• The Korean Journal of Franchise Management
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• 제5권1호
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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 Science
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• 제11권8호
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• pp.25-30
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• 2013

Purpose - Foodservices have grown to over 60% of the franchise industry. However, despite reaching this high level, the foodservice franchise industry is experiencing severe ups and downs. While factors such as expansion by franchises and the entry of large multinational firms are causing this imbalance, the more serious problem faced by franchisees is the lack of know-how and correct operating procedures. Franchise headquarters should advise franchisees on important matters such as food ingredients, interior design, tableware, and fixtures. However, even though franchise headquarters have the ability to impart such management know-how, this is often a neglected area. Research design, data and methodology - This study was conducted in an industrial environment to present suitable competitive alternatives for foodservice franchises. Empirical analysis was conducted using a sample of 232 people with experience in targeting customers. The main purpose of this study is not to identify and analyze the factors affecting customer satisfaction. Customers of the Food Service Industry to invite contacts until departure for the service flow by identifying the expectations and allow this area by analyzing the resulting measures to enhance the competitiveness has presented. Results - Actual results contact factors affecting the quality of service on customer satisfaction was a significant influence. However, the end of this analysis, the actual customer satisfaction directly affects the quality of service that is only important factor can commit mistakes. Relatively large impact on customer satisfaction, which is relatively independent of the quality factor should be a review of zone of tolerance. In this study, eating phase relative to contact the service customer satisfaction was the most influential. The results, however, zone of tolerance for an area in the waiting and ordering dissatisfaction factors are appearing. And in the course of these services outside the zone of tolerance area is unsatisfactory evaluation is being done. Conclusions - After all, Foodservice, the contact service management for zone of tolerance the top priority should be can be seen. Foodservice contact first in the case of service quality factors caused by the continuous flow of services, so this step-by-step identification needs to be clearer. This, of course, to distinguish between the actual per unit of activity appears to be more difficult to follow, for it seems to need a lot of future complementary. Next is the assessment of customer service quality. Customers remember the experience for the services of a real contact through the assessment and service evaluation clearly emerge as the expected level can be difficult. However, this situation is controlled by the test method cannot be avoided unless there is no limit to the number of leave. Despite these limitations, the next step to contact a service evaluation and analysis have to continue to refine and thereby franchisees for the operation of the store in terms of practical know-how required to provide to the office believe.

• Journal of the Korea Society of Computer and Information
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• 제24권11호
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• pp.245-254
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• 2019

In this paper, We analyze the effect of professionality of franchise education program on the satisfaction, work efficiency and business performance, to find how to develop education program which is considered as important in franchise management and to propose ways of sustainable operation of franchise education program. In this study, we carried out survey for 224 users who have competed franchise education programs. We divided the professionality of franchise education program into education instructors, education contents, education environment and education methods through precedent study. For the verification of study hypothesis, we used single regression and multiple regression analysis to verify the relationship between variables. The core study results are as follows. First, professionality of franchise education program is positively related to the satisfaction. Second, professionality of franchise education is positively related to work efficiency. Third, satisfaction affects work efficiency. Fourth, satisfaction and work efficiency have positive effect on business performance. Based on these study results, we found that if education program suitable for the industry and subjects from instructors to education method is developed to improve the professionality of franchise program and continuous communication and improvement is made to increase satisfaction and work efficiency, the franchise education program will create good results.

• International journal of advanced smart convergence
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• 제12권3호
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• pp.163-167
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• 2023

The restaurant industry is an industry with low entry barriers, and furthermore, it is an indispensable industry in life. However, for the restaurant industry, it is necessary to start a business considering many factors. In particular, the comparative group for each restaurant industry is different, and the commercial area analysis should be analyzed differently. Moreover, counseling for restaurant start-ups is still sticking to how to start a restaurant by meeting with each franchise supervisor or counselor. Therefore, a restaurant start-up chatbot is needed for prospective restaurant founders, and a food tech chatbot is needed to collect basic data. Therefore, in this study, factors for restaurant start-ups were divided into youth, preliminary start-ups, menus, taste, and food. In the case of restaurant start-ups with low entry barriers, it was confirmed as the most preferred start-up by young people. However, indiscriminate restaurant start-ups not only increase the closing rate but also have a significant impact on household debt, so accurate consulting should be used to lower the closing rate and increase the success rate. Furthermore, theories and measures for food technologies such as chatbots should be further developed to obtain accurate information on franchise start-ups.

• The Korean Journal of Franchise Management
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• 제3권1호
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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.

