• Culinary science and hospitality research
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• v.12 no.4 s.31
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• pp.46-62
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• 2006

This study researched unequal trades and analyzed the difference of legal relation control between the franchisor and the franchisee in foodservice industry. The purpose of this study was the preparatory process for basic data to establish a statute law for the franchisee in foodservice industry. We made up a questionnaire for 53 franchisees in March 2004 and analysed spss 10.0. This result was as follows. First, the special office was needed for publicity activities of law related franchise and the investigation of a right in the written contract for a franchisee. Second, there should be the conformation and objective criteria of monopolistic goodwill in legal proceedings. Third, the larger the scale of franchisees was, the less efficiently the conflicts between franchisors and franchisees were controlled.

• Journal of Distribution Science
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• v.12 no.4
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• pp.11-22
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• 2014

Purpose - The domestic franchise industry has made significant contributions to industry such as investment, employment, and community economy development, facilitating growth potential. The franchise industry provides management knowhow transfer between parent companies and franchisees as per contracts addressing use of business signs, franchisees' independent position, franchisor support, and royalties to be paid to the franchisors. However, many franchisors lack management knowhow and provide insufficient support because of poor control of franchisees and not having a systematic approach to support. This results in dissatisfied franchisees and failure to establish long-term relationships. Few studies have examined relational commitment and/or re-contract intention by support resources between franchisors and franchisees, despite a considerable output of theories and studies of the growth of the franchise industry. The purpose of this study, therefore, was to examine the effects of the ability to provide resources on relational commitments and re-contract intention, and to suggest causal relationships and implications. Research design, data, and methodology - The subject was domestic franchisors registered with the Association of Franchise with more than 50 franchisees. Franchisees under contract for 2 years and considering re-contract of their franchise 2 years later were used. The subjects totaled 300 franchisees in Seoul. A questionnaire survey was used to investigate the subject of franchisees' concessions during the 10 days from November 21, 2013 to November 30, 2013. After excluding 16 surveys with poor answers, 284 responses were finally used. Four areas and 44 questions were used. A nominal scale was used for four common characteristics questions including gender, ages, educational background, and franchise managing time. Questions regarding ability, relational commitment, and re-contract intention made use of a Likert 5-point scale. Data coding and data cleaning were used. SPSS 18.0 was used as follows. First, frequency analysis was done to investigate demographic characteristics. Second, exploratory factor analysis was done to verify validity of testing tools, and Cronbach's α coefficient was used to verify reliability. Third, correlation analysis and multiple regression analysis were done. An exploratory factor analysis was done to verify validity of concepts. A correlation analysis was done to test relationships between the variables, and multiple regression analysis was done to verify franchisor's ability, franchisees' relational commitment, and re-contract intention. Results - The following were the outcomes. First, store operation management, finance operation management, and human resource management affected the calculated bond. Second, store operation management and finance operation management affected the emotional bond. Third, store operation management, finance operation management, human resource management, and marketing management affected the prescriptive bond. Fourth, calculated bond and prescriptive bond had an effect on re-contract intention. Conclusions - As stated above, in franchise management, parent companies' offer and instruction of core competence to their franchisees as an information resource could improve the relational bond by helping them grow together through the resource sharing. Consequently, core competence factors were promoting factors that could improve franchisees' re-contract intention for a long time.

• 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".

• The Korean Journal of Franchise Management
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• v.12 no.4
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• pp.13-23
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• 2021

