An Investigation of Factors Affecting Franchise Purchase Intentions: The Franchisees Perspective

The role of franchising for business growth, job creation, and economic development has been widely recognized around the world. To our knowledge, however, no research has been conducted to investigate franchise practices in Iran. The purpose of this study was to investigate franchisor franchisee relationship and franchisees’ buying behavior using structural equation modeling, in Tehran Province. The findings supported that system quality and environment were influential factors for franchise purchase intentions. While, several franchising benefits were supported, unmet needs were evident with respect to franchisor support services and marketing as promised by franchisors. The results of this research provide a framework for improving relationship between the Iranian franchisors and franchisees in order to attain a more sustainable and cooperative partnership.