• Journal of the Korea Academia-Industrial cooperation Society
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• v.11 no.9
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• pp.3210-3222
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• 2010

Franchise Industry has a big portion in national economy, and contributes to protecting self-employments and making jobs. One of good way to increase the success of franchise business is operating some franchisor's company owned outlets before franchising. The purpose of this research is to understand the effects of the company owned outlets on franchisor's current performance. According to the result, the operation term, scale, and location of company owned outlet increase the legitimacy of franchisor. The operation term, and scale of company owned outlet increase the efficiency of franchisor, And both legitimacy and efficiency increase of franchisor's current achievement.

• 한국벤처창업학회:학술대회논문집
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• 2017.11a
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• pp.53-61
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• 2017

최근 창업분야에서 나타나는 현상을 보면, 창업자에게 창업기회가 일생에 한번만 오는 것이 아니라 몇 차례의 창업을 시도한 창업자를 많이 볼 수 있게 된다. 이러한 경우에 창업자의 성공과 실패에 대한 과거의 창업 경험이 이후에 진행되는 창업의 성패에 중요한 요인으로 작용하는 것을 창업에 있어서 주된 현상으로 관찰하게 된다. 따라서, 본 연구는 이와 같은 현상에 주목하여 1차 창업을 한 독립창업자가 사업을 더욱 성장시키기 위한 전략으로 2차 창업을 계획하고 진행하는 현상에 대한 연구를 진행하고 한다. 연구를 통해 1차 창업을 진행한 독립창업자가 2차 창업이라고 할 수 있는 프랜차이즈 가맹본부의 창업을 성장전략으로 고려할 때, 어떤 요인이 영향을 주는지를 살펴보고, 이 요인들 사이에는 어떤 관계를 갖는지를 알아보고자 하는 것이 본 연구의 목적이다. 본 연구는 기존 선행연구를 바탕으로 한 이론적 배경으로 연구를 진행하고자 독립창업자의 기업가정신과 환경요인을 독립변수로, 프랜차이즈 가맹본부 창업의지를 종속변수로, 창업자의 창업경험과 프랜차이즈 가맹본부 창업교육을 매개변수로 설정한 이후에, 각 변수 간에 어떤 영향을 주고 있는지에 대한 연구를 진행하기 위해 설정한 연구모델에 대하여 크게 4가지의 가설을 설정하고 이에 대한 실증분석을 진행하였다. 본 연구의 결과를 바탕으로 살펴 보면, 독립창업자의 프랜차이즈 가맹본부 창업의지가 높아지기 위해서는 1)독립창업자의 기업가 정신이 높고, 환경요인이 우호적일수록 프랜차이즈 가맹본부 창업의지에 긍정적인 영향을 주게 되고, 2)독립창업자의 창업경험을 통해서 자기효능감이 높아짐으로써 프랜차이즈 가맹본부 창업의지에 긍정적인 영향을 주게 되고, 3)프랜차이즈 가맹본부 창업교육의 참여 기회를 통해 프랜차이즈 가맹본부 창업의지에 긍정적인 영향을 주게 됨을 제시하고 있다.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.14 no.3
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• pp.141-151
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• 2019

This paper aims to investigate the moderating effects of relationship quality between support services of food service franchisor and performance(re-contract intention) in food service franchise. For analyzing the relationship of them, the support services of food service franchisor categorized with initial service and continuous service. Also, the factors of relationship quality(satisfaction, trust, commitment) classified into detailed subfactor by confirmatory factor analysis. As a result, we found some statistically significant effects between the support services of food service franchisor and factors of relationship quality, and they sequentially affects to re-contract intention. Also, it's analyzed that factors of relationship quality have a role as a moderating variables by research model. That is, as a presented with previous research, there is verified that relationship quality is caused by support services of food service franchisor. Also, relationship quality factors significantly affect to performance(re-contract intention). Some guidelines for practicing potential food service franchise as a result of this would include; first of all, it is important to support the potential food service franchise consulting approach for some competitive advantage; secondly, effective governmental support programs for food service franchise should be developed for positive impacts of according to these results.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.7 no.2
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• pp.157-165
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• 2012

