Antecedents of restaurant franchisee switching and termination intentions

Abstract

With consideration for the increasing competition among franchise brands, this research empirically identifies the factors influencing franchisee switching and termination intentions in the franchise restaurant context based on the push-pull-mooring framework. A total of 179 responses was collected from restaurant franchisees in the United States and analyzed using partial least squares-structural equation modeling. The results revealed that franchisee dissatisfaction with the present brand influences both switching and termination intentions. The attractiveness of alternative brands and variety seeking characteristics of the franchisee also had impacts on switching intentions. Also, the multigroup analysis was conducted to examine the difference of franchisee behavior depending on the duration of operation. Perceived norms typically were not significant determinants of franchisee behavior, although they were significant among franchisees with short franchise operation. In contrast, variety seeking is an important factor of termination intention among franchisees with long-term relationships with their franchisors. Thus, this study extends our knowledge of franchisee behavior, facilitating formation of effective franchise strategies to maintain long-term relationships.