The franchise form of business relationship remains both relatively unresearched and under-conceptualized despite its current and increasing importance as a business form in modern capitalist industrial society. A franchise is the synergistic combination of a franchisee and franchisor working together to better serve customers, and the success of the franchise system is a function of how well the franchisee and franchisor perform, together and separately. Given the interdependent nature of franchise relationships, the franchise participants need to understand each other as well as the dimensions and dynamics of their franchise relationship. The purpose of this study is to investigate the various factors relationship. The purpose of this study is to investigate the various factors which influence the development of coopertaive relationship in business format franchising system. Based on commitment theory and marketing literature, eight antecedent factors are identified and nine hypotheses are developed.