• Title/Summary/Keyword: Franchise system

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Joining Motive of Eating Out Franchise Management System and the Relation between a Rate of Satisfaction and Renewal of a Contract Intent (외식 프랜차이즈 운영시스템의 가맹동기 및 만족도와 재계약의도)

  • Jeon, Young-Jick;Won, Yoong-Hee
    • The Journal of the Korea Contents Association
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    • v.8 no.11
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    • pp.364-374
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    • 2008
  • The study demonstrably begins with the franchise system that found management of member store for office, the satisfaction that the relation between main office and member store and the difference with renewal of the contract. According to the result of the study that analyzed the difference in the rate of satisfaction that depended on individual peculiarities, the study found the statistical difference in a part of a category of business, a school career, a business career, a floor area, a selling level and presence of experience. The floor area and the selling level are distributed into 3 groups and the category of business, the school career, the business career and presence of experience are distributed into 2 groups. In addition, the result that analyzed the difference in the rate of satisfaction that depended on the motive found that improvements were distributed into 2 groups and there was the difference between the rate of satisfaction that depended on renewal of the contract intent.

Caffe Bene: Creating Values for Customers

  • Ahn, Kwangho;Yoo, Changjo;Kim, Youngchan
    • Asia Marketing Journal
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    • v.14 no.3
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    • pp.185-197
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    • 2012
  • Caffe Bene, one of the most notable coffeehouse chain brands in Republic of Korea, gives us some thought-provoking issues in terms of sustainable success. Despite harsh competition among various coffeehouse brands, Caffe Bene has been accomplished astonishing outcomes in domestic market and now ranked 2nd place in sales among the global coffeehouse franchise in 2010 and 2011. These achievements were possible mainly because Caffe Bene adopted distinctive shop design, maintained aggressive marketing strategy, developed new menu, and combined the unique Korean culture with ordinary concept of café to make its place attractive. However, since Korean coffeehouse market is getting saturated and consumers are becoming savvy about coffee, Caffe Bene needs to find a new solution to overcome growth stagnation. Besides, many experts pointed out that irrational increase in the number of stores might hurt its business in the aspect of managing distribution channel and providing consistent services. Also, customers of Caffe Bene have shown that it has to complement its critical weaknesses: inferior coffee taste and relatively high price for a cup of coffee. Especially, some people view that the company is shifting its high rental fee, interior cost and PPL marketing cost to consumers by charging high price for coffee. To get over the problems, Caffe Bene is currently using C/S Consumer Management System though experts are questioning about the efficacy because of the conflict between purpose of the system and the headquarters' plan. Present CEO Kim also announced that the company will complete its logistics system in the latter half of 2012 to provide stores with more high quality coffee beans to improve taste of coffee. Thus, in this case, we describe how Caffe Bene succeeded in Korean market and enumerate its key success factors. Also, we specify the long-term goals of Caffe Bene and introduce the current policies and strategies to show how the company is working on to achieve its ultimate goal. By reading and analyzing this business case, students could get useful insights regarding franchise management and think about issues on competing in a saturated market. Also, it would be worthwhile to generate creative solutions for the problems that Caffe Bene is now facing to broaden the practical perspective.

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The Effect of Social Network on Information Sharing in Franchise System (프랜차이즈시스템의 사회연결망 특성이 정보공유에 미치는 영향)

  • Yun, Han-Sung;Bae, Sang-Wook;Noh, Jung-Koo
    • Journal of Distribution Research
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    • v.16 no.2
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    • pp.95-118
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    • 2011
  • The purpose of this study is as follows. First, we investigate empirically the effects of social network properties such as social network density and centrality of a franchisee on its information sharing with various subjects such as the franchisor and other franchisees in the franchise system. Second, we examine exploratively if tie strength between a franchisee and its franchisor plays a moderating role on the relationship between social network properties and information sharing. The study model was established as shown in

    . We gathered 200 data from franchisees in Busan through a questionnaire survey and used 189 data for our purpose. To improve the quality of data, we selected respondents from the franchisees' owners or managers that had contacted often with their franchisor and other franchisees in the franchise system. Our data analysis began with reliability analysis, exploratory and confirmatory factor analysis, on the multi-item measures of social network density, social network centrality, tie strength, information sharing and control variables such as shared goals and ownership to assess the reliability and validity of those measures. The results were shown that the presented values satisfied the general criteria for reliability and validity. We tested our hypotheses using a hierarchical multiple regression analysis in four steps. Model 1 regressed the dependent variable(information sharing) only on control variables(shared goals, ownership). Model 2 added main effect variables(social network density, social network centrality) in Model 1. Model 3 added a moderating variable(tie strength) in Model 2. Finally, Model 4 added interaction terms between the main variables and the moderating variable in Model 3. We used a mean-centering method for the main variables and the moderating variable to minimize the multicollinearity problem due to the interaction terms in Model 4. Two important empirical findings emerge from this study. In other words, the effects of social network properties and tie strength on a franchisee's information sharing depend on subject types such as the franchisor and other franchisees in franchise system. First, social network centrality, tie strength, the interaction between social network density and tie strength and the interaction between social network centrality and tie strength all affect significantly a franchisee's information sharing with its franchisor. By the way, the interaction between social network centrality and tie strength has a negative effect on its information sharing while the interaction of social network density and tie strength has a positive effect on its information sharing. Second, both social network centrality affects significantly and directly a franchisee's information sharing with other franchisees in the franchise system. However, there does not exist the moderating role of tie strength in the second case. Finally, we suggest the implications of our findings and some avenues for future research.

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The effect of managerial characteristics of franchisor on the perceived justice of franchisee (가맹본부의 관리적 특성이 창업 가맹점주의 공정성 인지도에 미치는 효과)

  • Kim, Gil-Sun;Ahn, Kwan-Young
    • 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.

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The Impact of Perceived Restaurant Crowding on Satisfaction, