This study examines the effect of brand-specific transformational leadership (BSTL) on employee-based brand equity (EBBE) with the mediating mechanism of empowerment. We explore the newly emerging concept of ‘employee based brand equity’ particularly from the perspective of brand-specific transformational leadership in the service industry. Furthermore, we explore the perspective of empowerment, structural and psychological empowerment, as the mediating mechanism between BSTL and EBBE. We highlight the direct and indirect effects of BSTL on EBBE and employs hierarchical linear modeling (HLM). 578 questionnaires were collected from multilevel data of subordinates and their supervisors at 58 well-known service brand units in Taiwan. Our research results implicate that: (1) BSTL is positively related to employee base brand equity; (2) Structure empowerment is a mediator factor of BSTL and employee base brand equity relationship; (3) Psychological empowerment is a mediator factor of BSTL and employee base brand equity relationship. This study presents three key contributions. This study provides the following research contributions: (a) In contrast to previous studies that focused on customer brand equity, we initiate the quantitative research of research on frontline employee based brand equity. (b) This study suggests and confirms that BSTL influences EBBE through the mediation of structure empowerment and psychological empowerment, which further contributes to EBBE research. (c) Finally, this study applies a hierarchical linear model to conduct a cross-level analysis of EBBE. Consequently, this study provide evidence supporting the previous assertion that comprehensive insight into service organizational behaviors can be achieved only by employing cross-level analysis and mediating factors.