Purpose: This study aimed to derive clues for the franchise industry to overcome difficulties such as various legal regulations and social responsibility demands and to continuously develop by analyzing the research trends related to franchises published in Korea. Research design, data and methodology: As a result of searching for 'franchise' in ScienceON, abstracts were collected from papers published in domestic academic journals from 1994 to June 2021. Keywords were extracted from the abstracts of 1,110 valid papers, and after preprocessing, keyword analysis, TF-IDF analysis, and topic modeling using LDA algorithm, along with trend analysis of the top 20 words in TF-IDF by year group was carried out using the R-package. Results: As a result of keyword analysis, it was found that businesses and brands were the subjects of research related to franchises, and interest in service and satisfaction was considerable, and food and coffee were prominently studied as industries. As a result of TF-IDF calculation, it was found that brand, satisfaction, franchisor, and coffee were ranked at the top. As a result of LDA-based topic modeling, a total of 12 topics including "growth strategy" were derived and visualized with LDAvis. On the other hand, the areas of Topic 1 (growth strategy) and Topic 9 (organizational culture), Topic 4 (consumption experience) and Topic 6 (contribution and loyalty), Topic 7 (brand image) and Topic 10 (commercial area) overlap significantly. Finally, the trend analysis results for the top 20 keywords with high TF-IDF showed that 10 keywords such as quality, brand, food, and trust would be more utilized overall. Conclusions: Through the results of this study, the direction of interest in the franchise industry was confirmed, and it was found that it was necessary to find a clue for continuous growth through research in more diverse fields. And it was also considered an important finding to suggest a technique that can supplement the problems of topic trend analysis. Therefore, the results of this study show that researchers will gain significant insights from the perspectives related to the selection of research topics, and practitioners from the perspectives related to future franchise changes.

• The Journal of the Convergence on Culture Technology
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• v.8 no.4
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• pp.347-353
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• 2022

In the restaurant industry, start-ups are active due to high demand from consumers and low entry barriers. However, the restaurant industry has a high closure rate, and in the case of franchises, there is a large deviation in sales within the same brand. Thus, research is needed to prevent the closure of food franchises. Therefore, this study examines the factors affecting franchise sales and uses machine learning techniques to predict the success and failure of franchises. Various factors that affect franchise sales are extracted by using Point of Sale (PoS) data of food franchise and public data in Gangnam-gu, Seoul. And for more valid variable selection, multicollinearity is removed by using Variance Inflation Factor (VIF). Finally, classification models are used to predict the success and failure of food franchise stores. Through this method, we propose success and failure prediction model for food franchise stores with the accuracy of 0.92.

• The Korean Journal of Franchise Management
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• v.3 no.2
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• pp.39-54
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• 2012

Franchise system in Korea has been developed in different way compared with American way of franchising based on mutual contract and intellectual property context. Korean franchising is mostly based on product distribution franchise concept rather than business format franchise in which franchisor makes revenue sources from providing their products as much as possible thru group purchasing and logistics rather than receiving royalty. Many franchise enterprises from Korea drive to enter into global franchise market based on the successful performance of Korean way of franchising. Korean enterprises are required to prepare completely for research and survey regarding local culture, custom, way of life and legal matters etc. when entering into global franchise market to gain a substantial performance. CaffeBene recently entered into American franchise business with success, and many other Korean franchise enterprises have a deep interest in proceeding with global franchise business modeling CaffeBene case. There is no Korean franchise enterprise in United Kingdom in which service franchise area in particular with personal service is considered to become a promising and potential franchise business and many people show a great interest in Oriental foods and beverages with well-being trend. Korean franchise enterprises have now access to United Kingdom easier because IT industry including internet of the country have been developed by leaps and bounds since London Olympic in 2012. The purpose of this study is to suggest key success factors and basic strategy such as situation analysis, selecting business format, and marketing strategy for successful launching of franchise business in United Kingdom.

• Journal of Arbitration Studies
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• v.14 no.2
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• pp.173-198
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• 2004

Recently in Korea, franchise system has been specially used in the distribution industry. However, it also brought up many problems caused by various issues between franchisor and franchisee. The purpose of this article is to review recent trend of the franchise transaction contracts and resolution of the disputes in Korea. And to expand to use of ADR(Alternative Dispute Resolution) system as a practical dispute settlement procedure including mediation and arbitration. Arbitration means a procedure to settle any dispute in private laws, not by the adjudication of a court, but by the award of an arbitrator or arbitrators, as agreed by the parties. Arbitration agreement is a prerequisite for either party to a dispute to commence arbitral proceeding and may be in the form of a separate agreement or in the form of an arbitration clause in a contract and shall be in writing.

