While franchising has blossomed into a major business form during the past two decades, the competition among franchisors has increased and franchisee's switching has been frequent. franchisor has been interested in keeping existing franchisees, in ad...
While franchising has blossomed into a major business form during the past two decades, the competition among franchisors has increased and franchisee's switching has been frequent. franchisor has been interested in keeping existing franchisees, in addition to acquiring a new member. In this study we focus on a conceptual model for franchisee's re-contract intention.
Based on the findings in previous studies, I have identified a variety of antecedents for the franchise store performance and satisfaction. The determinant variables of performance and satisfaction can be grouped into three major categories such as franchisor characteristics, interrelationship characteristics, franchisee location characteristics. Propositions relating these variables to the dependent variables, franchisee performance and satisfaction and recontract, have been tested using data collected from the manager(232 stores) of 'S' Franchise Retail Stores. The proposed model was tested using SPSS10.0 version.
Through an empirical work, I get the conclusion that the re-contract intention is influenced by franchisee's satisfaction and performance. Franchisee's satisfaction is influenced by franchisor characteristics, interrelationship characteristics. Franchisee's performance is influenced by interrelationship characteristics, franchisee location characteristics.