Franchise Relationship in Nigeria: Implicit Challenges to Role Performance as Franchisor

Abstract

Franchise relationships between firms and nations (as either franchisors or franchisees) contribute to macro economic development based on the creation of employment; infrastructural development and generation of income to nations among others. These relationships have shown in-balance against Nigeria. While Nigeria enjoys relatively, the benefits associated with creation of employment and development of infrastructure, it has recorded deficit in income generation as a result of capital flights and profit remittances to franchisor firms and nations. This situation creates trade in-balance against Nigeria. This work established reasons for the high number of franchisor firms and nations in Nigeria as well as reasons for little or no presence of Nigeria firms as franchisors in other nations. The study involved the use of copies of questionnaire (close and open ended structured) that were scaled based on Likert modified ranking principle and the data were analysed using analysis of variance (ANOVA), pearson correlation co-efficient ‘R’, ‘t’ statistics for difference of means, spearman’s rank correlation co-efficiency among others. Identified as problems of poor Nigeria firms’ presence beyond national shores are product oriented, poor disposition of Nigeria firms to direct losses in investment and their management as well as high level of cost evasiveness among Nigeria entrepreneurs. This situation of franchise relationship in-balance could be managed based, on the adoption of pro-active rather re-active management principles, given good choice of franchisees as well as good understanding of the legal environment of franchisees’ nations.