• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.4 no.1
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• pp.89-111
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• 2009

Since the financial crisis in 1997, the Korean economy has a steady increase of people who tend to establish their own business by 2008. Business foundations can be divided into independent businesses and franchise businesses. This study focuses on what type of business owners among franchise enterprisers can achieve success. This is intended to reduce trial and error by drawing upon success factors in the stages of establishment, operation, and achievement based on a total sample of 350 individual business sites. The result shows that the success factors in the stage of establishment include (1) Preparation such as foundation education (2) Marketing capability (3) Appropriateness of Business Item (4) Other founder's entry barrier, conglomerate's entry regulation and (5) Head Office Support including service education, market survey education, marketing support. On the other hand, the success factors in the stage of operation include the supervisor capability, Marketing capability, Head Office Support, Customer Management Capability and Employee Satisfaction. Additionally after choosing the major factors according to each stage, multiple regression analysis was processed and interpreted. Finally, we believe that the franchise or independent business foundations can make a profit as well as increase continuous sales and customer satisfaction only with thorough and careful preparation in all stages of foundation and operation. This study is expected to contribute to those who prepare new business in franchise domain to minimize failures with deep consideration of the success factors in the franchise.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.6 no.1
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• pp.39-58
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• 2011

The Study on the Influence of Selection factors of Franchise System and Franchisee's Satisfaction in the Food Service Franchise Industry. Franchisors can use franchisee selection criteria as a key input control to enhance the outcomes of their future franchisees. A business technique based on long term contractual arrangements between two legally independent businesses and relying on certain inputs from both parties for success and survival has significant potential for conflict. Furthermore,with many independent small businesses falling to reach their full potential, it is important to evaluate franchising as an alternative system of business management and to identify the characteristics of franchisor and franchisees which contribute to the satisfactory operation of a franchised small business. Thus, the objective of this study was to investigate a possible relationship between franchisee satisfaction and certain characteristics of the franchisor and of the franchisees themselves. In accordance with results of a hypothesis verification, a Selection factors of Franchise affects positively a Franchisee's Business Satisfaction.

• The Korean Journal of Franchise Management
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• v.3 no.1
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• pp.46-72
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• 2012

Currently, the service industry share in domestic industry is increasing. Especially the size and marketability of the food service industry, which satisfies with basic human desire, is growing significantly. In this food industry, the coffee industry is recognized as a different area from the traditional food industry. The age of instant coffee at low price has gone. Today, more and more customers want to drink more delicious coffee and coffee that is good to their bodies. Especially as individualism has been rambling, more and more people enjoy individualism and want their personal space. This is why coffee speciality stores have been universalized. Also, as coffee speciality stores have been generalized, their own service quality is necessary and they should satisfy and affirm their loyalty to the customers in line with the enhancement of service quality. The purpose of this research is understanding of the impact of coffee specialty shop's service quality on affective commitment and repurchase intentions. The results of an empirical study in this research are as follows: First, compassion among the execution factors of coffee specialty shop's quality has a positive effect on both of affective commitment. But typicality and reactivity don't. Second, affective commitment have a positive effect on repurchase intentions. With a base of the above research result, we should comprehend that another service quality factor exists compared to other dining-out industry and establish marketing strategies in order to contribute to enhance repurchase intentions for the customers.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2003.05a
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• pp.780-791
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• 2003

