Lunday

Research Journal of the Graduate School of Bulacan State University

Print ISSN 1656-3514

Online ISSN 2980-4353

https://orcid.org/0000-0001-6644-0736

Abstract

This study examined the influence of organizational climate and franchise support on franchisees’ intention to remain in the franchise system, with trust serving as a moderating variable. Conducted among 81 food franchisees in San Fernando, Pampanga, the study employed a purposive sampling method and used a modified, validated questionnaire with a 4-point Likert scale. Regression analysis revealed that both organizational climates, particularly leadership consideration, autonomy, and reward orientation, and franchise support, including marketing and training programs, significantly influenced the intention to stay in the franchise business. At higher levels of trust, franchise support had a stronger moderating effect, further enhancing franchisees’ commitment. The findings highlight that tangible factors, such as training and marketing support, and intangible factors, such as trust and autonomy, work together to drive retention. Practical recommendations include fostering a supportive internal climate and consistently providing responsive external support aligned with franchisee needs, reinforcing both loyalty and long-term engagement in the system.

Keywords: Trust, Organizational Climate, Franchise Support, Franchise System

Introduction

The importance of entrepreneurship as an engine of global growth has increased, along with a corresponding acceptance of the franchise as a prominent and promising business format. This new trend signifies franchising as a considerable and aspiring investment class. The one thing that franchising can provide to an individual is a valuable business opportunity where they can operate under a big brand, accumulating significant equity. A vast body of literature highlights the importance of organizational environment and support systems in promoting employee retention, satisfaction, and effectiveness. This is also crucial in building franchisor-franchisee relationships due to their complexity. For instance, Monroy et al. (2018) documented effective franchiser-franchisee communication as a key factor in fostering trust and promoting the continued growth of a relationship. This can be asserted as the importance of communication as a precursor to working partnerships.

On this note, performance largely hinges on the dynamics of these relationships, as trust implies unrestricted communication, which is significant in highly collaborative and entrepreneurial settings (Monroy et al., 2018). More recent studies on franchising have found that mutual trust not only facilitates open channels of communication but also validates long-term commitment between franchisors and franchisees, thereby considerably enhancing overall franchise performance (Monroy et al., 2018). Restating the trust-performance relationship, another association has been identified in numerous instances where coordinated relationships have led to mutual growth and performance, especially in systems with high interdependencies and structured agreements.

Despite the positive developments, problems persist in many franchising systems, particularly within economies still considered part of the developing world, such as the Philippines. Issues of franchisee retention and sustainability remain high, and numerous variables conspire against them. While considerable attention is given to the importance of the organizational climate and support system in relation to franchisee retention, only a few studies have been conducted in localized conditions. This can be an exemplary case of why the effects of organizational support on franchisee commitment remain largely underexplored, which encompasses resources and training, as the study concludes (Iddy & Alon, 2019; Khan & Raeside, 2017). Still, other research avenues leading to relationship trust, a crucial relational variable, have not been exhaustively explored within this setup to determine whether trust moderates the relationship between organizational support and climate in influencing the retention behavior of franchisees.

The study aims to rigorously assess the interactions between organizational climate, franchisor support, and franchisees' intentions to stay within the franchise system. Specifically, it examined to what extent trust moderates the relationships between organizational climate and franchisee retention and support in the franchisor-franchisee interrelations, leading to a stronger franchisee commitment. The present study has been extended to franchisees in small- and medium-sized enterprises (SMEs) operating in San Fernando, Pampanga Province, where the role of franchising in local economic activities is quite pronounced. By doing so, the study provides context-specific and regional-level data that pertains to the intricate model by which franchise systems work within the Southeast Asian economic landscape.

The findings undoubtedly enhance the existing literature on the joint effect of structural elements of organizational climate and support, as well as relational factors referred to as trust, among franchisees in franchising. Thus, the research provides some empirical insights to bridge the existing gaps in franchising discourse within Southeast Asia. Needless to say, the implications of this research extend beyond academia to provide practical support for franchisors, fostering long-term relationships by ensuring brand consistency across multiple franchised operations. The insight drawn here can, therefore, be of immense use to policymakers and other franchising institutions in deciding which policy measures to adopt for effective partnerships among franchisors and franchisees within SMEs, where sustainable economic growth can also be achieved.

In addition, one must consider the pivotal role the entrepreneurial ecosystem plays in advancing franchises as engines of an economy. It is an elaboration on how interconnected elements within the entrepreneurial ecosystem can make way for supportive policies and bolster collaborative networks good for entrepreneurial activities (Stam & Ven, 2019). Therefore, Content et al. (2019) and Ács et al. (2018) have suggested that successful ecosystems have policies that also foster innovation and employment while supporting franchise sustainability, comforting conditions, and better retention metrics. Thus, while the deeper value of franchises evolves in that discussion, the focus within this paper considers the surrounding economic setup in which the franchises are enforced. They set forth plausible ideas to use in framing appropriate interventions targeting the concerns of franchisees for their growth.

Any policy framework in place that integrates into the ecosystem for doing entrepreneurship favorable activities would intensify franchising activities, notably in less-developed areas. A lighter burden for administration on startups, coupled with the enclosures for easier access to financial sources, can go a long way, alleviating the challenges of refusing active participation with franchisee endeavors (Alheet, 2019; Khan, 2018). Public funding hands in glove operated with private investments and entrepreneurial efforts equally illustrate, in a broader sense, the multicomponent nature of backing a franchise system on a local edge.

Extrapolating the research by Doran et al. (2018) and Rusu et al. (2022) once more reinforces that entrepreneurial engagement is paramount to the sustainability and expansion of regional economies and job growth. It points to specific organizational and relational constructions for this purpose and how to promote them toward greater support for their emergence into the broader entrepreneurial literature. Therefore, the interest elaborates not only on the academic contest as EF might entail but also on how it gives hints into more theoretical outlooks that could lead to empirical tests into better understanding how franchises operate and still be relevant in an ever-changing, competitive, and evolving market.

The actions of such good scholars, practitioners, and policymakers urgently lead the investigation on organization-interactional trusts inside franchise systems. By propping up a comprehensive analytical view of both the structural and relational sides, one would have a fresher sense of the complexities surrounding franchisee retention.  By convening-in a holistic evaluation, the researcher set in motion crucial research steps, updating each and each understanding in further of that shared current and kaleidoscopic interplay, which is seemingly an interrogation of globalization waves and technological progress in relation to the entrepreneurship and businesses with the working frame as franchising (Amoa‐Gyarteng & Dhliwayo, 2025; Dahlstrand et al., 2018).

