This thesis aims to investigate the performance of different types of franchisees, in terms of perceived market share and profitability, are affected by constrains defined by the theories of franchise selection and contractual terms. The two different types of franchisees researched include novice and parallel. This begins by examining how the constraints defined by the Resource Base, Social Exchange and Equity theories of franchise selection are applicable to entrepreneurs who want to become franchisees, and by examining the differences in the attitude of franchisees toward contractual terms. The main contribution is that the research broadens and extends other franchising and entrepreneurship studies by exploring external and internal factors to examine perceived franchisee performance. Therefore, this study relates the criteria used by franchisees in the selection of potential franchisors and contract clauses, to their performance in the Kingdom of Saudi Arabia, and the Sultanate of Oman in the food and beverage sector. Moreover, existing research has primarily focused on the perspective of franchisors and has not adequately explored the franchisee’s perspective on determining success. Therefore, this study contributes to franchising literature by broadening the scope of existing theories.

This thesis aims to investigate the performance of different types of franchisees, in terms of perceived market share and profitability, are affected by constrains defined by the theories of franchise selection and contractual terms. The two different types of franchisees researched include novice a...