An exploratory study of franchisee turnover and its relationship with franchisee satisfaction

The purpose of this study is to investigate franchisee turnover practice and empirically test the relationship between franchisee satisfaction and turnover behavior.

A total of 402 franchisees of a quick service franchise system were surveyed by using two sets of structured questionnaires. Sixty-seven current and 24 terminated franchisee participated in the study, yielding a response rate of 29.8%. Based on the objective and research questions, two hypotheses were established and tested.

The testing of the hypotheses indicated a significant difference between the satisfaction of terminated and current franchisees on service support, social interaction, and general satisfaction. Also, there is a relationship between franchisee’s satisfaction and his or her future intention. Through factor analysis two critical factors were identified closely related to the satisfaction and future intention of current and terminated franchisees.