Previous literature has acknowledged franchising as a great way for businesses to expand into new areas and opportunities. It has become a popular option for those who are looking to start their businesses by choosing a well-known company’s brand name and a ready-made business operation, or existing entrepreneurs who want to franchise their firms. Franchising a business contributes to the GDP of the countries involved, including Malaysia. However, little is known about what drives the growth of franchised firms, particularly in emerging countries such as Malaysia. Hence, this study aims to identify the growth factors of franchising, from both the franchisors’ and franchisees’ viewpoints. Therefore, from this dyad relationship, the analysis can provide comprehensive views of the growth factors of franchises. Interestingly, as this study was conducted during the pandemic COVID-19, the findings would include the pandemic situation that reflects the business environment. Therefore, the case study method was adopted, which involved semi-structured interviews with five service firms from two different brands, including franchisors and franchisees. The findings show that three growth factors emerged from this study: product and service innovation, franchisor-franchisee tolerance, and government support. This study contributes to obtaining a deeper grasp of the growth factors of franchisors and franchisees. Moreover, this study contributes to developing an effective franchising business process model as guidance for franchisors, franchisees and policymakers. This study also provides avenues for future research.

The franchising sector demands a high level of assurance and commitment. This is because creating entrepreneurial value is at the core of any franchising strategy. However, little is understood about what causes franchised businesses’ critical success factors, particularly in developing nations like Malaysia. Hence, this study aims to identify the critical success factors in franchising business firms. The characteristics of franchisors and franchisees that can contribute to the franchise system’s success in Malaysia were discovered using a focus group method by inviting franchisors and franchisees who are already running their businesses. In addition, Perbadanan Nasional Berhad (PERNAS) and the Malaysian Franchise Association (MFA), together with academicians, were also invited as a part of the focus group discussion. The findings show that three critical success factors emerged from this study, the franchisor’s capability, interconnection with franchisees, and constant innovation. These three elements demonstrated that there is still room for a more significant expansion. Therefore, anyone considering joining a franchise should know it is an option. Additionally, this research helps produce a valuable model of the franchising business process that regulators, franchisors, and franchisees can use as a guide. Finally, this study also offers directions for further research.