Based on expectancy theory, this study examines the extent to which franchisees share innovative ideas within the franchise system as a function of their expectation that the ideas are adopted (success expectancy), and their belief that such effort benefits their own personal interests (valence) under different service industries. In addition, satisfaction is considered as an additional motivator that may promote the sharing of ideas. We argue how can the decision maker (franchisor) be aware and take advantage of unknown innovative ideas the franchisees may have.

This paper reviewed the relationship between perceived justice and service quality, and the moderating effect of gender in the franchise system of food service business. Based on the responses from 135 franchisees, the results of multiple regression analysis showed that distributive and procedural justice have positive relationships with almost service quality factors. The results of moderating analysis showed that male franchisees have more positive relationships with almost service quality factors than female franchisee while in distributive justice, and that female franchisees have more positive relationships with almost service quality factors than male franchisee while in procedural justice.

This study has been conducted by focusing franchisor’s leadership style, franchisee’s followership, group-efficacy and their trust in order to achieve positive integration of the franchise system. The key results of empirical examination on the moderating effect of group-efficacy and trust between leadership style proposed by Path-Goal Theory and followership has been found as follows. First, franchisors should be showed their leadership style to fit their mutual business situation. Second, Franchisors and franchisees will be found many ways to increase level of franchisee’s group-efficacy. Third, Franchisors will be obtained trust from their own franchisees. These efforts will be given high level of franchisees’ trust and group-efficacy. As a result, positive integration of the franchise system will both enhance their competitiveness.