II. 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 contented with 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