Abstract

Transactional and relational quality have become a focal point of relationship between franchisor and franchisee. The relationship between the franchisor-franchisee relationships is dynamic and most of studies from franchisor perspective and the franchisee perspective have received little attention in the academic franchising. In fact, if seen from the success of a franchise system, not in spite of the success of franchisees. Franchisee plays an important role, because the franchisee that run the business day-to-day and also have direct access to the consumer, so the success of franchisees is the beginning of success of the entire franchise system. This research conducted on educational franchise industry in Indonesia from franchisees perspective. The result from this research prove the importance of the transactional and relational quality in the franchise industry.

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