The study investigates the performance effects of postalliance role stress among retail managers. Co‐branded alliances produce dynamic and complex role structures subject to psychological conflict and ambiguity. These co‐branded outlets enable firms to enter markets efficiently, lower relative operating costs, and raise performance. Despite the seemingly ubiquitous use of this strategy, many co‐branded locations yield less than desirable results. The paper employs role theory to investigate whether ambiguity and conflict become more acute in co‐branded outlets. In addition, it investigates whether competence and communication modality constrain role stress. Data gathered with 416 franchisees indicate that co‐branding alliance influences role stress and interorganizational performance.