Organizational Climate and Franchise Support on the Intention to Remain in the Franchise System: The Role of Trust

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