Renewed commitment in the world of scholarship makes franchises really relevant to entrepreneurship issues by following the pattern of the current global context but in a manner that addresses problems from the developing economies because of the complexities of varying economic environments. In nurturing research that seeks to explore these multidimensional aspects, theoretical frameworks and practical interventions become more robust for the ever-evolving entrepreneurial landscape of the franchising domain (Agu et al., 2021). Such endeavors contribute to cultivating a robust ecosystem that supports entrepreneurial endeavors, particularly in burgeoning markets seeking to harness the potential of franchising as a means of economic advancement.

Statement of the Problem

1. How may the level of organizational climate be assessed in terms of:

1.1 Initiating Structure,

      1.2 Leadership Consideration,

      1.3 Autonomy, and

      1.4 Reward Orientation?

2. How may the degree of support of franchisors in the franchise system be measured?

3. How may the level of trust of franchisees in the franchise system be measured?

4. How does the intention to remain in the franchise system describe?

5. Does the organizational climate significantly affect the franchisees’ intention to remain in the franchise system, controlling for the trust variable?

6. Does the franchise support significantly affect the franchisee’s intention to remain in the franchise system, controlling for the trust variable?

Review of Related Literature 

In examining the intricate relationships among organizational climate, franchise support, and the intention to remain in a franchise system, particularly through the lens of trust, an in-depth understanding of existing literature reveals significant dimensions surrounding these themes. This literature review synthesizes current scholarly works published from 2018 to 2024, highlighting the role of organizational climate on employee retention and franchisee behavior, the impact of franchise support on franchisee satisfaction and commitment, the moderating effect of trust, and the overall dynamics within franchisor-franchisee relationships, with a focused lens on the Southeast Asian context, especially the Philippines.

Organizational climate encompasses the shared perceptions and attitudes within a given organization about its environment, practices, and policies, significantly influencing employee behaviors and retention. A constructive organizational climate is a great setting for engagement, which, in turn, translates into greater employee retention rates of franchise systems (Haholongan & Kusdinar, 2019; Oanh et al., 2023). They further propose that a more participative organizational climate, in which employees feel that their contributions are recognized and that they have been given the opportunity to participate, can enhance innovative behaviors that are of paramount importance for gaining competitive advantage in franchise operations. An inclusive organizational climate also engenders a sense of belonging among its employees, thereby increasing their commitment levels and improving retention (Lee & Shin, 2024).

This research shows that a supportive organizational climate increases job satisfaction and emotional wellness, thus reducing burnout while promoting organizational citizenship behaviors (Oanh et al., 2023). Of such behavior formation is exceptionally important for the franchise system since the franchisee-operates relatively independently yet remains influenced by the wider organizational setting operated by the franchisor itself. The better the perception of the organizational climate of franchisees' employees, the better their emotional resilience, and the easier it would be for them to remain despite the external pressures of the business (Shrestha & Parajuli, 2020). These argue that a supportive working environment should be enhanced, especially in tough economic times.

Franchise support refers to a set of technical, operational, and relational assistance from franchisors to franchisees. This system is instrumental in fostering franchisee satisfaction and loyalty, which in turn affects their intention to stay within the franchise system (Dada et al., 2023; Mináriková et al., 2019). Thorough operational training programs, marketing support, and further educational opportunities are great contributors to franchisee satisfaction (Filipiak et al., 2023). Moreover, the relational side, such as communication and trust-building initiatives, may bolster franchisee-firm relationships and further strengthen their commitment to franchisors' brand and system (Mináriková et al., 2019; Lee & Lee, 2020).

Among other studies, Kim & Park (2023) showed that such support has made franchisees feel empowered to be competent, and firms run their businesses better with greater support from the franchisor. Meeting expectations in terms of performance is therefore supported with a positive perception of the franchise system and its sustainability. In addition, Dada et al. (2023) and Mináriková et al. (2019) show that higher levels of technical and operational support reduce the turnover of franchisees by aligning individual business goals with those of the organization. Therefore, creating a tailored system of support that best reflects the diverse needs of their franchisees in different market arenas becomes important for franchisors.

Trust serves as a central moderating variable in the relationship between organizational climate and franchisees’ intention to remain. It facilitates collaboration among franchise stakeholders, underpins the effectiveness of organizational support mechanisms, and enhances relational ties that strengthen satisfaction, commitment, and long-term engagement (Mináriková et al., 2019; Hicklenton et al., 2019; Dada et al., 2023; Lee & Lee, 2020; Filipiak et al., 2023). Similarly, higher trust levels within the franchisor–franchisee dynamic foster alignment with organizational goals, encourage resilience during challenges, and promote proactive behaviors such as feedback-giving and joint innovation. These outcomes are reinforced by trust-building measures, including open books, consistent communication, and transparent operational practices, that reduce perception gaps between organizational climate and operational realities.

In line with these findings, studies in developing economies, including the Philippines, reveal that trust acts as a “relational currency” in franchising, particularly in small and medium enterprises where resource constraints make cooperation essential. Respect, shared goals, and transparency form the foundation of this trust, creating environments attractive to franchisees and motivating sustained financial and operational investment. Moreover, cultural factors, economic fluctuations, and market dynamics shape the way franchisees perceive their roles, making adaptive support and trust-building essential for retention and commitment.

Research indicates that when franchisees perceive their franchisor as trustworthy and receive reliable support, they report a higher intention to remain in the system (Mináriková et al., 2019; Lee & Lee, 2020; Filipiak et al., 2023). This underscores the importance of an integrated approach to franchise management that combines a positive organizational climate, robust support mechanisms, and sustained trust-building practices to ensure franchisee loyalty and long-term system sustainability.

As the franchise setting continues to develop, especially in developing economies, the understanding of these relationships will matter for both franchisors and franchisees. Having an empirical thrust that descends from trust-building initiatives and a responsive organizational climate would enhance franchisee retention and create strong franchise networks for sustainable development.

This is Figure 1, which gives the overall conceptual model to guide this research in which the intention to remain in the franchise system is investigated with respect to organizational climate and franchise support, trust being a moderating variable. The independent variables are organizational climate and franchise support. Organizational climate is measured according to four dimensions: initiating structure, leadership consideration, autonomy, and reward orientation. Franchise support is assessed through three components: financial support, marketing support, and training programs. The dependent variable, intention to remain in the franchise system, is operationalized through three indicators: choosing to remain, planning to remain, and willingness to remain. Positioned between the independent and dependent variables is the moderating variable, trust, which is hypothesized to influence the strength or direction of the relationship between the predictors and the outcome variable. This framework reflects the study’s aim to assess how internal organizational dynamics and external support mechanisms shape franchisees’ commitment to stay within the franchise system, and how trust moderates these relationships.