The specific gravity is heavily focused on the service industry in the economic development of domestic and overseas in these days. This will be predicted to increase persistently in the future society. Therefore the franchise system has been diffused as one of a management methods for these service industry. The franchise system is an advanced country's circulation system which has been populated in an advanced country. After the opening of circulation market, rapid growing trend has been showing on foreign country's popular brands in the local domestic market. So the franchise system has been largely focused on among the domestic manufacturing and the circulation companies. This study is to review how the management characteristics(headquarters' supports, communication, menu development, compensation) will affect the fairness perception of franchisee owner. The results of my study are as follows; It appeared that communication, menu development and compensation affected all the distribution fairness and the procedure fairness affirmatively.

• Journal of Distribution Research
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• v.8 no.1
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• pp.47-67
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• 2003

The purpose of this study is to investigate three issues. First, we investigated four control mechanisms that might increase the franchisee's perception of franchiser commitment: a franchiser's TSIs, relational norms, monitoring, and qualification programs. Second, we proposed that appropriateness and efficacy of these control mechanisms in fostering franchiser commitment might be changed over the relationship life cycle. Third, we examined how bureaucracy and levels of franchiser's commitment related to relationship satisfaction. Through empirical analysis, research results indicate that a franchiser's TSIs and relational norms are positively associated with the franchisee's perception of franchiser commitment. In detail, what increase franchisee's perception of franchiser commitment in short-term relationship are franchiser's TSIs but relational norms are more important in the long-term relationship. In addition, the results show that franchisee's perception of franchiser commitment, participation and formalization are positively related to relationship satisfaction.

• Journal of Distribution Science
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• v.9 no.2
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• pp.49-59
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• 2011

A franchise can be said to be the main method of distribution and marketing. It appears to be the future of the retail industry and is one of the world's fastest growing businesses sectors, as many policy reports and research results have acknowledged. Korea's franchise industry began in the 1970s, spread out into many areas (including food services, retail, and the service industry), and has grown by over 10% each year ever since. The industry's influence on the national economy becomes ever greater. Although the size of the franchise industry is expected to grow as it spreads and as the government expands its support, it has not yet attracted much academic interest. Research has so far been very fragmented. The main interest has been the relationship and conflicts between the head offices and the affiliates. No study has yet occurred on whether the concepts of satisfaction and intent to conclude a contract directly affect the success or failure of the affiliates. Few studies have empirically inquired into the demographic characteristics and abilities of the affiliates that significantly affect their results. Domestic franchise industries must prepare to leap from quantitative to qualitative growth. Most important is the need for affiliate headquarters and affiliates to build confidence between them. A friendly and reliable relationship between affiliate headquarters and affiliates will eliminate distrust from the franchise and maintain a healthy franchise system. This study suggests that current and prospective heads of affiliation should concentrate not on attracting affiliates but on investment and techniques of affiliate support. They should work on the reinforcement of brand power, the appropriate affiliate business environment, systematic education/training, taking burdens off the affiliate business persons, consolidating the relationship with the affiliate business persons, marketing mix factors (e.g. products, price conditions, logistics and shipping services, promotion, supervising and supervisor, operation procedures/processes, and material evidence); these all greatly affect the success or failure of the affiliate business. Supporting the affiliates is an important factor that enhances their results and satisfaction and consequently increases the positive recommendations to others and the ratio of recurrent conclusions of contracts, which ultimately generate the growth of the franchises. In addition, it is suggested that prospective franchise founders should make every effort to choose a good head office since the characteristics of the head office greatly influence the success of the affiliates. This study is significant in that it grasps the characteristics of the head office of affiliation and of the affiliates that influence affiliate results in ways not yet academically attempted.

