Franchising Agreement and Business Performance of Franchise Holders in Zambales

ABSTRACT: The franchising agreement is essential because it shapes how franchisees understand their responsibilities, manage their operations, and sustain business performance. This study was conducted to examine how the franchising agreement relates to the business performance of franchise holders in the province of Zambales. There remains limited local evidence on how franchisees perceive key agreement provisions and how these perceptions are associated with actual business performance. The study used a descriptivecorrelational design and purposively gathered data from 100 franchise holders in Zambales to assess their business performance, and perceptions of the franchising agreement in terms of fees and financial obligations, territory rights and competition, training and ongoing support, operational standards, advertising and marketing, termination clauses, and profit sharing. Results showed that franchisees generally had a positive perception of the franchising agreement and assessed their business performance favorably, with significant differences when grouped according to age and years of franchise operation with more favorable assessment coming from older franchisees, and those with longer years of operations. The findings also revealed a high correlation between franchising agreement and franchise business performance, suggesting that clearer, fairer, and more supportive franchise arrangements may contribute to better business performance outcomes.

KEYWORDS : Franchising Agreement, Franchising Business Performance, Franchising Fees, Franchising Profit Sharing, Franchising Termination