The Factors Affecting on the Franchisor's Performance, Satisfaction and Recontract Intention

Focusing on the Chinese Franchise Market

In this research, we investigate the factors affecting on the recontract intension of franchisor in the uprising Chinese franchise market. Based on the previous study, we extract the four constructs: characteristics of franchisor, features of franchisee, relationship, and environmental uncertainty. We hypothesize that these four factors influence the performance and satisfaction of franchisor, and both performance and satisfaction influence its recontract intention in the end. In order to examine these hypotheses empirically, we conducted a survey on the 400 franchisors in China. By analyzing the data, we can confirm most hypothesis supposed. Characteristics of franchisor, franchisee, and their relationship influence the performance and the satisfaction of franchisor along with environmental uncertainty. However, in specific, the control of franchisor and the commitment of franchisor do not significantly influence on the performance. Trust, commitment and conflict in their relationship do not affect significantly on the performance and the satisfaction neither. The performance and satisfaction of franchisor positively influence the recontract intention of franchisor. This study thus provide franchisors and practitioners, who plan to extend their franchising business abroad into Chinese market, with some practical knowledge.