최근 다양한 업무형태가 등장함에 따라 특정업종이나 기업을 대상으로 기업간 비즈니스에 대란 정보시스템 구현 및 업무 프로세스 리엔지니어링을 통한 혁신을 지원해 줄 수 있는 체계의 도입 및 구현에 대한 요구가 증가하고 있다. 기업이 해당 업무의 정보시스템 구현과 업무의 경쟁력 강화를 뒷받침하기 위해서는 현행 업무프로세스에 대한 표준화가 중요란 사항이나, 현재 기업간 업무에 대해서는 이를 뒷받침 해줄 수 있는 프로세스 및 데이터의 분류와 분석을 위한 통합화, 표준화 작업이 부족한 상태이며, 이를 기반으로 이루어지는 업종별 핵심 기능 프로세스에 대란 표준화와 개발 분야도 미비한 실정이다. 특히 보편적으로 기업간 업무가 많이 발생하는 유통 분야의 경우 이러한 업종내 업무프로세스의 표준을 체계화 하는 필요성이 크게 대두되고 있다. 최근 매우 활성화 되고있는 프랜차이즈 산업의 경우 프랜차이즈 비즈니스의 특성상 경영효율을 높이기 위해 본사의 관리 통제 하에 운영되고 있으며, 상품도 본사에 의해 통일적, 정형적으로 기획되는 둥 프랜차이즈 비즈니스 특유의 경영 특질을 갖고 있다. 그러나 업무에 대란 표준화가 되어 있지 않은 상태에서 프랜차이즈를 운영한다면 본사차원에서는 오히려 인원과 경비만 늘어 프랜차이즈의 가장 큰 장점인 다점화의 장점이 없어지게 되고, 프랜차이즈 사업을 하고자하는 가맹점 입장에서도 프로세스의 차이와 비표준에서 오는 혼란인 많아 이를 쉽고, 체계적으로 접근 딸 수 잇는 표준 프로세스 작업의 필요성이 높다고 할 수 있다. 본 논문에서는 보편적으로 기업간 업무가 많이 발생하는 유통 분야의 프랜차이즈 산업을 대상으로 기업정보시스템 구현 및 경쟁력 강화를 뒷받침하기 위해서, 기업간 프로세스 협업(collaboration) 부분의 데이터 및 서식, 이를 취급하는 기능과 프로세스에 대란 분석을 통해 업무 프로세스 모델링 방법론과 관련한 모델링 지침 및 메타모델을 이용한 표준 업무 프로세스 모델을 개발하여 기업간 업무 프로세스 표준화에 대한 체계적인 관리에 대한 방안을 연구하고자 한다.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.13 no.1
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• pp.131-143
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• 2018

This paper aims to investigate the moderating effects of strength and opportunity factors between entrepreneurship of food service franchisor's CEO and performance in hood service franchise. For analyzing the relationship of them, the entrepreneurship factors categorized with organizational risk taking, innovativeness, and proactiveness from previous researches(Khandwalla, 1977; Miller, 1983; Miller, 1983). Also, strength and opportunity factors classified into detailed subfactor by confirmatory factor analysis. As a result, we found some statistically significant effects between the strength and opportunity factors and entrepreneurship factors, and they sequentially affects to performance. This result means that strength and opportunity factors have a role as a moderating variables. That is, as a presented with previous research, there is verified that entrepreneurship is caused by organizational risk taking, innovativeness, and proactiveness. Also, strength and opportunity factors significantly affect to business performance. 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.

• The Korean Journal of Franchise Management
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• v.5 no.1
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• pp.85-108
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• 2014

This study provides the information about size, financial structure, profitability and growth of franchisors using financial data(asset, liability, equity, sales volume, operating income and net income) in uniform franchise offering circular of fair trade commission. The data were collected from 1,050 franchisors in various business fields: fast food, family restaurant, bakery, agriculture & fishery and liquor shop in the uniform franchise offering circular in 2012 and 2011. Results of this study are as follows: For company size, median of total assets was KRW 675 million and the accumulated median assets rate was 0.48%, but the accumulated median company numbers were 49.9%, which showed small size. For financial structure, 525 companies were below 200% debt ratio, while 314 (29.9%) companies were in over 200% debt, and 211 (20.1%) companies were impaired in capital. These also showed financial structure was vulunerable. For profitability, median of ROA for total companies were only 4.72%, which showed low profitability. For growth, median of growth rate for sales were 7.57% per year, which showed mature industry. In overall, the results showed franchisors should improve their financial status.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.10 no.3
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• pp.660-664
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• 2009