• Korean Journal of Human Ecology
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• v.21 no.2
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• pp.269-284
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• 2012

The main purpose of this study was to investigate factors affecting performance of casual wear franchise stores including franchiser support and social network between owners/managers. The study included the franchise stores of 55 casual wear brands located in Seoul, Incheon and Gyeonggi-do. In each store, one manager, owner or staff member with management responsibility was asked to fill out a questionnaire. A total of 184 questionnaires were collected with 165 used in the final analysis. The results showed that franchiser support consisted of educational support, marketing support and customer support. Path analysis indicated that only the educational support had a significant influence on the franchiser-franchise relationship, and in turn, the franchiser-franchise relationship positively influenced customer performance. Marketing support did not have a significant influence on the franchiser-franchise relationship, but did demonstrate a direct influence on customer performance. Social networks positively influenced customer performance, and there was significant a correlation between regions and social networks on customer performance. Sales performance was significantly influenced by customer performance.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.10
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• pp.444-455
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• 2018

This empirical study examined the relationships among emotional labor, social support, and organizational commitment of franchise food service industry employees, and analyzed the mediating effects of social support from the fellow and director on the relationship between emotional labor and organizational commitment. A total of 268 employees in the franchise food service industry, such as fast food, chicken, and coffee in Seoul, were analyzed by frequency analysis, reliability analysis, correlation analysis, confirmatory factor analysis, and structural equation model analysis using the SPSS Program. The results of verifying the research hypotheses could be summarized as follows. First, the surface emotional labor of franchise food service industry employees had negative effects on the organizational commitment. Deep emotional labor had significant positive effects on the organizational commitment, and fellow and director support had significant positive effects on the organizational commitment. Second, the social support from the fellow and director had partially mediating effects on the relationship between emotional labor and organizational commitment. This suggests that emotional labor and social support play essential roles in enhancing the organizational commitment of franchise food service industry employees.

• The Korean Journal of Franchise Management
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• v.7 no.2
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• pp.15-25
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• 2016

Purpose - This study examined the effect of perceived corporate social responsibility (CSR) on cognitive trust, emotional trust, and loyalty among using Korean food buffet franchises. The result of this study is expected to provide practical implication to industry practitioners in expanding their understanding of the CSR effect in the marketing perspective. Research design, data, and methodology - The data was collected from a panel of online research companies who are over 20 years old and dined in at Korean style buffet franchise outlets more than five times. A total of 370 samples were used after eliminating outliers and missing data. the data were analyzed SEM with SPSS and AMOS. Result - The result of this study showed that: 1) social CSR activities have an effect only on emotional trust; 2) food-related CSR activities influence both cognitive trust and emotional trust; and 3) both cognitive trust and emotional trust have a significant impact on customer loyalty in Korean style buffet franchises. However, it is important to note that this study found no significant causal impact from environmental CSR activities. Furthermore, this study found that food-related CSR activities have the greater influence on the cognitive trust, and cognitive trust is more influential on the customer loyalty than the emotional trust. Conclusions - Based on the findings, this study provides practical implications to industry practitioners. First, that CSR has a significant impact on customer trust suggests that Korean style buffet franchises should focus on CSR activities to improve customer trust. Second, that food-related CSR activities have the greater influence on the cognitive trust implies that industry practitioners should reinforce food-related CSR activities as a marketing tool to enhance emotional trust and the overall credibility of their franchise. Third, we need to find CSR measures at the social level that can secure emotional trust so that customer loyalty can be formed. Fourth, Korean food buffet franchise food service companies should concentrate their efforts on CSR activities at food and social level among the three dimensions suggested by researchers in order to form customer loyalty. For next study, perceived concept of CSR on individual customer should be examined.