This thesis studies the effects of franchisers' control and support on conflict between franchisers and franchisees, and on renewal intention of franchisees. The relationship between the variables is estimated using a structural equation model, in whi...
This thesis studies the effects of franchisers' control and support on conflict between franchisers and franchisees, and on renewal intention of franchisees. The relationship between the variables is estimated using a structural equation model, in which control and support variables are used as explanatory variables and conflict and renewal intention variables are used as dependent variables. Data were collected from the survey on 198 food service franchisees located in Anyang city. The structural equation model was estimated using AMOS statistical package. Estimation results of the statistical model are as follows. It was estimated that control of franchisers affected conflict positively but not significantly, implying rejection of the hypothesis. However, the coefficient of franchisers' support was estimated as positive and significant, implying acception of the hypothesis. Control and support showed high correlation between them as hypothesized. It was estimated that control affected renewal intention positively and significantly, indicating rejection of the hypothesis. In contrast, the hypothesis that support impacts renewal intention positively was accepted by having a significantly positive coefficient. Lastly, a coefficient for conflict was estimated as significantly negative as anticipated in the hypothesis. Control showed significant direct impact but insignificant indirect impact on renewal intention. Support showed both significant direct and indirect impact on renewal intention. From above empirical results, we can conclude that franchisers should emphasize importance of control and support management in operation of the franchise system. In particular, franchisers have to manage conflict between franchisers and franchisees by controling franchisees appropriately and should have good relationship with franchisees by strengthening their support to franchisees.