This study investigated the relationship between franchising arrangements and marketing performance of textile distributors in South-East, Nigeria. The study was anchored on Transaction Cost Theory (TCT)) and convenient sampling was employed in order to reach the study objectives. The analysis revealed positive and significant relationship between the variables investigated. The findings revealed that franchising is a factor that motivate both intending and existing entrepreneurs to remain or enter into business. Multiple unit franchising has a strong and positive relationship between customer satisfaction and market share. Conclusively, franchising has a positive and significant relationship with marketing performance. It was recommended that textile distributors in South-east, Nigeria should fully adopt the practice of franchising in order to boost their business activities.