For entrepreneurs, franchising has various advantages over starting one's own store, including speedy product development, pre-packaged business format, and efficient marketing strategy; however, such arrangements also give rise to conflicts. The paper applies communication theory to explain franchisor-franchisee relationships and to determine how to enhance operation efficiency and reduce uncertainty. The study draws from Taiwan's convenience stores empirically, the density of which is the highest in the world. In total, 486 usable responses were analyzed to examine the nature of the collaborative communication, non-coercive communication, formality of communication, and two-directional communication, and also the loyalty behaviors occurring between franchisors and franchisees. Non-coercive communication, formality of communication, and two-directional communication were found to have a positive and significant effect on economic and social satisfaction, except on the relationship between non-coercive communication and economic satisfaction, and further enhance franchisee intention to renew contracts and continue franchise to advocate others. The study also identifies the relevance of franchisee profit, based on the division of the franchisees into two categories-high-profit franchisees and lowprofit franchisees and explores the different communication strategies used in the two groups. The results of the study urge franchisors to communicate with their franchisees more efficiently.