This study applies the resource-based view and relationshipmarketing
theory to franchising. This study also establishes franchisors'
resources and relationships with franchisees to explain franchisees'
strategy choices for franchisees performance. Existing franchising literature
offers scarce theoretical explanations for how franchisees determine
their franchise strategy and what factors affect franchisees'
performance. This study provides an initial step toward explaining franchising
strategy and performance. The study also provides support for
the resource-based viewand relationship-marketing theory as explanations
for franchisees' performance in chain stores. Understanding why
franchisees succeed is important because franchising is important for