• Journal of the Korea Convergence Society
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• v.13 no.4
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• pp.63-70
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• 2022

Due to the recent changes in the education market and Corona, Consumers have moved to the tutoring and online learning markets, and the large-scale education service franchise business is reorganized into a small-scale franchise, a business model that maximizes the profit structure from a position where sales are important. Recently, a new learning balance model that can provide individualized services from teacher-centered to student-centered, motivate students is required. In this paper, we propose a new mathematical franchise model (K-MODEL) that can improve a company's profit structure while satisfying the recent education trends and consumer needs from the point of view of the franchise. K-MODEL expects franchisor and franchisees to have a stable profit structure by developing differentiated content and services, learning and operating processes, and various programs to improve learning achievement.

• The Korean Journal of Franchise Management
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• v.5 no.1
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• pp.65-84
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• 2014

The purpose of this study is to review the theories and cases of performance sharing in the franchise industry to present a method for more effective franchise performance-sharing. To that end, this study reviewed the theory on resource dependence and the theory on inequality to describe the performance-sharing between the franchisor and the franchisee and their relationship. It also looked at the cases of a week-in cooler system at 'Beer Market', the allocation of fees for alcoholic beverage sales to franchisees, the scholarship program of 'Onigiri and Ikyudon' and 'Bonsamo' which is a franchisees' committee for Bonjuk to introduce examples of performance-sharing. Through a theoretical review and case review, this study presents five types of methods for performance-sharing. First, 'the sharing of core competence by the franchise company; second, 'the establishment of a royalty culture'; third, 'scientific analysis of markets and establishment of a revenue forecast system'; fourth, 'reinforced financial support from the franchisor'; and lastly, 'the positive application of franchisees' committees'. Such methods are expected to provide a groundwork for mutual benefit and co-prosperity between franchisor and franchisee.

• Journal of Distribution Research
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• v.15 no.4
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• pp.87-117
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• 2010

'Entrepreneurship' which means spirit or activity seeking new value by challenging boldly the uncertainty is one of the most important concept in 21st century business environment. Franchise Industry taking a relationship with distribution industry also needs entrepreneurship. As franchise industry consists of small and medium enterprises, the entrepreneurship of franchisor's CEO is important for the franchisor's growth. The purpose of this study is to analyze the factors influencing on the entrepreneurship of franchisor's CEO, and the effect of the CEO's entrepreneurship on franchisor's performance. For this purpose, this study set CEO's psychological characteristics, market characteristics, and social-institutional characteristics as independent variables, CEO's entrepreneurship as parameter variables, and franchisor's performance as dependent variables. And to analyze this study model, this study collected questionnaires from 152 franchisors' CEOs, and uses SEM(Structural Equation Modeling). As the result, 'CEO's Entrepreneurship' influenced on both 'Franchisor's Financial Performance' and 'Franchisor's Non Financial Performance'. The results of this study provide some guides for franchisor's CEO and government policies.

• Journal of Distribution Research
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• v.16 no.3
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• pp.33-75
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• 2011

The ownership structure of a franchise system is determined by the franchisor's strategic choice. A close look at the extant theories and perspectives in economics and management such as resource scarcity theory, agency theory, transaction cost analysis, and mixed ownership theory reveals that firms choose their ownership structure for the sake of economic efficiency, profit potentials, the chance of survival, and other strategic concerns. The present study, on the basis of strategic choice perspective, reviews the divergent theories of a franchise system's ownership structure and its determinants, thus providing a theoretical framework for comparing the contradictory arguments along the several critical dimensions. We also developed and tested the conflicting hypotheses regarding key determinants of ownership structure including firm's age, size, transaction-specific investments, uncertainty, and risk-sharing propensity. Using a FDD (Franchise Disclosure Document) data set of 543 Korean franchisors, we found that the years in business, the total number of employees, days of training, the inverse of the years of franchising, and the requirement of royalty payment have positive relationships with the proportion of company-owned outlets to total number of outlets. On the other hand, the proportion of company-owned outlets was found to have negative relationships with the total number of outlets and the extent of geographic dispersion of outlets, but to have no significant relationships with the initial investment required and the inverse of contract length. Based on the findings, we provide several theoretical and managerial implications for studying ownership structure of franchise systems.

