• The Korean Journal of Franchise Management
• /
• v.10 no.2
• /
• pp.7-18
• /
• 2019

Purpose - This paper attempts to provide an understanding of practice of franchising in eight countries - USA, UK, Australia, Brazil, China, Malaysia, South Africa and Nigeria. The bases of the review are: number of systems and outlets, employment generation, annual turnover, GDP contribution, legal and regulatory frameworks and country-specific franchise business practice nuances. Research design, data and methodology - the paper is descriptive, highlighting elements of the business practice that distinguish one country from another. Documentary data - mainly industry publications supplemented by empirical literature - was used for the review. Result - Although there are commonalities in the technical design and implementation of franchise business practice - especially the business model type - differences exist in terms of legal and regulatory frameworks guiding the industry across the eight countries studied. Conclusion - There are no two countries that have the same franchise practices. Franchise markets in the developed, and to some extent, the emerging economies have saturated. Franchise markets in African countries are at infant stage and thus, these countries are strategizing to attract foreign brands into their domains.

• Journal of the Korea Safety Management & Science
• /
• v.16 no.4
• /
• pp.359-369
• /
• 2014

Due to the severe market conditions, pre-entrepreneur seeks to start their business through franchise company. This paper, using the data envelopment analysis(DEA) method, examines efficiency of a group of franchise company in order to provide efficiency information with pre-entrepreneur. Output-oriented DEA model is applied in the investigation of efficiency, and the overall efficiency score is decomposed into pure technical efficiency and scale efficiency. The input variables selected to evaluate the efficiency are franchise deposit, franchise contribution cost and the output variables are sales and number of franchises, and length of business. The results of this paper show franchise industry have the low level of overall efficiency and the main sources of inefficiency is found technical rather than scale. As a result, this paper provides not only the current status of efficiency information of a franchise with pre-entrepreneur but also give warning when they sign-up with franchise business.

• Journal of Distribution Science
• /
• v.16 no.3
• /
• pp.59-68
• /
• 2018

Purpose - This study empirically examines the effects of environmental dynamics(dynamics of one's own company, dynamics of competitors, and dynamics of customers), within the franchise industry, on the dependence and conflict(dysfunctional conflict and functional conflicts) and the business performances(financial and non-financial). Furthermore, we empirically examined the effects of the dependence of franchise on the conflicts(dysfunctional conflict and functional conflict) and business performances(financial and non-financial). Finally, we empirically examined the effects of the conflicts of franchise (dysfunctional conflict and functional conflict) on the business performances(financial and non-financial). Research design, data, and methodology - Our study conducted a survey on the managers and owners of the franchises located in Seoul, Gyeonggi, and Incheon. The total number of valid samples was 230, and the structural equation model was analyzed by using AMOS program. Results - First, the environmental dynamics(dynamics of one's own company, dynamics of competitors, and dynamics of customers) in the franchise industry were shown to have statistically significant positive effect on the dependence of franchise. Second, among the environmental dynamics in the franchise industry, the dynamics of one's own company and the dynamics of the customers were shown to have a statistically significant positive effect on the dysfunctional conflicts of franchisees. However, in the franchise industry, the dynamics of competitors did not have a statistically significant effect on the dysfunctional conflict of the franchise. Third, in the franchise industry, the environmental dynamics(dynamics of one's own company, dynamics of competitors, and dynamics of customers) did not have a statistically significant effect on the functional conflicts of the franchises. Fourth, the dependence of franchise was shown to have a statistically significant positive effect on the conflicts(dysfunctional conflict and functional conflict). Fifth, the dysfunctional conflict of franchisees was shown to have a statistically significant negative effect on the business performances(financial and non-financial). Sixth, the functional conflicts of franchises was shown to have a statistically significant positive effect on business performances(financial and non-financial). Conclusions - From the franchise industry researches, the environmental dynamics were selected as the preceding factors and the relationship leading to dependence, conflict, and business performance were constructed into model.

• The Journal of Asian Finance, Economics and Business
• /
• v.2 no.1
• /
• pp.29-36
• /
• 2015

The paper examines the antecedents of acceptance of social networking sites in retail franchise and restaurant businesses. The success of retail franchise and restaurant business operators via social networking sites depends not only on organizational benefits but also on their behavioral intentions of using it. Three hundred and twenty four samples collected from South Korean retail franchise and restaurant employees are analyzed using factor analysis, structural equation model techniques and one-way analysis of variance. The results of the study identify the three constructs of organizational benefits, perceived tangible assets and perceived intangible assets as for important antecedents to accept social networking sites for their business use. Moreover, higher position employees tend to have more favorable perception of tangible assets and acceptance of social networking sites for their business use.

• Journal of the Korea Convergence Society
• /
• v.13 no.4
• /
• pp.63-70
• /
• 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
• /
• v.3 no.1
• /
• pp.130-143
• /
• 2012

Franchise store retailing is taking on ever greater roles in business and commerce in China. The diverse product range, small-batch order, high frequency and time-specific requirements inherent in retail logistics make it the most complicated of all categories of logistics. In franchise store retailing, expanding business scales make trans-regional development a trend. Without a well-functioning logistic system, the standardized delivery of products would be held back, impacting trans-regional development strategy and operational costs. Therefore, the efficiency of franchise store retailing largely depends on logistical efficiency. The integrated and streamlined management of franchise stores depends in large measure on their logistical centers. As such, logistical centers constitute the key link and bears on core competitiveness in franchise store retailing. This thesis begins with an analysis of the current developments and four basic logistical models of franchise store retailing in China, proceeds to summarize developmental trends as well as focal issues and proposes an efficiency enhancing plan.

