Despite the remarkable quantitative growth of the franchise industry in recent years, qualitative growth has not kept pace. Franchisee performance is essential for franchise success, and franchisors have implemented the supervisor system to facilitate smooth franchisee operations and performance. This study examines the effects of franchisor motivation on franchisee outcomes, including franchisee self-efficacy, affective organizational commitment toward the franchisor, and franchisee financial performance. In particular, the study also investigates the role of supervisors' coaching leadership in each of these relationships. A survey was conducted with 183 franchisees who had been directly operating their franchise outlets for at least six months, and hypotheses were tested through structural equation modeling analysis. The results showed that the franchisor's intrinsic motivation had a positive effect on franchisee self-efficacy and affective organizational commitment toward the franchisor, while extrinsic motivation had a positive effect on self-efficacy but did not significantly affect affective organizational commitment. Franchisee self-efficacy and affective organizational commitment toward the franchisor had positive effects on franchisee financial performance. Furthermore, supervisors' coaching leadership strengthened the effect of the franchisor's intrinsic motivation on affective organizational commitment and the effect of self-efficacy on financial performance, demonstrating greater influence when coaching leadership was exhibited.