The following case study aims to explore the knowledge transfer and its implications in the context of a soft service firm. The complexity of knowledge itself and the knowledge transfer process in service firms brings new challenges. The phenomenon was investigated by the application of grounded theory. Interviews were conducted with employees at a company present in the Quick Service Restaurant segment. It resulted in several findings that were not reported by previous literature. Firstly, within the case company there was multiple formal networks that circulate separately, except for interconnections through the restaurant managers. Within the organization personal relationships proved to be the most important factor for knowledge sharing. Secondly, within a large franchise network, an actor might take the role of knowledge creator due to its size and influence the other franchises in the network. Thirdly, knowledge transfer, implementation and innovation are hindered when work environment is characterized by stress and high pressure to perform. Fourthly, communication improves operation efficiency and employee motivation. This study provides navigations to future research and can be used as guidance in regard to knowledge transfer for practitioners, managers or other interested.