The Effect of Franchise Owner’s Regulatory Focus on Renewal and Multi-Store Operation Intention

Purpose: As franchise brands have recently increased in the same industry and formal contracts been standardized, difference support, reputation, sales performance of franchisor has narrowed. a result, it become easier for franchisees to switch other industry, influence unique assets or trust level arising from relationship between headquarters on intention renew also decreased compared past. Accordingly, this study examined factors affecting franchisee’s willingness contract franchisee franchisor, individual characteristics franchisee. Research design, data, methodology: This was conducted by selecting food service which variety low entry barriers high risk. The characteristic divided into promotion focus prevention focus, effect commitment renewal multi-store operation were examined. We postulated that positive impact affective (H1), calculative (H2), negative (H3), (H4). And we (H5, H6), (H7, H8). Results Conclusions: To verify research model hypothesis, first run CFA test validity reliability proposed model. Overall, verification results show measurement exhibits acceptable fit Model (χ2=242.1, df=155, Q=1.56, RMR=0.04, RMSEA=0.06, GFI=0.86, TLI=0.90, CFI=0.92). It is confirmed all items are representative unit study, with average variance extracted values composite exceeding levels 0.5 0.7 respectively. author utilized structural equation Most indices accepted as result analysis (χ2=254.90, df=161, Q=1.58, RMR=0.05, CFI=0.91). All hypotheses supported shown table below. Table 1 Hypothesis (direction) St. Estimate S.E. C.R. H1(+) Promotion → Affective 1.12** 0.26 4.36 Supported H2(+) Calculative 0.81** 0.21 3.84 H3(–) Prevention –0.15* 0.06 –2.39 H4(–) –0.35** 0.14 –4.31 H5(+) Renewal 0.72** 0.15 4.97 H6(+) Multi-store 0.83** 0.24 3.39 H7(–) –0.05 0.07 –0.79 Not H8(–) –0.16 0.19 –0.83 fit: χ2=254.90, CFI=0.91. introduces not adequately explained previous studies, suggested practical academic implications through empirical results.