• 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.

• Journal of Distribution Research
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• v.16 no.5
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• pp.141-169
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• 2011

This study compares the business performances and the socioeconomic and sociopsychological characteristics of franchisees and independent business owners (IBOs). On the basis of extant theoretical arguments and empirical evidences it was expected that franchisees are different from IBOs in these aspects because unlike IBOs they are using franchising as their way of businesses and should satisfy the requirements imposed by franchisors. Analyzed in the current study was a national survey database of 424 franchisees and 5,690 IBOs compiled by the Small Enterprise Development Agency in 2011. As expected, it was found that franchisees were significantly different from IBOs in such traits as financial and managerial capabilities, business experiences, demographic and socio-psychological characteristics, information searching efforts, business performances, and their perceptions of business obstacles. It was also found that the effects of these traits on business performances were quite different between franchisees and IBOs. The findings of the current study provide some meaningful suggestions for government agencies. Given that franchises and IBOs have different traits, their demands for governmental policy should be different, and consequently, it might be argued that government agencies should treat the two groups separately and should increase their efforts to develop appropriate supporting policies for each group. With respect to franchisor's practices for franchisee selection, it is also argued that in order to enhance franchisee performances franchisors need to examine thoroughly the traits of prospect franchisees. This study concludes with discussion of several theoretical and methodological limitations for future research.

• 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.

• 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.

• 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.

• 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.

• The Korean Journal of Franchise Management
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• v.2 no.1
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• pp.173-199
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• 2011

A franchisee has to depend on the overall system, such as knowhow and management support, from a franchisor in the franchise system and the two parties do not start with the same position in economic or information power because the franchisor controls or supports through selling or management styles. For this, unfair trades the franchisor's over controlling and limiting the franchisee might occur and other side effects by the people who give the franchisee scam trades has negatively influenced on the development of franchise industry and national economy. So, the purpose of this study is preventing unfair trade for the franchisee from understanding the causes and problems of dispute between the franchisor and the franchisee focused on the dispute cases submitted the Korea Fair Trade Mediation Agency and seeking ways to secure the transparency of recruitment process and justice of franchise management process. The results of the case analysis are followed; first, affiliation contracts should run on the franchisor's exact public information statement and the surely understanding of the franchisee. Secondly, the franchisor needs to use their past experiences and investigated data for recruiting franchisees. Thirdly, in the case of making a contract with the franchisee, the franchisor has to make sure the business area by checking it with franchisee in person. Fourthly, the contracts are important in affiliation contracts, so enacting the possibility of disputes makes the disputes decreased. Fifthly, lots of investigation and interests are needed for protecting rights and interests between the franchisor and franchisee and preventing the disputes by catching the cause and more practical solutions of the disputes from the government.

• 베이커리
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• no.2 s.319
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• pp.81-92
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• 1995

성장을 위한 프렌차이즈 업체들의 경쟁이 갈수록 치열해 지고 있다. 이를 위해 각업체는 가맹점 확산과 부실 점포, 폐점 방지를 위해 두마리 토끼를 잡는 힘겨운 노력을 기울이고 있다. 이에 본지는 각 프렌차이즈 업체가 어떻게 가맹점을 모집하고 있으며 성장을 위해 95년 어떤 사업계획을 갖고 있는지 살펴봄과 동시에 향후 전망에 대해 알아본다.

• Journal of Distribution Research
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• v.17 no.5
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• pp.25-38
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• 2012

In general, commercial franchisors prefer franchisees with high entrepreneurship and business capability. However, these entrepreneurial franchisees with high capability tend to depend less on franchisors. Although franchisees with less entrepreneurship and low capability need intensive care from franchisors, some of them result in business failure due to improper supports from incapable franchisors. This paper suggests several propositions regarding social franchising's role in supporting the low-income urban people on the premise that social franchising or micro-franchising provides implications for franchisor strategic orientations for franchisees with little capital. Through literature review about social franchising and micro franchising, some implications are drawn. Many social enterprises use franchising to get growth and sustainability, because franchising allow social enterprise to expand its scale and to achieve economies of scale despite of its non-commercial and social purpose. And continuous support and training undertake the most important role to achieve its social purpose. In commercial franchising, especially small business format franchising sector, franchisor have to consider not only commercial purpose but also social responsibility because of low capability and less entrepreneurship of franchisee. If franchisor pursue only own profit, this can increase the conflict and franchise system failure. So far many franchisors are concerned with own profit and external growth. But it is necessary to consider symbiotic relationship, social responsibility and sustainability more for the sake of desirable industrial growth in the future.

• The Korean Journal of Franchise Management
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• v.2 no.2
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• pp.1-23
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• 2011

The Freedom of Information System has been introduced into the society based on the Fair Trade Transactions Act, which was established by Fair Trade Commission (FTC) on May, 2002. However, the system itself has showed limitations in guaranteeing a reliability and transparency of the disclosure document. Thus, since February, 2008, FTC not only made franchisors to register disclosure documents but also adopted the Disclosure Document Registration System, which forced them to provide registered disclosure documents to franchise applicants and franchisee. Franchisors consider the newly adopted Disclosure Document Registration System a restrictive system. However, considering the recent trend of fast growing franchising industry and the importance of being competitive, franchisors need to utilize the disclosure documents to promote their business and to gain trusts from franchise applicants by providing truthful information. In that way, franchisors will be able to establish a foundation that franchising industry might be successful and reduce the agency fee by cutting out conflicts with franchisees. Thus, this study aims to study the ways of effective preparation of disclosure document and its utilization from a franchisor viewpoint.