Correspondence: Rajagopal, Monterrey Institute of Technology and Higher Education, ITESM Mexico City Campus 222, Calle del Puente Ejidos de Huipulco, Tlalpan DF 14380 Mexico. Tel: +52 55 5483 2251; Fax: +52 55 5483 2234; E-mail: rajagopal@itesm.mx; Web: http://www.geocities.com/prof_rajagopal/homepage.html

¹is Professor of Marketing at Monterrey Institute of Technology and Higher Education (ITESM), Mexico City Campus, and Fellow of the Royal Society for Encouragement of Arts, Manufacture and Commerce, London. He has been listed with biography in Who's Who in the World, 2007. He holds a doctoral degree from Ravishankar University, India, and has been conferred the membership (level-II) of Mexican National System of Researchers. He teaches various topics of marketing in graduate, doctoral executive development programmes of the Institute. Dr Rajagopal held key positions in many premier management institutes in India including Administrative Staff College of India.

Received 17 August 2007; Revised 17 August 2007.

Abstract

This paper aims at identifying the attributes of players in the franchising process that contribute in delivering satisfaction in purchasing and operating the outlets in Mexico. The discussion also focuses the impact of cultural diversities in franchisee selection, outlet management and achieving high performance. Franchisee relationship has been evaluated in reference to principal determinants attributing to the enhancement of satisfaction and strengthening franchisor–franchisee ties. It has been observed in the study that the performance of franchisee outlets is a function of outlet attraction, supply and manufacturing management, quality, price and promotional strategies as functional factors. Besides, relational variables including personalised customer services, leisure support and customer convenience also influence the performance of outlets.