The Effect of Franchisors' Communication, Service Assistance, and Competitive Advantage on Franchisees' Intentions to Remain in the Franchise System

This study developed and empirically tested a model examining the antecedents of franchisees’ overall satisfaction and intention to remain in a franchise system. Based on a sample from a convenient store franchise system in Taiwan, the results showed that communication is very important in reinforcing franchisees’ trust and overall satisfaction with the franchise system. The results also showed that competitive advantage of a franchise system is the basis for a franchisee's overall satisfaction and intention to remain in a franchise system. However, satisfaction of a franchisor's service assistance did not have direct impact on a franchisee's overall satisfaction toward the franchise system.