• The Korean Journal of Food And Nutrition
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• 제7권1호
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• pp.36-44
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• 1994

In this paper, we surveyed the actual utilization condition of chain stores of franchise systems and the customers' consciousness on chain shops and non-chain restaurants. The survey was conducted on 459 people either living or working in Pusan area and aged more than 4th grade in elementary school without sex distinction. The data analyses were made by way of frequency, percentage, Spearman rank correlation and Chi-square using dBastat 1.0 package of PC. The results of the survey are as follows. The survey indicates that respondents have the most experience of visiting chicken, hamburger, and pizza chain shops. Although the survey on the degree of preference between chain shops and non-chain restaurants indicates that men prefer non-chain restaurants and women prefer chain shops, the results are not so significant to conclude that there is a preference regardless of sex (N. S.): By ages, students and young group prefer chain shops and the aged group prefer non-chain restaurants (p< 0.05). The survey indicates that chain shops are proffered because of sanitary, quality, taste of foods and are not proffered because of simple menu and expensiveness. The survey indicates that non-chain restaurants are preferred because of distinctive taste of each restaurant and comfotableness, and are not proffered because of unsanitary and unkindness.

• Journal of Distribution Research
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• 제17권3호
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• pp.1-24
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• 2012

Franchises have recently emerged as the most rapidly expanding industry positioned to create a large impact in the domestic economic. The Chinese franchise industry developed rapidly in the period prior and subsequent to WTO accession with more than 50% of new franchises brands emerging since 2000. M&A transactions in the Chinese franchise industry have progressed actively. In the period from 2005-2007, due to the wholesale and retail market opening in accordance with the guidelines laid forth within the MOU by the WTO the Chinese franchise market is now the largest market in the world all despite a short history of only 20 years. The amount of franchise market research on China is disproportional to its current size and development potential. Beginning in the 1990s, market research conducted by the International Franchise Association focused on emerging markets in Eastern Europe and China. While the research dealt with the Chinese investment environment, it insufficiently explained the market region and cultural environment. The purpose of this research is (i) to investigate the determinants of the performance of franchise systems in China and (ii) new contract renewals based on performance factors. This study will complement existing research in terms of the franchisee perspective. This study may also prove of the benefit to the franchise companies entering the Chinese franchise market enabling them to develop an effective strategy. This study shows that support, incentives, and system standardization by franchisor yielded a positive effect on management performance. This is consistent with previous studies by Shin (2000) and Kim (2008) targeting Korean franchises. Therefore, in the Chinese market, the franchisor must focus on support, incentives, and system standardization rather than concentrate only on the recruitment of franchisees in order to improve revenue. Hypotheses regarding franchisor control have been dismissed in existing research, in the opinion of this study, due to their complexity and inability to control the merchant as a one-kind-assessment-standard. Our findings show that the franchisees' financial condition, management ability and entrepreneurial spirit, among franchisee's characteristics, have a positive effect on franchisor's business performance and satisfaction for the franchisee. This is consistent with previous studies on headquarters' management performance of Lussier (1996), Heo and Jang (2008), and franchisees' financial condition, management ability and entrepreneurial spirit effect on franchisor's satisfaction of Weaven and Franzer (2007), Kim (2009), Han (2009), and Yoon etc. (2008). Therefore, when permitting a franchisee, financial condition, management ability, entrepreneurship of the franchisee should be carefully considered. Among relational factors between franchisor and franchisee, trust has the positive influence on the management performance of the franchisor while conflict has a negative effect. However, trust, commitment and conflict factors have been shown not to have any impact on the satisfaction of the franchise headquarters. This result is consistent with the previous studies of Pavlou and Ba (2000), Morrison (1999), Weaven and Frazer (2007), Kim and Park (1994), Sohn (2007) which show that trust between franchisor and the franchisees have a positive effect and that conflict has a negative impact on franchisor's management performance. Other factors causing a negative effective on the franchisor's management performance are a rapid environmental changes and uncertainty in the business. This is consistent with Campbell et al (2007), Kim and Kim (2009), Han and Baek (2008). Finally, the high management performance and satisfaction of the franchise headquarters has a positive effect on the intention of franchise renewal. In the case of large markets such as China, the franchisor's strategy and the role is very important. In this study, we also investigated the characteristics of franchisor and franchisee, relationship, and environmental uncertainty affecting on the management performance and satisfaction of franchisor. Recently, Korean franchises are attempting to enter foreign markets through the rise in popularity of Korean culture and entertainment commonly referred to as the Korean wave. This study provides recommendations for Korean franchises intending on entering the Chinese market. First, in order to achieve stable profits, the franchise corporation needs to support the operation of the individual franchisee through incentives and standardization of services. Second, because trust between the franchisor and franchisee has a positive effect on management performance, on-going discussion and cooperation is necessary to reduce the level of conflict.

