LITERATURE REVIEW
A. Franchisors’ Performance Perceived by Franchisee Satisfaction Organizations have used the performance measurement to implement system in the cooperation management between parties. It often includes issues related to satisfaction of customer and stakeholder. Franchisor Performance also refers to the satisfaction of the franchisee with the services given by its franchisor [6]. Franchisee satisfaction is the extent to which a franchisee is contentedwith the franchisor as it affects his or her role in the franchise organization. Satisfaction with the franchisor will positively affect franchise performance [7]. Moreover, managerial implications on franchise system show the efficiency operation and customer satisfaction as the indicator of
franchisor’s performance [6]. The distribution of franchisee responses for the satisfaction items associated with purchasing and operating a franchised outlet, the measurement of franchisee satisfaction required their appraisal of certain costs and benefits and initial and ongoing franchisee support services provided by franchisors [8]. Being satisfied as the behavior in franchise relationship, franchisees’ satisfaction is contingent upon their expectations. Thus franchisors should focus on the specific dimensions that contribute to franchisees’ dissatisfaction and emphasize
specific dimension of continuing service to improve the relationship both parties to fulfill the contractual duties and responsibilities [9]. Thus, franchisors must design a proper system of distribution of goods or services that will help the franchisees to market their products. This will lead to improve satisfaction of franchisees with respect to the services provided by the franchisor [10]