The Influence Of Franchisors Brand Image On Franchisee Trust And Its Impact On Franchisee Intention To Remain In Franchise System

Franchisee is the party that play important role in the franchising because most of franchise outlets managed and operated by franchisees. Nevertheless in the process of business operating there would be the conflict of interests between franchisor as the owner of brand with the franchisee as the buyer of franchisors brand to operating retail outlet.and bound with futures contract. Therefore franchisee trust is needed in order to maintain franchisee intention to remain in franchise system. One of the most important elements in franchising is franchisors brand image because basically franchise is selling the brand. Therefore this study aims to examine franchisee intention to remain in franchise system through franchisee trust that influenced by franchisors brand image. This study is conducted in Aceh province Indonesia. Using causality-explanatory approach with primary data in the form of perception opinions and attitude of 134 franchisees as individual research object. The method of data collection is survey using questionnaire. Regarding time dimension is one shot study. Partial Least Square is used to analyze the data. The result shows that franchisors brand image have a positive significant influence greater through franchisee trust than a direct influence of franchisors brand image to franchisee intention to remain in franchise system.