The franchise system has become more widely adopted by Korean distribution industries than before as foreign direct investment is liberalized in these industries. However, a number of problems has arisen between franchisers and franchisees recently. In this regard, the objective of this study is to identify problems arisen between franchisers and franchisees of convenience store operation. More specifically, this paper investigates how credibility between two parties is affected by the internal political structures, including bureaucratic structure and relational norms, and impact strategies of franchisers. The results of this study can be summarized as follows : Under rapidly changing channel environment, credibility between franchisers and franchisees tend to be characterized as the bureaucratic structure rather than relational norms. This result suggests that franchisees are more likely to recognize the power of franchisers in Korean convenience stores. This paper also shows that the adoption of coercive impact strategies decreases credibility and vice versa. The results of this paper suggest following implications. In order to have mutually beneficial relationship franchisers and franchisees have to share benefits and costs incurred by their convenience store operation, and to raise their ability to revise contract terms to accommodate changes in external environments. It is also important for the development of convenience store operation to construct more efficient relationship between franchisers and franchisees by adopting supportive norms rather than opportunistic ones.