• The Korean Journal of Franchise Management
• /
• v.12 no.2
• /
• pp.23-33
• /
• 2021

Purpose: The purpose of this study is to provide basic data such as development of sustainable support policies and performance management evaluation to support sustainable management of domestic franchises by deriving the sustainable growth cycle of domestic franchises. Research design, data, and methodology: This study is based on systematic review study. We combined search terms such as "Start-up", "Sustainability" and "Success" with four databases, RISS, KISS, e-article and DBpia and searched a total of 1,219 articles published by April 21, 2021. In the process, 35 studies were selected and analyzed after an expert review, excluding documents whose overlapping documents, gray zones (e.g., reports, conference presentations, etc.), degree papers, foreign language literature, and dependent variables were not related to the Sustainability factors. Using ERIS model, which is applied to research on the results of startup, and the franchise's growth cycle, which reflects the growth stage of franchises, we analyzed the factors behind the sustainability of franchise. Result: The results of the study are as follows. First, research on the sustainability of franchise has continued since 2009 in Korea, and has been conducted in various fields such as social welfare in addition to venture, start-up and management. Second, sustainability factors of franchise were analyzed from the ERIS performance model indicating the performance of venture, and the 68 subfactors were derived. Third, it is confirmed that there are important factors that affect the sustainable growth of franchise startups in each franchise's growth cycle. Conclusions: It is significant that through this study, we provided better understanding of the factors that sustain sustainability of franchises, policy suggestions, and presented the direction of future study. Theoretical suggestion is that the main reason for the continuous growth of franchise in each domestic franchise is based on the ERIS performance model. The practical implication is that the headquarters and Franchisor can use it to establish and evaluate performance indicators based on the business growth cycle. The results of this study are expected to be used as basic data for development and performance management evaluation of franchise start-up support policies to support the sustainable management of domestic franchises.

• The Korean Journal of Franchise Management
• /
• v.8 no.1
• /
• pp.5-18
• /
• 2017

Purpose - Although literature has established the relevance of entrepreneurial orientation(EO) in the performance of conventional firms, the constraining nature of franchise arrangement makes one wonders if the same relationship holds for companies operating under the business model. Research design, data, and methodology - Using Nigeria - a country with high potential for franchise growth - as a context, this study aims to explore the relevant entrepreneurial orientation skills exhibited by franchisees and show the extent to which these skills influence their business performance and intention to remain. 26 franchisees purposively selected from six local franchise brands in Nigeria were interviewed. Result and Conclusions - The three classic entrepreneurial orientation factors of innovativeness, proactiveness and risk-taking were found to have varying influence on franchisees' business outcomes. This study answers the calls for more in-depth understanding of the relationship between EO and firm performance generally and, franchise firm performance in particular. The value of this effort lies in the fact that it strengthens theory and updates literature on the subject. Based on the findings, specific recommendations are offered to help improve the practice of franchising in Nigeria.

• The Korean Journal of Franchise Management
• /
• v.14 no.3
• /
• pp.37-52
• /
• 2023

Purpose: This study is to investigate the causal relationship between franchise headquarters' franchise cost and franchise satisfaction and management performance, and to verify the structural relationship between franchise cost and corporate permanence. Research design, data and methodology: The data were collected from 200 medium-sized franchisees in Seoul and analyzed using confirmatory factor analysis (CFA) to test the validity of the measurement model and the structural equation model (SEM) to identify the impact of franchise costs on corporate performance with the Amos 28.0 program. Result: Franchise costs were found to have a negative effect on franchise satisfaction and corporate permanence. It was confirmed that franchise satisfaction had a significant positive effect on management performance and corporate permanence. Franchise costs had a sequential mediating effect on franchise satisfaction and management performance, which had a significant impact on corporate permanence. Conclusions: This study expanded the theoretical scope by applying the expectation confirmation theory to corporate transactions. In addition, the franchise headquarters proposes ways to create a culture of franchise business with trust by presenting appropriate franchise costs to improve management performance and corporate permanence through franchise satisfaction.

• The Korean Journal of Franchise Management
• /
• v.1 no.1
• /
• pp.65-85
• /
• 2010

The key success factors for Franchise Enterprise as a virtual company which is established based on franchise system are the competitiveness of sub-systems in franchise system such as franchisor, franchisee, vendor(supplier), and customer, and to sustain the symbiotic relationship among sub-systems. In this regard, evaluating franchise system is considered to be implemented in different contexts and methods comparing with extant evaluation system in franchise business which is more focused on the relationship between franchisor and franchisee. The flagship role of establishing franchise system is to be franchisor system, however, the symbiotic relationship among other sub-system including franchisee, vendor, and customer leads to successful Franchise Enterprise. The purpose of this study is to research existing evaluation systems for franchise business and to explore the model of evaluating franchise system, what is called, "Symbiosis Index".