Why does franchisor social responsibility really matter?

This study examines the impact of franchisor social responsibility (FSR) and franchisor image on franchisees. Based on prior research, the study hypothesizes that FSR and franchisor image influence qualities of the relationship with the franchisees (e.g., franchisee trust, franchisee satisfaction). The model was tested on the data collected from food service franchisees in South Korea. The study finds that FSR and franchisor image are critical for building franchisees’ trust in the franchisor, which affects franchisees’ satisfaction and their long-term orientation. We offer several implications related to the findings.