of increasingly fierce competition.
Downloads
References
Anagnostopoulos, I. (Yiannis), Sails, T., & Alexandrou, G. (2025). FinTechs, BigTechs and diminishing bank franchise values: Stakeholder perspectives on a disruptive emerging financial ecosystem. Technological Forecasting and Social Change, 212. https://doi.org/10.1016/j.techfore.2024.123924
Bretas, V. P. G., & Alon, I. (2021). Franchising research on emerging markets: Bibliometric and content analyses. Journal of Business Research, 133, 51–65. https://doi.org/10.1016/j.jbusres.2021.04.067
Bretas, V. P. G., Galetti, J. R. B., Alon, I., & Rocha, T. V. (2024). Do stakeholders matter in entry mode decisions? An investigation of international franchise governance mode choice. Journal of Business Research, 178. https://doi.org/10.1016/j.jbusres.2024.114673
Buso, M., Dosi, C., & Moretto, M. (2025). Optimal Pricing of Public Franchises With Imperfectly Correlated Demand Shocks. Journal of Economics and Management Strategy. https://doi.org/10.1111/jems.12639
Cliquet, G., & Pénard, T. (2012). Plural form franchise networks: A test of Bradach’s model. Journal of Retailing and Consumer Services, 19(1), 159–167. https://doi.org/10.1016/j.jretconser.2011.11.005
Combs, J. G., Ketchen, D. J., Shook, C. L., & Short, J. C. (2011). Antecedents and consequences of franchising: Past accomplishments and future challenges. Journal of Management, 37(1), 99–126. https://doi.org/10.1177/0149206310386963
Croonen, E. P. M., Broekhuizen, T. L. J., & Brand, M. J. (2025). Trust and Control in Franchise Networks: A Dyadic, Multi-Referent Analysis on Franchisee Network Exit Intentions. Entrepreneurship Theory and Practice, 49(1), 129–158. https://doi.org/10.1177/10422587241254724
Dada, O., Perrigot, R., & Watson, A. (2024). Influential factors of pro-environmental behaviors among franchisees in the fast-food sector. Business Strategy and the Environment, 33(3), 2301–2313. https://doi.org/10.1002/bse.3599
Falch, T., Strøm, B., & Tovmo, P. (2022). The effects of voting franchise extension on education policy. Education Economics, 30(1), 66–90. https://doi.org/10.1080/09645292.2021.1939270
Fernández-Barcala, M., González-Díaz, M., & López-Bayón, S. (2022). Choosing contracts to support ALFO strategy: Insights from comparing franchised and managed hotels. Industrial Marketing Management, 105, 94–108. https://doi.org/10.1016/j.indmarman.2022.05.015
Francis-Bayman, S., & Whitehead, A. E. (2024). Role conflict in the director of netball role within a netball super league franchise. Managing Sport and Leisure. https://doi.org/10.1080/23750472.2024.2420780
González-Márquez, R., Rosa-Díaz, I. M., Caro-González, F. J., & Galán-González, J. L. (2023). Where to internationalise and why: Country selection by restaurant franchises. Journal of Retailing and Consumer Services, 72. https://doi.org/10.1016/j.jretconser.2023.103287
Grace, A. R., Frazer, L., Weaven, S., & Dant, R. P. (2016). Building franchisee trust in their franchisor: insights from the franchise sector. Qualitative Market Research, 19(1), 65–83. https://doi.org/10.1108/QMR-09-2014-0085
Grünhagen, M., Watson, A., & Croonen, E. (2025). Going the extra mile: Unveiling the roots of franchisee organisational citizenship behaviours in franchise systems. International Small Business Journal: Researching Entrepreneurship, 43(2), 187–211. https://doi.org/10.1177/02662426241292035
Halim, N. F., Abdul Aziz, Z., Othman, N. H., & Abd Aziz, N. A. (2024). THE IMPACT OF FRANCHISOR SUPPORT ON FRANCHISEE SURVIVAL. Advanced International Journal of Business, Entrepreneurship and SMEs, 6(22), 144–163. https://doi.org/10.35631/aijbes.622011
Harmon, T. R., & Griffiths, M. A. (2008). Franchisee perceived relationship value. Journal of Business and Industrial Marketing, 23(4), 256–263. https://doi.org/10.1108/08858620810865834
Kaufmann, P. J., & Dant, R. P. (1996). MULTI-UNIT FRANCHISING: GROWTH AND MANAGEMENT ISSUES. In Journal of Business Venturing (Vol. 11).
Kaur, P., Kim, S. K., & Gill, P. (2025). When does social media experience improve franchisee performance? A knowledge value chain perspective. Journal of Retailing. https://doi.org/10.1016/j.jretai.2025.10.003
Kraus, S., Breier, M., & Dasí-Rodríguez, S. (2020). The art of crafting a systematic literature review in entrepreneurship research. International Entrepreneurship and Management Journal, 16(3), 1023–1042. https://doi.org/10.1007/s11365-020-00635-4
Lafontaine, F., & Slade, M. (2007). American Economic Association Vertical Integration and Firm Boundaries: The Evidence Author(s): Vertical Integration and Firm Boundaries: The Evidence. In Source: Journal of Economic Literature (Vol. 45, Issue 3).