• Culinary science and hospitality research
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• v.15 no.3
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• pp.54-68
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• 2009

This study is to examine the structural relationships between relationship learning, their antecedents such as transaction specific assets, and environmental uncertainty, and long-term orientation, overall satisfaction and recontracting intention in the context of the foodservice franchise industry. The data is analyzed with structural equation modeling with Amos 5.0 and SPSS 14.0. The result of the overall model analysis appeared as follows: $x^2=57.75$, df=9, p=0.00, GFI=0.95, AGFI=0.81, RMSR=0.03, NFI=0.92, CFI=0.93. Since the result of the overall model analysis demonstrated a good fit, we could further analyze our data. The results of this study are as follows: First, information sharing of relationship learning had a significantly positive effect on long-term orientation. Second, information sharing of relationship learning did not have a significantly positive effect on overall satisfaction. Third, shared interpretation of relationship learning had a significantly positive effect on long-term orientation and overall satisfaction. Fourth, developing memories of relationship learning did not have a significantly positive effect on long-term orientation and overall satisfaction. Fifth, overall satisfaction had a significantly positive effect on long-term orientation. Sixth, long-term orientation and overall satisfaction had a significantly positive effect on recontracting intention. Finally, transaction specific assets and environmental uncertainty had a significantly positive effect on relationship learning. At the end of this paper, limitations, further research directions, and implications are suggested.

• The Korean Journal of Franchise Management
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• v.1 no.1
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• pp.105-131
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• 2010

This practical study is to propose a model for efficiently implementing franchise management by Franchise Enterprise in franchise industry. Franchise system is established and mutual relationship is also fulfilled based on bilateral contract between franchisor and franchisee. After contract and opening the franchisee store, franchisees are continually supervised and administered according to mutually agreed process and procedures. In this regard, franchisor should have well-managed system for supervising and assisting franchisee efficiently and effectively. The purpose of this study is to set-up the concept of enterprise contract management(ECM) in Franchise Enterprise and to promote the systemization of franchise management, and also to present and propose the development tool for franchise-specific IT program which is called " Franchise Contract Management'Supervising System".

• Journal of Distribution Research
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• v.16 no.1
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• pp.1-27
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• 2011

I. Introduction: This study is to examine the structural relationships among exogenous variable (preliminary and post-support, franchisee's perceived business possibility, communication, moral hazard), the mediated variables(satisfaction, perceived risk, trust) and dependent variable(recontracting intention) in the food service franchise industry context. More specifically, this study has considered some realistic characteristics factors influencing satisfaction, perceived risk and trust between franchisors and franchisees and their further recontracting intention from the perspective of a practical approach. In this study, 437 data has been collected and used for the SPSS and AMOS analysis. The data were analyzed with structural equation modeling. Since the result of the overall model analysis demonstrated a good fit, we could further analyze our data. II. Research Model: This study is to examine the structural relationships among preliminary and post-support by franchisor, franchisee's perceived business possibility, and communication, moral hazard, has on effect on franchisee's satisfaction, perceived risk, trust and recontracting intention in the food service franchise industry context. Hypotheses are as following (Stern & EL-Ansary 1988; Oliver, 1997;Kee & Knox, 1970; Moorman, Deshpande & Zaltman, 1993; Perron, 1998; Zaheer, McEvily, Perrone, 1998). III. Result and Implication: We examined franchisee who have food service stores for samples of this study. The data were analyzed with structural equation modeling using path analysis. The result of the overall model analysis appeared as following: ${\chi}^2$ = 61.578 (d.f.=9, p<0.01), CFI =.990, GFI =.973, AGFI =.863, RMR =.019, RMSEA= .116, NFI = .988, TLI = .959. The findings can be summarized as follows: First, preliminary and post support of franchisor, perceived business possibility and communication positively influence to franchisee's satisfaction. Second, moral hazard of franchisor has negatively influence to franchisee's satisfaction and positively influence to perceived risk. Third, franchisee's satisfaction and trust has positively influence to recontracting intention. Fourth, franchisee's perceived risk has negatively influence to trust and recontracting intention. We can concluded that franchisor's preliminary and post support of franchisor, perceived business possibility and communication may be considered as the important factors influence to franchisee's satisfaction. Moral hazard has become a focused issue in franchise industry. Finally, the managerial implication has been stated as followings: First, in the process of building a systematic industry support franchise system and developing a creative business model, franchisee's stable profitability should be considered as the first important factor. The franchisee's trust to franchise may become a dominant factor that influence the business expansion of franchisor. Second, franchisor should communication with their franchisees and deal with the realistic difficulties faced by them with an effort. Third, the franchisor should achieve a synergy effect by utilizing the win-win strategy. The moral hazard strategy that achieving the profit through franchisee's damage will not be inadvisable to franchisor. Then the long-term oriented development and profitability can be maintained. To do so, the franchise industry may break away from the traditional business structure to improve management transparency and competitiveness on investment and organizational changing management. The conflict between franchisor and franchisee also can be reduced and big success can be achieved in the franchise industry.