Hypotheses of the Study

H₀₁: Organizational climate does not significantly affect the intention of franchisees to remain in the franchise system, controlling for the level of trust.

H₀₂: Franchise support does not significantly affect franchisees' intention to remain in the franchise system, controlling for the level of trust.

Methodology

Research Design

This study employed a quantitative correlational research design to examine the relationship between organizational climate, franchisor support, and the intention to remain in the franchise system, with trust as a moderating variable. A descriptive approach was also used to analyze the demographic profile of the participants.

Participants and Sampling

The participants of this study were 81 individual owners of food franchisees operating in the City of San Fernando, Pampanga. Inclusion criteria required that participants (1) were at least 18 years old, (2) had been operating a registered food franchise for at least five years, and (3) were members of the Philippine Franchise Association. A purposive sampling technique was used due to the specific nature of the target population. The sampling frame was obtained from the City’s Business Registration Office, listing 317 registered low-cost food franchises. The final sample represented approximately 25% of this population. The sample size was determined using G*Power, a statistical software used to calculate the minimum required sample size based on specified parameters such as effect size, significance level, and statistical power, targeting an effect size of 0.15, a significance level of α = 0.05, and a power of 0.80.

Instrumentation

Data were collected using a modified version of the instrument developed by Grace. (2016) to assess trust and franchisor-franchisee relationships. The survey questionnaire covered variables such as organizational climate (initiating structure, leadership, autonomy, reward orientation), franchisor support, trust, and intention to remain. Items were rated using a 4-point forced Likert scale ranging from 1 (Very High) to 4 (Very Low). The instrument underwent content validation by three experts, including franchise owners and business faculty, and a Content Validity Ratio (CVR) was computed to ensure construct representation.

Data Collection Procedure

After securing approval from local authorities, the researcher personally administered the questionnaires to the franchisees. Participants were briefed on the study’s purpose, and confidentiality was assured. All completed questionnaires were reviewed to ensure completeness before data analysis.

Data Analysis

Both descriptive and inferential statistics were used. Demographic data were analyzed using means and standard deviations. The relationships among variables were tested using Multivariate Regression Analysis, while Moderation Analysis was conducted to determine the moderating role of trust. The analyses were performed using IBM SPSS Statistics Version 26.

Results and Discussion

I. Level of Organizational Climate of a Business Franchise

Table 1 reveals descriptive measures of several factors that contribute to organizational climate. For instance, the mean rating for helping group members remain informed about expectations was reported as 3.54 (with a standard deviation of 0.55), indicating a "very high" perception of this behavior among franchisees. Similarly, the significance of clarifying roles and initiating actions achieved a mean of 3.44, denoting a "high" level of importance attributed by franchisees. The articulation of task-oriented behaviors, measured at a mean of 3.32 (standard deviation = 0.50), also falls within the "high" interpretation category. Collectively, these scores reflect a favorable view of the organizational climate among franchise participants.

Such high levels of clarity and support are indicative of franchisees' security in their role, which can nurture trust in the franchise system. Trust is an important component of franchise relationships, allowing for the free flow of knowledge and alignment of objectives. Croonen & Broekhuizen (2017) and Herz et al. (2016) emphasized the importance of trust in human relationships and open channels of communication as the key enhancers of relational governance in franchise systems, thereby enhancing performance and cooperation among franchisees.

These findings have profound practical implications for franchisors and franchisees in the Philippines and other developing economies. The high ratings of these elements of organizational climate indicate that a focal point for franchisors should be the development of environments that espouse clear communication and support. Such an endeavor can then translate to better franchisee retention, thereby creating better feelings of worth and commitment. Retention alone does not cover the full picture; establish such relevance in developing economies, whereby limited resources and experiences call for a supportive organizational climate to allow franchisees to better cope with hurdles and promote sustainability and growth within the franchise system (Watson et al., 2017; Rocha et al., 2023).

It further puts forth trust as the vehicle for collaboration, which opens the options for tailored support programs that would not only guide on operational things but also create emotional bonds among the franchise participants. Therefore, the findings call for agreement on franchising strategies, with the implication that franchisors would need to invest heavily in training and support mechanisms to create and sustain these positive dynamics with their franchisees.

The salient findings of the present study underscored the role of an engaging organizational climate, which is built upon trust, as enhancing franchisee retention; practical implications suggest that such an environment should therefore be cultivated by those franchisors who want to achieve a competitive advantage across the fast-changing frontiers of franchising, especially in areas afflicted by socioeconomic maladies.

The descriptive measures for three indicators of leadership behavior that contribute to building an environment of trust and collaboration are given in Table 2. The mean scores of these indicators illustrate a positive climate: the ability to help franchisees develop mutual trust and foster two-way communication received a high mean of 3.54 (standard deviation = 0.53), indicating a "very high" perception among franchisees. Caring for every employee and personalizing what each employee can uptake have means of 3.41 (standard deviation = 0.57) and 3.40 (standard deviation = 0.49) respectively in the measurement instruments classified as high. Altogether, a general average of 3.45 with a standard deviation of 0.36 suggests an environment conducive to positive interpersonal relations and a collaborative spirit in franchising.

Interpreting these findings within broader theoretical frameworks, such as organizational climate, franchise support, and trust, underscores their significance in enhancing franchisee retention. A "very high" level of perceived mutual trust, as indicated by a mean score of 3.54, is crucial for fostering a collaborative atmosphere where franchisees feel secure and valued. Such an environment is conducive to sharing ideas, aligning with prior scholarship that asserts trust nurtures high-quality franchisor-franchisee relationships and contributes to operational success (Eser, 2012; Kamar & Alsetoohy, 2021). The perceived commitment to respect subordinates' ideas signals a willingness to engage in meaningful dialogue, reflected in the high scores for considerate leadership practices. This trust forms a critical foundation for further engagement and alignment of goals among franchisees, thereby reinforcing their intention to remain in the franchise system.

