This is one of the first studies to explore customer retention in reference to the franchisee–customer relationship. A subsequent objective was to examine localization and standardization from a franchise unit and system-level perspective. Data was collected using a self-administered survey based on customers of pet grooming services in Australia. Findings suggest that the addition of a customer retention perspective reveals a greater depth to the franchisee–customer relationship. Importantly, this implies that there are additional factors likely to influence franchisee–customer retention within franchise outlets. We suggest that individual franchise units, in cooperation with local customers, should co-create local marketing initiatives.