Franchising has been proven to be a successful business model, which many entrepreneurs capitalize as a strategy to expand quickly. Most studies on franchise success factors typically focus on franchisors rather than on franchisees and very few were conducted in the Malaysian setting. As most issues on franchise performance were attributed to franchisees’ managerial competencies, more studies are needed to explore these concerns. This conceptual paper aims to delve into the factor of managerial competencies and its influence on the operational performance from the franchisee’s perspective. This paper also conceptualizes that it is crucial to improve franchisees’ competencies as it will enhanced franchisees’ operational performance and eventually contribute to boost franchisor’s profitability.
