Many theories discussing about the motivations for franchising, one of the most popular theories is explored from the perspective of resource constraint. Oxenfeldt and Kelly first put forward this kind of argument; they argue that franchising is advantageous to a franchisor in the early stage because of lacking some kind of resources including capital, management talent, knowledge of local market conditions and human resource. They also suggest that franchisors will buy back the profitable outlets as franchisors got enough resources based on the organisational lifecycle theory. However, in this research, the author uses two contrast industries, which are product based (convenience store) and service based (estate agency) to be a comparative study. In addition, various ownership patterns are also highlighted in either industry. By a cross case and within case study, the findings suggest that there are many conflict points against this theory, such as constraints on capital, management talent and buying back franchisees.