Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2022)

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Determinants to Franchisee Retention in Malaysia

Authors
A. M. A. Rahman1, M. Wee2, *, M. Z. Sadik2, N. H. Marmaya3
1Corporate Strategy Department, Perbadanan Nasional Berhad, Melaka, Malaysia
2Faculty of Business & Management, Universiti Teknologi MARA, Cawangan Melaka, Malaysia
3Faculty of Business, Economic & Accountancy, Universiti Malaysia Sabah, Kota Kinabalu, Malaysia
*Corresponding author. Email: nurmelissa@uitm.edu.my
Corresponding Author
M. Wee
Available Online 16 September 2025.
DOI
10.2991/978-94-6463-839-4_120How to use a DOI?
Keywords
Franchisor Support; Franchisor Brand; Franchisor Franchise System; Franchisees Retention
Abstract

Franchisees in Malaysia are worried about how well their franchise businesses are doing. Keeping franchisees happy and involved is crucial to prevent them from leaving, which would lead to a business shutdown. This study explores how franchisee retention is linked to three factors: support from the franchisor, the reputation of the franchisor’s brand, and the effectiveness of the franchise system. A variance-based structural equation model (SMARTPLS) in analyzing the relationship between the variables. A judgmental purposive sampling was conducted for this study with several criteria listed to ensure the credibility of the 87 respondents. The research finds that only the strength of the franchise system significantly affects franchisee retention. Therefore, it is vital for franchisors to focus on building a robust franchise system to keep their business partners committed.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
16 September 2025
ISBN
978-94-6463-839-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-839-4_120How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - A. M. A. Rahman
AU  - M. Wee
AU  - M. Z. Sadik
AU  - N. H. Marmaya
PY  - 2025
DA  - 2025/09/16
TI  - Determinants to Franchisee Retention in Malaysia
BT  - Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2022)
PB  - Atlantis Press
SP  - 1518
EP  - 1526
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-839-4_120
DO  - 10.2991/978-94-6463-839-4_120
ID  - Rahman2025
ER  -