From franchisor support and communication to franchisees’ perceived performance: a case of café franchise in Thailand

Abstract

Purpose – This study aims to investigate the effects of franchisor support and communication on franchisees’ trust in the franchisor and satisfaction with the franchise partnership, thereby positively influencing their perceived operational and financial performance. Previous studies have provided empirical evidence of communication and support as key in nurturing franchise partnerships. Yet, both factors have not been investigated together in a single study to explore franchisees’ experiences with the franchisor and the franchise system. Therefore, this study employs Social Exchange Theory as a theoretical foundation to examine the effects of franchisor communication and support on franchisees’ trust, satisfaction, and overall franchise performance. Design/methodology/approach – An online survey was conducted with 221 franchisees of a leading café franchise brand from Thailand, invited through online franchise business communities. Findings – Both communication and support enhance franchisees’ trust in a franchisor and satisfaction with the franchise partnership. Satisfaction then positively influences franchisees’ perceived performance. Specifically, through satisfaction, the effect of trust on franchisees’ performance is enhanced. Originality/value – This study first highlights that both perceived support and communication are expected from the franchisor, from the franchisees’ perspective. Positive evaluations of these lead to their trust in a franchisor and satisfaction with the franchise partnership, influencing their perceived performance. Then, it shows that trust in a franchisor is the underlying mechanism, enhancing the effects of franchisor communication and support on franchisees’ satisfaction with the franchise partnership. Finally, satisfaction with the franchise partnership serves as a link between their trust in a franchisor and their perceived performance.