Basically, these results can make a huge difference for both franchisors and franchisees, especially in developing countries like the Philippines, where the franchising phenomenon continues to grow at a fast pace. According to findings, it will further induce the franchisors in developing leadership styles that are premised on mutual respect, support, and open channels of communication that will promote satisfaction and commitment from franchisees. The aspect on leadership behaviors that would engender trust in franchisees would also lead to high cooperation and lower turnovers of franchisees. For the context, it becomes important where cultures vary, and the proof of trust could be a most important factor of operational performance and relational longevity within franchise networks. The finding of this study also indicates that franchisors providing training and development programs to their managerial staff to foster their leadership abilities can promote a more committed franchisee community that defies market fluctuations.

These findings could be easily translated into the fact that leadership consideratoverall health and viability of franchise systems. As franchisors and franchisees navigate the complexities of their relationships, fostering a high-trust organizational climate appears as a strategic priority that can lead to enhanced performance outcomes and greater franchise stability in the competitive landscape.

The descriptive statistics reported in Table 3 indicate that indicators associated with autonomy received high ratings among franchisees, suggesting a generally favorable view of their operational independence. Notably, the first indicator, which emphasizes franchisee control over their functions, received a mean score of 3.31 (std. dev. = 0.52), suggesting that franchisees perceive significant value in their capacity for independent thought and action. Additionally, indicators relating to the sense of attachment to the network and the recognition of franchising initiatives in managing local competition also scored a mean of 3.31 (std. dev. = 0.58). The last indicator, which emphasizes the relational and psychological contracts between franchisors and franchisees, yielded a mean score of 3.26 (standard deviation = 0.52). The findings generally indicate that franchisees perceive their degree of autonomy positively and the franchise system's supportive structures.

On a cursory view, these results indicate autonomy as a very important factor towards the overall satisfaction of franchisees and their intention to stay in the franchise system. The high marks most probably imply that the franchisees much appreciate being free to make their own decisions on issues but also recognize the necessity of being associated with the franchise network that they are affiliated with so as to obtain the sentiments expressed, consistent with theories that say autonomy can also be the means by which trust and satisfaction can be enhanced. Those two elements are needed to facilitate the establishment of productive franchise relationships and are essential to the relational contracts that underpin franchise dynamics. These contracts often shape psychological commitments created through interpersonal relations rather than formal agreements, which play a crucial role in stabilizing relationships and fostering franchisee loyalty and retention (Kamar & Alsetoohy, 2021; Altınay & Brookes, 2012).

The findings from these studies have diverse implications for both franchisors and franchisees in developing economies like the Philippines. Practically, collaborative autonomy should be emphasized by franchisors within their franchise models for this reason. Franchisors would be able to cultivate a spirit of investment and ownership with the individual participants of their system once they recognize and empower their partners to control what they do. This is critical in the Philippines, where entrepreneurs flourish because of strong, possible motivational structures encouraging self-actualization within a system (Aliouche et al., 2012; Lee & Lee, 2020). The granting of autonomy would also ultimately result in increasing both satisfaction and loyalty among the franchisees who would need them most as they are instrumental in maneuvering through market uncertainties, which developing economies undergo.

Moreover, the relational contracts links with overall satisfaction indicate that investment in creating a real community and system among franchisees can further strengthen their attachment within the network. The implications thus call for a rethinking on how franchise systems are designed, creating environments in which autonomy is not merely allowed but actively encouraged through training, resources, and a culture of recognition. Such strategies could concretely build competitiveness and resilience within franchise operations while empowering local entrepreneurs to realize their dreams through long-term success.

Analyzing autonomy in franchise systems, we can see how it becomes an essential part in the understanding of franchisee behavior and intention to remain. Strong correlations between perceived autonomy, trust, and satisfaction of franchisees indicate that the leadership practices employed by the franchisor must include elements of independence and relationships building within their networks. It is this way that all franchisees benefit and the entire franchise system within developing economies will also become healthier and more sustainable.

Table 4 shows that various elements related to reward orientation received high ratings from franchisees, signifying a strong perception of value associated with these elements. Specifically, the statement about favorable location achieved a mean score of 3.48 (standard deviation = 0.61), reflecting a "high" interpretation. Similarly, perceptions surrounding franchise incentive programs, designed to attract prospective franchise owners, garnered a mean score of 3.36 (standard deviation = 0.55). Lastly, the sentiment that existing locations show steady sales growth was rated with a mean of 3.32 (standard deviation = 0.61). The general average of 3.39 (standard deviation = 0.46) reaffirms a consistently high perception of the reward-oriented dimensions within the franchise climate.

Interpreting these findings suggests that reward orientation plays a significant role in shaping franchisees' attitudes and behaviors, influencing their intention to remain in the franchise system. The high mean scores reflect general satisfaction with the rewards and recognition processes in place. The favorable location is crucial as it enhances operational effectiveness, directly affecting sales growth and overall business success, which are vital for franchisee satisfaction (Monroy et al., 2018; Koo & Lee, 2024). Additionally, the utility of franchise incentive programs emphasizes the importance of motivating both current and future franchisees, reinforcing the conclusion that proper incentives will always provide visibility to enhance engagement and loyalty within the franchise network (Koo & Lee, 2024; Croonen & Brand, 2013).The findings, in general, indicate the presence of an organizational climate that rewards and motivates trust in long-term relationships in the management of the franchise system.

The implications for the franchisor and franchisees are significant from a practical point of view, especially in developing economies like the Philippines. Franchisors can use these findings to design and implement effective reward structures that enhance franchisee satisfaction and retention. Franchisees are assumed to attach some value to good location choices and effective incentives affecting key strategic decisions on site choice and design of reward systems meeting franchisee expectations (Koo & Lee, 2024; Watson et al., 2017). A supportive environment promoting steady sales growth will give franchisees the necessary reassurance toward commitment to the franchise system. The Philippine market is a tangible example of local dynamics posing unique challenges and openings for franchising ventures (Watson et al., 2017).

The importance of reward orientation proposed for trust development encourages franchisors to proactively communicate the benefits of their reward programs to franchisees. This would include various communication strategies that develop recipients' perceptions of how these rewards lead to enhanced support or operational success for the franchisees. The initiation of collaborative communication and trust-building programs constitutes a critical gambit toward solidifying the franchisee-franchisor relationship and ensuring continuous commitment to the franchise system (Monroy et al., 2018; Koo & Lee, 2024; Wright & Grace, 2011). Therefore, the findings of this research support a holistic logic whereby addressing the reward orientation is included in the strategic design of franchise management, potential itself to enhance relational quality among franchise actors.

