Stakeholders must be considered and addressed to contribute to profitability. Because the
profitability will be represented as net return on investment, many companies often fail to reflect
customer perceptions that influence their future purchase intentions (Johnston et al., 2010; Kaplan &
Norton, 1992). The organizational barrier to deliver high quality service performance is measured by
customer perceptions and expectations. Moreover, Corporate Social Responsibility has become a
powerful marketing tool to build customer satisfaction because social responsibility initiatives can
enhance perceived service quality that influences customer expectations with products and services
(Poolthong & Mandhachitara, 2009). Roh and Ji-Hwan (2009) found that franchisees were not satisfied
with franchisors’ lack support to them to run the business. Franchisors should emphasize specific
dimensions of continuing services to improve the franchise system to fulfill their contractual duties and
responsibilities. Few studies have empirically tested the social responsibility in franchise business area.
Based on empirical findings, hypothesis 4 is stated as below.