Measuring and managing franchisee satisfaction: a study of academic franchising

Purpose This paper attempts to explore different approaches of franchisee satisfaction within an academic setting, develop and validate a new measuring instrument, examine the key factors and the intention to remain in the network, and eventually manage the franchise network for long‐term continuity. Design/methodology/approach The survey instrument was drawn from a multi‐stage process involving extensive review of literature, focus group interviews, pilot testing and validation by the experts before being administered to a sample population consisting top managers of franchised colleges. The new instrument was empirically tested for unidimensionality, reliability and validity using both exploratory and confirmatory factor analysis. Findings The findings suggest five dimensions of franchisee satisfaction namely social interaction, service support, financing, assurance and competence. Results also indicate that the dimension “competence” which relates to possession of required skills, knowledge and the right attitude to perform franchise services has significantly influenced the overall satisfaction. Research limitations/implications The five dimensions of franchisee satisfaction may be specific to academic setting. Practical implications Academic institutions should be able to ascertain the level of services provided, and to determine which dimensions need improvement. Knowing the strengths and weaknesses of these dimensions and their relative influence may result in better allocation of resources so as to provide a better service to the franchised colleges. Originality/value Another contribution to the franchising literature by advancing a new 23‐item measuring instrument, specifically tailored for academic franchising. This is a tool that academic institutions could use to improve their performance in the light of increased competition with the development of global academic franchising.