• Korea Trade Review
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• v.42 no.5
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• pp.1-18
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• 2017

This study focuses on the recent case held as to control in franchising. On the basis of analysis of the recent case, it examines the validity of the decision and suggests practical advice. The extensive judicial precedent has held that the franchisor and the franchisee possess the independent contractor relationship. But Williams v. Jani-king of Philadelphia Inc. suggest the conversion of the franchisee's status to an employees instead of an independent contractor. Franchisees allege that they were wrongly classified as independent contractors instead of employees because Jani-King had the ability to control the manner in which franchisees perform their day-to-day tasks. The appeal court held that Pennsylvania law does not distinguish between controls put in place to protect a franchise's intellectual property and controls for other purposes, and a franchisee may be an employee or an independent contractor depending on the nature of the franchise system controls. However, some degree of controls by the franchisor over the franchisee is inherent in the franchise and may even be mandated by the federal and state laws. Moreover, the appeal court affirmed that the franchise agreement, policies manual, and training manual alone could be sufficient to resolve the employment status. But it seems appropriate that the right to control on the documents is considered with the actual control.

• Journal of Distribution Research
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• v.14 no.2
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• pp.31-66
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• 2009

This study investigates the effects of supervisors' leadership style on franchisees' trust and commitment in a franchise system. We classified leadership into two styles - transformational leadership vs. transactional leadership, and it was hypothesized and tested that these two leadership styles have differential effects on trust and two different types of commitment - calculative commitment vs. affective commitment. A questionnaire survey was conducted to collect the data and a total number of 184 Korean franchisees in diverse industries participated to the survey. Using a structural equation modeling, we confirmed some differential effects of the two leadership styles. Transformational leadership was found to have positive effects on franchisees' trust in and affective commitment to the franchisor, while it has no effects on calculative commitment. On the other hand, transactional leadership was positively related to calculative commitment to the franchisor. But it had no effects on trust and affective commitment. Meanwhile, we also found that trust positively affects on both types of commitment. The results of this study suggest that the quality of franchisor-franchisee relationships can be improved by supervisor's strong leadership, especially by transformational leadership, and that transformational leadership, when compared to transactional leadership, is more important for developing a long-term and stable franchisor-franchisee relationship.

• Journal of Distribution Research
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• v.17 no.4
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• pp.81-101
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• 2012

