Predictors of Franchisee Performance: The Role of Communication, Conflict and Satisfaction

Abstract

This study examines the relationships between communication, conflict, a franchisee’s economic and social satisfaction, and a franchisee’s performance in the context of the franchise systems. Surveying 141 franchisees in Texas, the authors found that communication has a significant negative effect on conflict and has a significant positive relationship with economic and social satisfaction as expected by previous research. However, conflict has a significant positive effect on a franchisee’s social satisfaction, a reversed effect from what has been reported in previous research. This implies that some level of conflict can be positive and harmless. There are nine hypotheses, five of which are supported. A brief discussion and the limitations of the findings conclude the paper.