• The Journal of the Korea Contents Association
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• v.17 no.3
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• pp.408-420
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• 2017

A franchisee owner, as an entrepreneur who is independent from a franchisor, has the greatest influence on the success of franchisee business. The effect of the franchisees' entrepreneurship on their performance can be different from that of self-employed business owners, due to the fundamental nature that the franchisor and franchisees share a standardized operation and business risks. Therefore, the purpose of this study is to demonstrate whether or not the relationship between the entrepreneurship and the performance, which has been popularized in general, is displayed in franchised stores as well. The current study analyzed the influence of innovativeness, risk-taking, and proactiveness on franchisees' performance based on the samples from 109 Small Size Educational Services franchisees. The results show that the franchisees' proactiveness is the only variable that affects the performance while the effect of the other variables was not significant. These results make implications that, for their business success, franchisee owners should be proactive in their target market, without compromising the quality of franchisor's standardized products and services by being innovative and risk-tolerant.

• Journal of Distribution Science
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• v.4 no.2
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• pp.21-40
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• 2006

Small and middle sized Franchise system channels experience conflicts because of constant interaction between franchiser and franchisee. However, it is rarely that attempt has been made to identify causes of conflicts in distribution of franchise industry. The purpose of this study was to explore cause of conflicts from the franchisee. For the study, data were collected from the owner or the shop-manager with a contractor in franchise systems. By means of in-depth interviews with multiple informants, their statement was analyzed qualitatively. From analysis of the resulting data, the causes of conflicts were associated with two broad sets, attitudinal and structural differences between franchisers and franchisees. First, attitudinal sources of conflict were identified as perception of subordinated relationships between channel members, delayed announcement on order changes, difficulties in communication by doing irresponsible behavior, different expectations between channel members in market territory and lack of consistent-supporting. Second, structural sources of conflict involved unilateral decision on interior, payment method, unreasonable delivery issue, treat franchisee with discrimination by the sales, in controlling against free management. There are limitations on generalization due to the results based on interview, but this study will be a useful exploratory step before designing a large scale survey.

• Proceedings of the Korean DIstribution Association Conference
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• 2006.02a
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• pp.15-42
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• 2006

프랜차이즈 시스템은 서로 독립적인 프랜차이즈 본부와 가맹점이 계약에 의해 상호의무를 준수하면서 운영되는 시스템이다. 이러한 프랜차이즈 시스템은 다른 유통경로 시스템과 마찬가지로 개방형 시스템이기 때문에 환경의 변화에 민감하다. 특히, 급속하게 변화하는 고객 욕구와 경쟁전략은 프랜차이즈 시스템의 성과에 매우 큰 영향을 미친다. 이처럼 환경의 변화가 심할 경우는 프랜차이즈 본부와 가맹점 간 관계결속이 중요한 데 강한 결속력을 가진 장기적인 파트너십이야 말로 변화하는 환경에 대응할 수 있는 무기가 된다. 본 연구는 이러한 환경의 변화 즉, 환경동태성과 프랜차이즈 시스템의 장기지향성을 다루고 있다. 연구의 주된 관심은 첫째, 수요부문과 경쟁부문의 환경 동태성이 프랜차이즈 시스템 구성원 간 장기지향성에 어떠한 영향을 미치는 지 밝히는 것이고, 둘째, 이러한 환경의 영향이 다양한 조절변수 (관계수명주기, 경로기후, 의존성)에 의해 어떻게 달라지는 지를 규명하는 것이다. 이러한 목적으로 본 연구는 국내의 대표적인 프랜차이즈 업체인 L사의 가맹점 96곳을 대상으로 설문조사를 실시하였다. 구조방정식 모형을 통한 분석결과 수요부문 동태성은 프랜차이즈 가맹점의 장기지향성을 약화시킨 반면, 경쟁부문 동태성은 강화시켰다. 한편 관계수명주기, 경로기후에 따라 수요부문, 경쟁부문 환경 동태성의 영향은 달라졌지만, 의존성은 유의적인 조절효과를 나타내지 못했다.