Over the past several years many researchers have attempted to explore the determinants of franchise restaurant success. This study is a research on the critical success factors of the franchise restaurant management which is expanding. The purpose of this study is to present right information to the managers of franchise restaurant fur their marketing and sales. The information is achieved from studying customers' intention. I also measured customers' satisfaction fur management of franchise restaurant and assessed maturation extent. In conclusion, The results show franchise restaurant's menu, atmosphere and accessibility are a considerable level in research results. However, franchise restaurant's brand, service, food, price and size are low level(determinants fact). Therefore, franchise managers have to complement a those factors. The result indicated that the points in time of forecast about the franchise restaurants CSFs are in 5 years mainly.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.14 no.5
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• pp.25-42
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• 2019

The purpose of this study is to analyze the effect of internal competence of small business on the competitive advantage and start-up intention. Through this, which key competence of small business can be proposed for market growth against of large companies that have a great capital power. Also, implications for development direction can be suggested. For this purpose, technology capability, financing capability, marketing capability, and product/service differentiation capability factors were set as independent variables, as well as competitive advantage as a mediating factor, and startup intention to be franchiser as a dependent variable. For the analysis, a structured questionnaires survey was conducted to 276 domestic small business in capital area. The main results are as follows. First, in relation to the internal competency and the competitive advantage of small businesses, it was found that technological capabilities, financing capabilities and product (service) differentiation have a positive effect on competitive advantage. Second, the relationship between the internal capacity of a small entity and startup intention to commercialize a franchiser business indicates that its financing capacity and marketing capabilities have a positive effect on startup intention to commercialize the business, and that competitive advantage has a significant effect on startup intention to commercialize the franchise. Third, competitive advantage was found to mediate the relationship between internal competency and startup intention. Finally, it was shown that the internal capacity of a small business has a regulating effect in relation to its financing capacity, marketing capabilities and startup intention to commercialize the franchise, and that it also had a regulating effect in relation to its relationship with its competitive advantage and franchise suitability. Based on the above results, if small business can take competitive advantage in the market, they also consider startup intention to commercialize a franchiser, in addition, it is expected that one suggestion can be made from an internal capacity perspective required more emphasis on operations and management as an alternative to expanding small businesses' business, including market access measures that can be linked to internal capacity factors of small businesses.

• Journal of Digital Convergence
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• v.18 no.4
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• pp.177-191
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• 2020

This study examines the effect of the self-overviewing attributes derived from agency problem on the cost behavior in franchise industry. To solve the research problem, we developed the proxies for self-overviewing attributes of domestic franchise CEO and used Anderson et al. (2003)'s cost behavior model to test hypothesis. Moreover, we grouped the self-overviewing variables for additional test. We find that operating costs are more sticky for firms which present higher CEO's self-overviewing attributes in franchise industry. Second, we find that the greater the self-overviewing tendency, more strengthened cost stickiness when sales decrease. This study is meaningful in that we developed proxies for self-overviewing propensity, such as the hypodermic behaviors of franchise CEO, which have not been performed in previous studies, to enhance future studies of franchise CEO. Futhermore, we empirically provide the effects of CEO's self-overviewing attributes on the operating costs behaviors, suggesting useful information to franchise stakeholders such as prospective start-ups, franchisee and investors.

• The Korean Journal of Franchise Management
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• v.2 no.1
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• pp.152-172
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• 2011

This study aims to analyze the effect of franchisor's pre-open support services on franchisee's relationship quality and performance in foodservice franchise system. The analysis data was collected from 500 franchisees located in Seoul and Gyeonggi-do of Republic of Korea. The finding are as followings: firstly, the factors of information providing, market researching, interior and equipment supporting, education and training supporting, sale and promotion supporting, and legal supporting influence positively franchisee's satisfaction. Second, regarding relationship among relationship quality, satisfaction positively influences trust and commitment, and trust positively influence commitment. Third, relationship quality influences positively both financial and non-financial performance.