The Effect of Trust and Justice with Franchisor on Relation Satisfaction and Long-term Commitment in Franchise Business

T This study examined a lot of adverse effects in the press that increased in proportion to remarkable growth of various kinds of franchise businesses based on food service business. These days, franchisee's trust and justice with franchisor became social problem, and the study investigated relation satisfaction and long-term commitment between franchisor and franchisee. The results of this study are as follows: A casual analysis was done to test research model to have satisfactory fit index, for instance, χ² = 46.694, df=10, p=.000, GFI=0.946, AGFI=0.850, RMR=0.034, NFI=0.966, CFI=0.973, so that the research models were found to be suitable. Each hypothesis was found to have positive influence upon not only long-term commitment but also relationship satisfaction. Justice with franchisor had positive influence upon trust, and relation satisfaction that franchisees cognized was found to have positive influence upon long-term commitment. The justice that franchisee thought of franchisor did not have significant influence upon long-term commitment. Not only franchisor but also franchisee was independent business and franchisor could not provide its franchisees with profits to be of no help at long-term commitment, that was applied to franchise business like Yang et al.(2010)'s previous study. Not only trust sub-factors but also justice sub-factors had long-term commitment, and not only identification-based trust but also knowledge-based trust was more important than calculus-based trust was. The distributive justice was thought to be more important than procedural justice was, so that distributive justice could be strengthened. The study investigated hypothesis that trust could mediate justice and long-term commitment and relation satisfaction could mediate long-term commitment: Not only trust but also relation satisfaction was found to be important for long-term commitment. And, the study gave implications as well as future research directions.