II. Degree of Support of Business Franchisors to their Franchisees

Table 5 reveals that franchisees hold a high perception of their franchisor's support, with average scores showing robust satisfaction across multiple dimensions. Specifically, the statement "I enjoy working with the franchisor" received a mean score of 3.35 (standard deviation = 0.55), while the statement "My franchisor is quick to recognize good performance" yielded a mean of 3.33 (standard deviation = 0.61). Other related indicators, such as the existence of a mutually beneficial relationship (mean = 3.32, standard deviation = 0.57) and alignment of values (mean = 3.30, standard deviation = 0.53), were similarly rated as high. The lowest mean score of 3.25 (standard deviation = 0.56) pertains to the sense of being “in it together” with the franchisor. Overall, the general average stands at 3.31 (standard deviation = 0.41), supporting a positive interpretation of the franchisee-franchisor relationships as characterized by meaningful support and mutual engagement.

These findings show not only a high degree of satisfaction among franchisees but also a solid foundation of trust and collaboration within the franchise system. Such encouraging sentiments support the idea of franchisees feeling valued and appreciated; very important in building loyalty and curbing turnover intentions (Monroy et al., 2018; López-Fernández & López‐Bayón, 2017). High magnitude means values represent an effective channel of communication, plus acknowledgement of performance, both essential towards the enforcement of commitment for franchisees. In the works of Perrigot et al. (2016) and Chiou & Dröge (2013) mentioned earlier, effective support by franchisors enhances the engagement of franchisees and operational performance, hence solidifying the sustainability of the partnership. The mutuality and alignment of values signal towards the kind of partnership where both parties embed common goals, which is all too central to enhancing the intent to stay with the franchise system (Diaz-Bernardo, 2013).

In terms of practical and theoretical implications, the insights from these findings are particularly useful for franchisors and franchisees, especially in developing economies like the Philippines. For fostering a supportive climate where recognizing and engaging positively with franchisees become priority concerns, franchisors may see higher levels of franchisee satisfaction and retention. An articulated support system offering timely recognition of achievements and confirmation of being in a collaborative enterprise positively impacts franchisee commitment levels and dissipates potential conflicts (Domínguez-Falcón et al., 2021). In the ever-changing scenario of the Philippines, where the markets are highly competitive and affluent with entrepreneurism, making sure franchisees feel support may just as well become the key differentiating factor distinguishing triumphant franchise operations from the ones that falter.

Moreover, on account of the cultural peculiarities that inform the business relationships in the Philippines, the alignment of values of franchisee and franchisor becomes significant. When the franchisees view a strong degree of compatibility with the franchisor's corporate philosophy and practices, they are usually inclined towards displaying proactive behaviors conducive to fostering loyalty and operational assurance, benefiting both the franchisee and franchisor (Liu et al., 2014). Therefore, focusing on building relationships through effective communication and support mechanisms may turn out to be a competitive advantage in fostering thriving franchise networks in such contexts.

From the findings, the level of support provided by franchisors to franchisees emphasizes that trust and recognition are key to developing positive stakeholder relationships. High indices of satisfaction and perceived support indicate a favorable organizational climate that would engender those franchisees' commitment to their franchise endeavors. Franchisors are encouraged to continue developing frameworks that reinforce such relationships, thereby promoting a sustainable and prosperous franchise environment that benefits all participants within the system.

III. Level of Trust of the Franchisees in Their Business Franchisor

The data illustrated in Table 6 offers critical insights into the trust franchisees have in their franchisors. The statistical findings reveal that all indicators received high mean ratings, reflecting a positive perception of trust within the franchise system. Specifically, the mean score for the statement about effective communication practices and interaction with employees and franchisees stands at 3.47 (standard deviation = 0.53), which is the highest among the indicators. Other crucial variables involved are the congruence of actions with organizational values (3.41, std. deviation = 0.52) and the level of franchisee involvement in their business (3.36, std. deviation = 0.51), yielding high data scores too. Likewise, the perceptions of franchisees toward the performance and leadership skills of the franchisor average 3.30 points and the total average in all items is 3.33 (std. deviation = 0.37), showing high total trust.

The results highlight trust as a central factor in enabling a good organizational climate where franchisees would engage and retain. The high level of trust particularly in effective communication and value consistency means that franchisees will more often be secure in their franchisor's leadership. This is in line with the past literature that proves trust builds strong relationships between franchisors and franchisees, thus encouraging cooperation as well as enhanced satisfaction and performance (McDonnell et al., 2011; Eser, 2012). Furthermore, trust-building from effective communication engenders much stronger commitments from franchisees, quite critical for being settled in the franchise system (Wright & Grace, 2011; Monroy et al., 2018). These practices of good communication are the operating framework along which transactional friction can be minimized to yield long-term relational satisfaction (Prihandono et al., 2021; Rusman et al., 2020).

From a practical point of view, the findings come with implications for both franchisors and franchisees in developing economies such as the Philippines. For instance, trust-based culture among franchisors would make them likely to offer enhanced brand loyalty and commitment from franchisees in the system. This effort should endeavor to develop proactive strategies for engaging franchisees, say reward franchisee performance and align with their values, a focus for those franchisors willing to improve on their franchisee satisfaction and retention (McDonnell et al., 2011; Koo & Lee, 2024). This is particularly germane in the Philippines where personal relationships and trust thrive in local business, making it imperative for franchisors to ensure the authenticity of these connections (Baştuğ et al., 2016; Syahidah & Asikin, 2023).

In addition, a high-trust environment will foster better operational performance for happy franchisees work with and contribute positively to a franchise network (Koo & Lee, 2024; Rusman et al., 2020). This type of cooperation is especially important under dynamic market conditions that invariably pressurize franchisees with intense competition. By constantly proving competence and valuing franchisee inputs, franchisors fortify the bonds vital to the health of the system (Croonen et al., 2024; Grace et al., 2016).

In this regard, high trust levels in the present work show a healthy and engaged franchise environment, which is one of the building blocks in achieving franchisee satisfaction. Insights gleaned from this perspective can stress how much trust is a strategic franchise asset justifying that franchisors who leverage strong communication and organizational value alignment with those of their franchise will experience greater satisfaction, performance, and retention in relationships. These elements are pivotal for long-term sustainability in the franchise sector, underscoring the importance of trust within the broader context of franchising in developing economies.

IV. Intention of the Franchisees to Remain Working in the Franchise System

The data presented in Table 7 clarifies key indicators concerning franchisees' intentions to remain within their franchise systems. The findings reflect a positive level of confidence and satisfaction among franchisees, with mean scores steadily illustrating this sentiment across various dimensions. The highest mean score shows franchisees' confidence in the organization’s ability to introduce future strategic initiatives. This is closely followed by favorable perceptions of location and expectations about sales growth at their locations.

