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