Managing Knowledge Transfer in Nigerian Franchise Systems: Challenges for Domestic Franchisors

This study examines the knowledge transfer challenges confronted by domestic Nigerian franchisors as they expand their franchise networks, investigating how indigenous Nigerian franchise systems manage the replication of business model knowledge across geographically and culturally diverse franchisee locations. Franchising represents a significant enterprise growth and entrepreneurship development mechanism, and the growth of domestic Nigerian franchise brands in fast food, retail, health and beauty, and professional services reflects increasing interest in franchising as an expansion vehicle. The study employs a qualitative multiple case study methodology, examining four established domestic Nigerian franchise systems operating in Lagos, Abuja, and multiple secondary cities. Data were collected through semi-structured interviews with franchise owners, franchise managers, and franchisees at multiple network locations. Thematic analysis examined knowledge transfer mechanisms, quality maintenance challenges, and franchisee support structures. Findings reveal that systematic operations manuals and structured initial training are the primary formal knowledge transfer tools, but that informal knowledge, particularly the tacit customer relationship and quality management skills of successful company-owned outlets, is the hardest to transfer to new franchisees. Franchisee selection quality is identified as the single most important determinant of knowledge transfer success, with unsuitable franchisee profiles creating persistent quality problems. Geographic diversity in Nigeria's consumer culture requires some degree of local adaptation that can conflict with brand standardisation. Recommendations include the development of a Nigerian Franchise Association certification standard for franchise training and knowledge management systems. Keywords: franchise management, knowledge transfer, domestic franchise, Nigeria, entrepreneurial growth.