The overall mean score for intention to remain is reported at a positive level, which shows the optimism franchisees have with regard to their future within the franchise system. These findings help in delineating highly significant correlations between franchisee sentiments and their intention to stay involved in the franchise network. The results indicate that franchisees perceive their franchisor partners to be capable, and they feel a strong tie with the goals of the organization, which adds to the emotional and economic investments in the franchise system.

Such beliefs about the strategic direction of the organization can be critical for business survival and stability, demonstrating theories as to the effect of perceived fairness and reliability on loyalty and commitment. A good location and faith in growth strategies will further strengthen the commitment of franchisees towards the organization, assuring their intention to carry on relationship with the franchise (Torres et al., 2020; Mallapragada & Srinivasan, 2016).

The study results emphasize most of the franchisors and franchisees on issues concerning overarching insights on the developing economies like that of the Philippines. It helps franchisors derive results from the contribution of ensuring specific strategic initiatives on franchisee confidence such as long-term support for location development as well as highly designed marketing strategies. Recognition of franchisees' contributions enhances the emotional ties they have to the same brand. In emerging economies, where socio-economic conditions often significantly influence franchisee loyalty, trust is fostered with open communication and constant support-interventions in both directions (Melo et al., 2018; Croonen & Brand, 2013). This claim also supports previous studies which accentuate that it is the way franchisee associates view sharing value from their franchisor that gives strong and profound influence over their satisfaction and retention (Croonen et al., 2024; Mignonac et al., 2015).

Further, these benefits also argue for the continuing investment in training and market enhancement as they strengthen the confidence of franchisees in the future trajectory of the organization. Therefore, provision of recurring advertising and product innovation to the backing of franchisees can ensure loyalty and has the highest propensity in driving overall franchise performance. It is essential to ensure support and conversion in this regard, especially when moving fast in a competitive market (Hu et al., 2025; Croonen & Broekhuizen, 2017).

Very high levels of intention to stay among the franchisees also indicate high expectations for a light at the end of the tunnel within the franchising system. Therefore, by understanding and selling the conditions that go into such optimism, franchisors can work in proliferation of loyalty and operational stability onto their networks. Insightful for reporting franchisors in how to refine their engagement strategies, particularly in developing economies where such dynamics would loom large in heightening growth, this study provided very invaluable results.

V. Effect of Organizational Climate on the Intention of Franchisees to Remain in the Business Franchise

The regression estimation proposed in Table 8 is clear: organizational climate levels have a significant bearing on franchisees' intention of remaining in the franchise system. A B coefficient of 0.714 would indicate that as organizational climate increases by one unit, the intention of the franchisees to stay increases by 0.714 units. The standard error of this estimate is 0.097, indicating that the estimate is precise with a t-statistic of 7.337 and a p-value of 0.000. Such far-reaching statistical significance allows for the firm rejection of the argument that this relation is due to random chance and, thus, gives the organization climate a major status as a predictor of retention among franchisees.

Additionally, since the R² value is noted to be at 0.405, it means that about 40.5% of the variance of the intention to remain can be explained by the organizational climate variables. This is a strong estimate, indicating that other variables may also affect franchisee retention. The F-statistic 53.835 also supported the claim by indicating the overall significance of the regression model at a significance level of the same 0.000.

When interpreted within a franchise system context, these results signify the immense importance of a positive organizational climate for retaining franchisees. The strong relationship demonstrates that when franchisees perceive a sufficiently supportive organizational climate—characterized by good communication, mutual respect, and commitment to common goals—they will be much more likely to commit themselves to the franchise arrangement (Herz et al., 2016; Kamar & Alsetoohy, 2021). Based on these relational dynamics, trust, in turn, is dependent on the level of engagement franchisees are prepared to invest in their franchisor, thus affecting their behavioral intentions. This connection is supported by Mumdžiev and Windsperger (2013) & Monroy et al. (2018), who illustrated that enhancements in the organizational climate create a favorable environment for trust development, leading to successively greater franchisee satisfaction and retention.

For franchisors and franchisees, especially in the context of SMEs in developing economies such as the Philippines, the findings contain crucial implications. Firstly, franchisors have to focus on generating and maintaining a supportive organizational climate for enhanced franchisee loyalty and commitment. Franchisors may consider establishing an open communication channel with franchisees, recognizing good franchisee performance, and aligning corporate objectives with the business objectives of franchisees. This is particularly the case in the Philippines, where informal and personal relationships and trust are vital to the success of any business (Wright & Grace, 2011; Lee & Lee, 2020). Creating a fun and collaborative working relationship will greatly alleviate conflict and opportunistic behavior as it fosters trust and commitment, a steady foundation for sustainable franchisee operations (Jönsson & Foss, 2011; Hust et al., 2015).

Capacity development in training and development courses help franchisees to gain confidence, thus bolstering their connection with organizational culture, enhancing operational performance, and actual franchisee satisfaction (Prihandono et al., 2021). Given that these SMEs face unique challenges, which differ from those faced by larger companies, promoting a robust organizational climate that resonates with the vision of franchisees is critical to sustainable success and resiliency in the midst of stiff competition (Altınay & Brookes, 2012).

The regression analysis delineates a strong impact that organizational climate has on the franchisees' intention to remain engaged in the franchise system. This suggests that through the promotion of a positive organizational climate that is characterized by trust and collaboration, a franchisor enhances all aspects of franchisee loyalty, performance, and sustainability of the franchise system ever-so-threadingly in developing contexts that rely on these relationships for growth and success.

Regression analysis explored in Table 9 establishes that franchisor support significantly relates to franchisee intentions to remain in the franchise. The unstandardized coefficient (B) is computed as 0.542, indicating that every unit increase in franchisor support results in a 0.542 increase in franchisees' intention to remain. The standard error of 0.076 lends precision to this estimate, complimented by a t-value of 7.141 and a p-value of 0.000, thereby establishing the statistical significance of the finding. Based on an R² value of 0.392, it can be said that approximately 39.2% of the variation in the intention to remain of the franchisees is explained by franchisor support, indicating moderate to considerable predictability of the model. F-statistics of 50.999 and a significance level of 0.000 further strengthen the regression model.