• The Korean Journal of Franchise Management
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• 제9권4호
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• pp.7-19
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• 2018

Purpose - Recently, global management in Korea franchise industry is becoming an important keyword. As an important branch market, Chinese market plays a major role not only by making experience of the competitiveness among global brands which offers a foothold to become a top global brand, but also by actualizing an economies of scale in production, sales, etc. Therefore, it is necessary to identify key successful factor influencing customer evaluation and responses of Korean franchise restaurant targeting Chinese consumers in China context. The purpose of this study is to examine the effects for Korean franchise restaurant selection attributes on perceived value, customer satisfaction and customer loyalty in Chinese context with SmartPLS 3 and Artifical Neural Network(ANN). Research design, data, and methodology - For these purposes, the authors developed several hypotheses. A questionnaire survey was conducted on the panel of online survey companies for Chinese consumers who have visited Korean franchise restaurants. A total of 404 data were analyzed using structural equation modeling(SEM) and artifical neural network(ANN) with SPSS 22.0 and SmartPLS 3.0. Result - The findings of this study are as follows: First, the alternative model findings show that facilities & atmosphere, employee service, and menu influenced on utilitarian value, customer satisfaction, and customer loyalty directly. Second, employee service influenced on customer satisfaction. Third, menu influenced on hedonic value. Fourth, brand reputation influenced on utilitarian value. Fifth, hedonic value increase customer satisfaction and customer loyalty. Sixth, hedonic value increase customer loyalty. Seventh, customer increase customer loyalty. And, the ANN analysis shows that utilitarian value is the first most important factor influencing customer satisfaction, followed by hedonic value, facilities & atmosphere, menu and employee service. However, the ANN analysis shows that customer satisfaction is the first most important factor influencing customer loyalty, followed by utilitarian value, hedonic value, brand reputation, menu, and employee service. Conclusions - This study provides practical implications for enhancing customer satisfaction and customer loyalty by applying the ANN technique that complements the limitations of the linear structural relationship analysis using the proposed model and the alternative model. In other words, the SEM-ANN model provides guidelines on how Korean franchise restaurants should formulate facilities & atmosphere, employee service, and menu mix strategies in China. In addition, ANN 's analysis shows that restaurant brand reputation plays a pivotal role in increasing customer loyalty. The fact suggests that Korean franchise companies should establish their domestic brand reputation prior to their entry into overseas markets such as China.

• The Korean Journal of Franchise Management
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• 제11권1호
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• pp.7-17
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• 2020

Purpose - As the competition in the foodservice franchise industry and the market becomes fierce and the entry barrier is lowered, the foodservice franchisor and franchisees strive to increase their competitive advantage in the market. Therefore, the franchisor and franchisees use experience management strategies to enhance the positive experiences of customers visiting the stores. In this regard, this study examines the effects of customer-oriented activities (physical-, social-, health-, and service-oriented activities) on utilitarian and hedonic values, and loyalty using stimulus-organism-response (S-O-R) model and value-expectancy theory. Research design, data, methodology - The data were collected from panels of online survey company, who visited a foodservice franchisee within last month. The survey was conducted for about 15 days from March 7, 2019 to March 21, 2019, and about 3,500 e-mails and messages were distributed to ask for the survey. A total 412 responded and completed the questionnaires. Of the 412 completed questionaires, 12 were discarded due to missing and misinformation data and 400 were retained for further data analysis. Results --The results showed that social oriented activities, health oriented activities, and service oriented activities had positive effects on hedonic value, while physical oriented activities did not have a significant effect on hedonic value. Health oriented activities and service oriented activities had positive effects on utilitarian value, while physical oriented activities and social oriented activities had no significant effects on utilitarian value. Hedonic and utilitarian values also have a positive effect on loyalty. Conclusions - First, food service franchises should provide services and menus in consideration of the health of customers. When a customer visits the store, franchisee should provide more health-oriented food or materials and clean and comfortable conditions so as not to threaten the health of the customer. Second, the food service franchise must build a service-oriented system. Foodservice franchisor need to provide continuous service training not only to the franchisees, but also to the employees of the franchisees. Third, franchise should design a store where customers can form social exchanges through providing various information exchange to customers and making the store as a local community center.

• Culinary science and hospitality research
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• 제12권2호
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• pp.18-38
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• 2006

We studied franchisees’ answers to the questionnaires to know their selective motives and criteria, their types and the reliability of a franchisor in the food-service industry. Then we showed the basic data about the selective criteria of a sound franchisor. The result of this study was as follows. First, we need a specialist and a department to present a financially sound franchisor. Second, we must determine the criteria of franchise fee, royalty and the other items on payment for the franchisor. Third, the alternative plan to trust the franchisor was needed for a large-scale franchisee.