THE IMPACT OF FRANCHISING ARRANGEMENTS ON MARKETING PERFORMANCE IN SOUTH-EAST NIGERIA’S TEXTILE INDUSTRY

Abstract

This study investigates the relationship between franchising arrangements and marketing performance of textile distributors in South-East Nigeria, grounded in Transaction Cost Theory (TCT) and Resource Scarcity Theory (RST). Using convenient sampling, data were collected and analyzed to examine the effects of franchising on business outcomes. The analysis revealed a positive and significant relationship between franchising arrangements and marketing performance, indicating that franchising motivates entrepreneurs to remain within franchising chains. Additionally, franchising was found to enhance customer satisfaction, increase market share, and provide protection against competitors. The findings suggest that adopting franchising arrangements can significantly improve the marketing performance of textile distributors. It is therefore recommended that textile distributors in South-East Nigeria fully embrace franchising practices to strengthen their business activities and competitive positioning.