Title: Factors that drive the perceived success of franchises in South Africa

Authors: Stefanie De Wet; Geoff Bick; Russell Abratt

Addresses: Graduate School of Business, University of Cape Town, Portswood Rd., Greenpoint, Cape Town, South Africa ' Graduate School of Business, University of Cape Town, Portswood Rd., Greenpoint, Cape Town, South Africa ' School of Business, George Mason University, 4400 University Drive, Fairfax, VA 22030, USA

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.

Keywords: franchising; South Africa; customer relationships; emerging markets.

DOI: 10.1504/IJBEM.2021.112776

International Journal of Business and Emerging Markets, 2021 Vol.13 No.1, pp.52 - 73

Received: 19 Jan 2020
Accepted: 03 Jun 2020
Published online: 02 Feb 2021 *

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