A franchise system develops competitive products for a franchise store through the system established by the franchise head office. Therefore, it has advantages of expanding the marketing effect since the risk of failure is reduced for a founder and the franchise head office supports the overall sales, advertisement and promotional activities. Also, a franchise store has advantages of fulfilling necessary facilities and tools on advantageous terms, reducing expenses by purchasing in bulk, and getting a supply of products with stable qualities. However, aside from such advantages, franchise head offices are forcing franchise stores to make unnecessary investments in equipments and remodel the interior. Also, franchise business operators are being made to share the cost of marketing and multiple franchise stores are being approved within the same business district, and franchise business operators are suffering damages. Therefore, cases of shutting down a franchise store or not renewing the contract are frequent. From the position of a franchise head office, profits that are generated from franchise fees, interior remodeling fees and supplying facilities and materials will increase as the number of new franchise stores increases. However, franchise stores are faced with difficulties due to excessive competitions between similar types of businesses and the overlapping of business districts that come from increases in the number of stores, and they eventually end up shutting down. Therefore, in order for a franchise business operator and franchise head office to grow and develop continuously, opening new stores is important, but successfully renewing the contract by maintaining a relationship with an existing franchise business operator is desirable. In this aspect, a study that examines the elements that can affect the relationship between a franchise business operator and franchise head office is believed to be important for the development of the franchise industry and creating safe jobs for the public. With an emphasis on the relationship between a franchise head office and franchise store, this study attempted to examine the effect of characteristics of a franchise head office and franchise business operator on the bilateral relationship such as the faith and immersion, and wished to review the effects of such faith and immersion on the satisfaction of a franchise store, including an intention of renewing the contract. In particular, in the current situation of great uncertainties in the market, this study also wished to examine how uncertain market elements will affect the relationship between the characteristics of a franchise head office and franchise business operator, and the faith and immersion. The study revealed that among the characteristics of a franchise head office, the standardization management of a franchise head office hinders a franchise store's faith and immersion in a franchise head office. Also, a franchise head office's support was shown to increase a franchise store's faith and immersion. However, it was revealed that a franchise head office's regulation and incentive policies for a franchise store do not affect a franchise store's faith and immersion. Among characteristics of a franchise business operator, a franchise store's healthy financial status and entrepreneur spirits were shown to enhance the faith and immersion in a franchise head office. However, it was shown that excellent business abilities of a franchise business operator actually reduce the immersion for a franchise head office. Also, the faith and immersion in a franchise head office were shown to enhance the intention of renewing the contract by increasing the satisfaction for a franchise head office. In addition, it was originally believed that the effects of a franchise business operator's characteristics on the faith and immersion in a franchise head office will vary depending on the market uncertainty, but the effect of a franchise business operator's characteristics depending on the recognition of uncertainties was shown to be insignificant. Such findings show that instead of making a franchise store pay for equipment investments and marketing and obtaining profits by force, a franchise head office should actively support a franchise store so that a franchise store's business activities can be conducted well, which will bring profits to a franchise store and ultimately to a franchise head office. This is a more desirable direction for the development of both parties. Implications of such findings are summarized as follows. First, it was shown that a franchise head office's standardization management actually reduces a franchise store's faith and immersion. Therefore, it is believed that instead of conducting standardization managements for regulating and managing franchise stores, measures should be developed so that franchise stores can actually participate voluntarily. For this, a head office should put in efforts to develop and provide standardized manuals, and make sure that a self-review system takes root. Second, a franchise head office's incentives did not have significant effects on the faith and immersion, but the support was shown to be effective. Therefore, it can be seen that instead of taking post-measures for a franchise store, taking pre-measures of actively supporting is more effective in maintaining a franchise store. Third, among characteristics of a franchise head office, it was shown that a franchise store's healthy financial status increased the faith and immersion in a franchise head office. Therefore, when selecting a franchise business operator, instead of thoughtlessly opening up franchise stores for the profit of a head office, it is believed that reviewing a franchise business operator's financial firepower and credit status is necessary. As for academic implications, previous studies examined the relationship by focusing on the characteristics of a franchise head office and franchise store, but this study focused on the characteristics of a franchise business operator. Therefore, this study dealt with the importance of a franchise business operator's competence, and is significant because it revealed the fact that a franchise business operator's excellent commercialization ability can become an element that hinders the immersion in a franchise head office. It was originally believed that a franchise store's characteristics will have different effects on the faith and immersion depending on the market uncertainty, but it was shown that the effect of a franchise store's characteristics depending on the recognition of uncertainties was insignificant, and that is the limitation of this study.

• Proceedings of the Korea Technology Innovation Society Conference
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• 2017.05a
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• pp.713-729
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• 2017

프랜차이즈 산업은 전문 창업시스템을 구축한 가맹본부가 사업 초기부터 가맹점의 영업활동을 지원하고 사업 노하우(know-how) 및 경영 기술을 지원 해줌으로서 창업 활동을 용이하게 도와주고 있다. 프랜차이즈 가맹점 창업의 장점은 브랜드 인지도를 활용한 영업활동으로 창업초기부터 일정한 수익을 보장 받을 수 있는 이점이 있어 소상공인의 관심이 매우 높다. 본 연구에서는 프랜차이즈 지원서비스인 가맹본부의 상품공급 수준, 고객관리 지원, 슈퍼바이저지원, 교육훈련 지원, 마케팅지원이 가맹점주의 경영성과에 어떻게 영향을 미치는지를 연구함으로 써, 가맹본부와 가맹점간의 서로 상생할 수 있는 지원서비스에 대한 전략적인 방법과 기업가정신과 개인 특성이 경영성과에 미치는 영향을 분석하는 것이다.