Lame, G. (2019). Systematic literature reviews: An introduction. Proceedings of the International Conference on Engineering Design, ICED, 2019-Augus(AUGUST), 1633–1642. https://doi.org/10.1017/dsi.2019.169
Lanchimba, C., Kaswengi, J., & Silva-Bitti, E. J. (2025). Strategic participation and local assets: key drivers of franchise performance in an emerging market. Journal of Strategic Marketing, 33(5), 620–638. https://doi.org/10.1080/0965254X.2025.2496214
Le Bot, C., Perrigot, R., Watson, A., & Cliquet, G. (2025). A dynamic integrative view of signaling strategies during the franchisee recruitment process. Industrial Marketing Management, 127, 133–147. https://doi.org/10.1016/j.indmarman.2025.04.002
Li, R., Yang, L., & Yue, X. (2023). Multiperiod channel coordination in franchise networks: The necessity of internal inventory trading and franchiser involvement. Production and Operations Management, 32(11), 3452–3468. https://doi.org/10.1111/poms.14044
Purba, M., Anggusti, M., & Nababan, R. (2025). Implications of Franchise Agreements for Default by Franchisees (Case Study: Decision Number 1064K /PDT/2020). Journal of Legal and Cultural Analytics, 4(1), 67–76. https://doi.org/10.55927/jlca.v4i1.13576
Meiseberg, B., & Ehrmann, T. (2012). Lost in Translation?The Prevalence and Performance Impact ofCorporate Social Responsibility in Franchising (566-595, Trans.). Journal OfSmall Business Management, 50(4).
Michael, S. C. (2022). Investing in entrepreneurs: The case of franchising. Managerial and Decision Economics, 43(8), 3785–3794. https://doi.org/10.1002/mde.3628
Mondal, S., Plumley, D., & Wilson, R. (2023). The other ISL: analysing the finances of the Indian Super League (football) and its franchisees. Managing Sport and Leisure, 28(3), 302–321. https://doi.org/10.1080/23750472.2022.2055625
Newbery, R., McKague, K., Muñoz, P., & Kimmitt, J. (2025). Reconceptualizing Franchisee Performance: A Configurational Approach in a Base-of-the-Pyramid Context. British Journal of Management, 36(1), 17–33. https://doi.org/10.1111/1467-8551.12826
Nyadzayo, M. W., Matanda, M. J., & Ewing, M. T. (2016). Franchisee-based brand equity: The role of brand relationship quality and brand citizenship behavior. Industrial Marketing Management, 52, 163–174. https://doi.org/10.1016/j.indmarman.2015.07.008
Othman, N. H., Ashykin, N., Aziz, A., Hasbollah, H. R., Aziz, Z. A., Amirah, N. ’, Yaziz, M., Hanafiah, M. H., & Halim, N. F. (2023). Franchise Industry: A Systematic Review of Business Survival. Remittances Review. https://doi.org/10.33182/rr.v8i4.263
Priyashantha, K. G., De Alwis, A. C., & Welmilla, I. (2024). Disruptive human resource management technologies: a systematic literature review. European Journal of Management and Business Economics, 33(1), 116–136. https://doi.org/10.1108/EJMBE-01-2022-0018
Proctor, D., Dunne, G., & Flanagan, S. (2023). Towards a model of sports franchise leverage for destination marketing. Journal of Destination Marketing and Management, 30. https://doi.org/10.1016/j.jdmm.2023.100829
Raha, A., & Hajdini, I. (2022). Franchisees with multiple stakeholder roles: perceptions and conflict in franchise networks. Journal of Strategic Marketing, 30(2), 160–179. https://doi.org/10.1080/0965254X.2020.1733052
Ramírez-García, C., Ramón-Jerónimo, M. Á., García-Álvarez de Perea, J., & Vélez-Elorza, M. L. (2024). Risk sources and the effectiveness of the control system in the franchisor’s risk perception management. Industrial Marketing Management, 117, 202–219. https://doi.org/10.1016/j.indmarman.2023.12.024
Sorenson, O., & Sørensen, J. B. (2001). Finding the right mix: Franchising, organizational learning, and chain performance. Strategic Management Journal, 22(6–7), 713–724. https://doi.org/10.1002/smj.185
Sundram, M., & Fourie, A. (2025). The Role of the Petroleum Franchise Ecosystem Actors in Providing Business Support for HDSA Franchisees. International Social Science Journal. https://doi.org/10.1111/issj.70001
Watson, A., Backhaus, C., El Akremi, A., Mignonac, K., & Perrigot, R. (2024). Franchisee well-being: The roles of entrepreneurial identity, autonomy perceptions, and franchisor management practices. Industrial Marketing Management, 123, 386–399. https://doi.org/10.1016/j.indmarman.2024.11.001
Weerasinghe, A. S., Rasheed, E. O., & Rotimi, J. O. B. (2023). Occupants’ Decision-Making of Their Energy Behaviours in Office Environments: A Case of New Zealand. Sustainability (Switzerland), 15(3). https://doi.org/10.3390/su15032305