The interpretation of these results shows that franchisor support is crucial in affecting franchisees' intention to remain in the franchise. The positive coefficient suggests that as the support offered by the franchisor increases, the intention of the franchisee to commit to the franchise relationship also increases. This is in line with the findings by Syahidah & Asikin (2023), who argued that purposeful support provided by franchisors, including good communication, training, and resource availability, creates confidence and involvement among franchisees. The more franchisees believe that they are given proper support by their franchisors, the more they trust the franchisor, thereby strengthening their intention to stay in the franchise system (Melo et al., 2021; Syahidah & Asikin, 2023). On the other hand, a franchisee that feels support by the franchisor is lacking may feel isolated from the franchisor, and consequently, will be lesser motivated to continue to associate with such a franchisor. Similar studies have found a link between perceived support and franchisee satisfaction and retention (Rickard & Conaway, 2022; Syahidah & Asikin, 2023).

The recommendation that follows from the findings above may be particularly relevant to franchisors and franchisees in the Philippine context, characterized by a relatively young franchise industry underlying an SME-driven economy. Given the cultural dynamics regarding relationships in the Philippines, where trust and personal relationships assume center stage, these findings compel franchisors to provide support mechanisms based on the needs of their franchisees. Franchisors must develop elaborate programs not only on initial training but constant widespread support throughout the relationship, including ongoing performance feedback, marketing support, and initiatives to promote franchisee participation in their decisions. The result indicates further that enhancing support structures environmentally would benefit franchisee retention; hence, forging further improvement in system performance through the resulting loyalty and commitment to the system.

Moreover, the relationship between franchisor support and intention of franchisee to remain presents an opportunity for franchisors to differentiate themselves in an intensely competitive market. By emphasizing relationship-based support distinctively attuned to the particular needs of franchisees, franchisors in the Philippines may be able to put the twin attributes of trust and commitment, into use for the betterment of performance (Sveum & Sykuta, 2018). As the franchise landscape continues to evolve, especially under economic challenges, development of a supportive organizational climate will become vital for long-term sustenance of growth toward a sound franchise ecosystem for all stakeholders.

Regression analysis suggests very neatly that franchisor support is of strategic concern for influencing franchisee intentions to remain. When this support is accentuated by the franchisors, not only will loyalty thus be secured, more importantly, a strong franchise network will be developed in the Philippine context and similar developing economies.

It contains important interpretations, as presented by regression analysis carried out in Table 10. It showed the relationship between franchisee trust and intention to remain within the franchise. The unstandardized coefficient (B) is recorded at 0.704, meaning, on average, an increase of 0.704 units in the intention to remain for each increase on a single unit of trust. Beta or standardized coefficient at 0.737 shows high positive correlation and is strengthened with an F-statistic of 93.890, defining a significance level at 0.000. This tests whether this is truly significant at the alpha level. The R² has a value of 0.543, meaning that, in general, the trust of the franchisors explains about 54.3 percent of the variation of the intention to remain in the franchises.

The findings signify the value of trust within franchise systems, implying that as franchisees build up trust in their franchisors, intention to be active in such franchise structure increases. This is consistent from the findings of Monroy et al. (2018) and Grünhagen & Sadeh (2021), who indicated that trust is the very foundation of franchise relationships, affecting the satisfaction and commitment of the franchisee to the system. Trust should exist between franchisors and franchisees to create a communication and collaborative atmosphere; franchisees perceive their franchisors as trustworthy, wherein they are even more likely to become actively involved and make investments in their business' operations, which may eventually strengthen their long-term commitment (Croonen & Brand, 2013).

In practice, these findings give good consequences to franchisors and franchisees, especially the ones set within the SMEs of the Philippines or similar tenebrous economies. Investment in a trust conducive environment, characterized by a transparent and continuing support and engagement strategies, is necessary to attract superior loyalty from franchisees. Trust may prove decisive in success in this cultural context of the Philippines, where relationships tend to carry considerable trust and high levels of interpersonal engagement (Kashyap & Murtha, 2017). Training programs to promote and foster positive interactions might also benefit franchisors in further instilling within the franchisees confidence regarding the franchisor’s competence and commitment toward shared aims.

Moreover, franchisees being trusted by their franchisor may show more endurance and initiative while faced with obstacles in the market. Such relevance is significant within the Philippine context, with SMEs frequently experiencing strong economic volatility converged with high competition pressuring market forces (Panda et al., 2022). Establishing trust between franchisors and franchisees would further improve franchisee satisfaction and overall system profitability, as satisfied franchisees are less likely to behave opportunistically and are more likely to contribute positively to the brand reputation and operational performance (Sharma et al., 2021).

Trust is, therefore, the main factor in deciding whether a franchisee's intention to remain in the franchise business or not. By concentrating more on trust-enhancing devices, franchisors can create a strong franchise environment where both parties can benefit from it, increasing loyalty and operational stability, which are very necessary for emerging markets. These outcomes provide the business case for continued investment in relationship management practices to ensure the sustainability of the franchise outcome.

The outcomes of moderation regression analysis shown in Table 11 narrow down the possible interpretations for the interactions by addressing how trust interacts with the organizational climate and franchisees' intention toward staying with the organization. The analysis reveals that the unstandardized coefficient for organizational climate is 0.446, with a standard error of 0.086, yielding a t-value of 5.195 and a p-value of 0.000, indicative of statistical significance. Similarly, trust also proves a significant relationship, with an unstandardized coefficient of 0.553, a standard error of 0.072, a t-value of 7.662, and a p-value of 0.000. Notably, the interaction term (Organizational Climate × Trust) yields an unstandardized coefficient of -0.585, a standard error of 0.202, resulting in a t-value of -2.888 and a p-value of 0.005, indicating that the interaction effect is indeed significant. The model summary reports an R² of 0.674, indicating that approximately 67.4% of the variance in intention to remain can be explained by this model, thereby reinforcing the robustness of the findings. Importantly, the unconditional interaction shows an R² change of 0.035 and an F-statistic of 8.342 with p = 0.005, further confirming that trust moderates the relationship between organizational climate and franchisee intention to remain.

Interpreting these results suggests that while both organizational climate and trust positively affect franchisees' intention to remain in the business, trust serves as a moderating variable that enhances the nature of this relationship. The magnitude of interaction term's negative coefficient implies that as trust increases, the positive impact of organizational climate on stay intention is getting weaker. In other words, when trust is already high, the improvement in organizational climate becomes almost negligible to the franchisee's intention to stay. It is likely that franchisees with high trust feel less affected by an improvement in organizational climate regarding their intention to stay, as their commitment has already been secured through the relational dynamics validated by trust (Monroy et al., 2018; Mináriková et al., 2019). This perspective corroborates theories established about trust playing an important role in the building of relationships within franchise systems, where high levels of trust diminish negotiation barriers and enhance a sense of belonging (Toshmirzaev et al., 2022; Croonen & Broekhuizen, 2017).

