An Assessment of Franchise Business Models in Nigeria: A Study of Quick-Service Restaurants in Kaduna State
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Background of the Study
The franchise business model involves a contractual relationship between a franchisor and a franchisee, where the franchisee operates a business using the franchisor's brand, systems, and support. In the quick-service restaurant (QSR) industry, franchising enables businesses to expand rapidly while maintaining consistency and brand identity (Adewale & Yusuf, 2024).
In Kaduna State, the QSR industry has experienced growth driven by urbanization and changing consumer preferences. Franchising has played a significant role in this growth, providing entrepreneurs with established business models and operational support. However, challenges such as high franchise fees, compliance issues, and market competition persist (Okoro & Hassan, 2023).
This study explores the franchise business model in the context of QSRs in Kaduna State, focusing on its benefits, challenges, and impact on business performance.
Statement of the Problem
While franchising offers significant advantages, many QSRs in Kaduna State struggle with high costs, strict franchisor requirements, and market competition. The effectiveness of the franchise model in addressing these challenges and driving business success remains underexplored (Bello & Yakubu, 2025).
This study assesses the franchise business model, providing insights into its applicability and impact on the QSR industry in Kaduna State.
Objectives of the Study
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To evaluate the benefits of the franchise business model for QSRs in Kaduna State.
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To identify the challenges associated with the franchise model.
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To recommend strategies for improving the effectiveness of franchise operations.
Research Questions
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What are the benefits of the franchise business model for QSRs in Kaduna State?
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What challenges do QSRs face in adopting the franchise model?
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How can the franchise model be improved to enhance business performance?
Research Hypotheses
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The franchise business model significantly enhances business performance.
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High franchise costs and compliance requirements hinder the growth of QSRs.
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Effective franchise operations improve customer satisfaction and profitability.
Scope and Limitations of the Study
This study focuses on quick-service restaurants in Kaduna State, analyzing the franchise business model and its impact on performance. Limitations include variations in franchise agreements and external market factors.
Definitions of Terms
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Franchise Business Model: A system where a franchisee operates a business using the franchisor's brand, systems, and support.
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Quick-Service Restaurants (QSRs): Establishments that provide fast food services with limited table service.
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Franchisor: The entity that owns the brand and business system in a franchise agreement.
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