Franchising Arrangements and Marketing Performance of Textile Industries in South – East Nigeria

Abstract

This study investigated the relationship between franchising arrangements and marketing performance of textile distributors in South-East, Nigeria. The study was anchored on Transaction Cost Theory (TCT) and Resource Scarcity Theory (RST). Convenient sampling was employed in order to reach the study objectives. The analysis revealed positive and significant relationship between the two variables that was investigated. The findings revealed that franchising arrangement is a factor that motivates entrepreneurs to remain in franchising chain. Franchising has a strong relationship with customers’ satisfaction and market share, and protects entrepreneurs against competitor. Conclusively, Franchising Arrangements have positive and significant relationship with marketing performance. It was recommended that textile distributors in South-East Nigeria should fully adopt the practice of franchising arrangements in order to boost their business activities.