The findings have important implications for franchisors, franchisees, and other stakeholders in SMEs in the Philippine context or contexts similar to emerging economies. These study results substantiate the fact that in addition to cultivating a positive organizational climate, franchisors should invest their efforts toward building trust. Through proper communication, support, and acknowledgment of franchisee efforts, franchisors can create an aura of trust that stabilizes their relationship with franchisees, thus decreasing turnover rates as well as increasing overall system performance (Monroy et al., 2018; Croonen et al., 2024)-a particularly relevant proposition in the business setup of the Philippines, where personal relationships and cultural values have a strong bearing on business dynamics (Mignonac et al., 2015; Croonen, 2010). Franchisors targeting to solidify trust and sustain long-term retention would thus do well to employ relationship management practices centered on transparency and genuine engagement with franchisees, knowing that trust acts as a moderator of organizational climate.

These findings should also spur franchisees to maintain and develop trust within their franchise systems. Engaging with franchisors in a manner that is not only active but also collaborative can strengthen commitment on both sides and thus aid the franchise relationship's overall sustainability. As emerging markets are coming into the limelight amid fierce competitiveness and uncertainties, such franchise systems will need to map out trust as a priority that complements a positive organizational climate for them to flourish and adapt (Winsor et al., 2012; Croonen & Broekhuizen, 2017). The dynamic interrelation of trust and organizational climate is a subtle one and has a significant effect on the franchisee's engagement with the whole franchise venture and its long-term success in the competitive landscape of franchising. 

VI. Role of Franchisees’ Trust in the Relationship between Franchisors’ Support and Franchisees’ Intention to Remain in the Franchising Business

The moderation regression analysis results, shown in Table 12, provide a comprehensive understanding of how trust moderates the relationship between franchisor support and franchisees’ intention to remain in the franchise system. The intercept of the regression equation is noted as 3.385, with a standard error of 0.032, resulting in a t-value of 105.692 and a highly significant p-value of 0.000, indicating robust confidence in the model’s constant term. Franchisor support appears with a coefficient of 0.213 and a standard error of 0.086, which is statistically significant (t = 2.471, p = 0.016), suggesting that increased support reflects a positive influence on franchisees’ intention to remain. Trust has an even more powerful effect, with a coefficient of 0.556, t-value of 5.800, and a p-value of 0.000, proving its significant role in enhancing retention intentions among franchisees. However, the interaction term (Support × Trust) shows a negative coefficient of -0.097 with a standard error of 0.188, resulting in a t-value of -0.516 and a p-value of 0.607, indicating that the interaction effect does not significantly moderate the relationship between support and intention to remain, as the high p-value suggests a lack of statistical relevance.

The interpretation of these results shows that while both franchisor support and trust individually contribute significantly to franchisee retention, trust does not significantly enhance or weaken the relationship between support and intention to remain. Instead, trust provides an independent pathway through which franchisors can positively influence franchisee commitment. This finding implies that franchisees who feel a high level of trust toward their franchisor are likely to feel secure and enrolled more with the intention to stay in the system, irrespective of their level of support perceived from their franchisors (Mignonac et al., 2015; Bordonaba‐Juste & Polo‐Redondo, 2008). As such, this mechanism reflects social exchange theory, which states that the perception of trust creates heightened commitment to relationships, which in turn generates a sense of belonging and loyalty vis-à-vis the franchisees (Herz et al., 2016; Dickey et al., 2007).

The ramifications are tremendous for franchise systems, especially in the context of the SMEs operating in the Philippines and similar emerging markets. Hence franchisors must appreciate that the development of trust will be a cardinal attribute of the franchise relationship. However, providing adequate support is important; the results indicate that working towards building trust through open communication, acknowledgment of franchisees' contributions, and effective conflict resolution could pay off regarding franchisee retention (Varotto & Parente, 2016; Melo et al., 2021). In the Philippines, where personal relationships and trust are deeply grafted in business practices, franchisors should rather espouse trust-building strategies in line with local cultural value. Strong, trust-based relationships will assist franchisors through the distinctive challenges posed by emerging markets, enhancing the long-term viability of the franchise system.

Moreover, such outcomes indicate that it would be prudent for franchisees to participate in trust-building efforts as they negotiate relationships with franchisors. In a support and trust environment, franchisees can influence retention outcomes positively. The intertwining of support and trust creates a synergistic approach benefiting all stakeholders, contributing to the resilience and strength of the franchise systems in competitive, evolving markets (Weaven & Frazer, 2006). Understanding the interplay between trust and support opens critical considerations in enhancing franchise relations and highlights their roles in making franchisee commitment secure and in ensuring the success of franchise strategies.

Conclusion and Recommendation

This study illustrates the tremendous impact that the organizational climate and franchise support have on franchisees' decision to stay in the franchise system. Franchisees were highly committed to the relationship, especially when they regarded the internal climate to be good with regard to clear structure, various support mechanisms from leadership, autonomy, and rewards. The external support system of financial aid, marketing assistance, and ongoing training also greatly influenced their retention in the franchise programs. Trust emerged as a significant moderating factor, strengthening the relationship between organizational and support variables and franchisee intent to stay. A high level of trust further strengthened the franchisees' belief in the long-term viability of the system and their emotional attachment to the business. Besides, it revealed that franchisees with a perception of steady growth in sales, strategic innovation, and a pleasant atmosphere were most likely to plan for staying in the franchise. This shows that both tangible and intangible factors play a fundamental role in retaining franchisee loyalty.

It is therefore recommended that franchise organizations continuously invest in nurturing a positive organizational climate which cashes in on employee autonomy, transparent communications, and employee recognition. Consistently tailored support for franchisees, especially in areas like marketing and training, will greatly assist franchisee satisfaction and operational efficiency. Furthermore, efforts to foster mutual trust between franchisors and franchisees should be institutionalized through open dialogue, shared goals, and ethical practices. Franchisors should also review their incentive schemes to ensure alignment with franchisee needs and maintain motivation. Future strategies should focus on enhancing trust-building mechanisms as a central feature of franchisee relations. Ongoing assessments of franchisee experiences should be implemented to adapt management practices in real time. Lastly, replication of this study in other regions and industries is recommended to validate the model and expand its applicability across the broader franchising landscape.

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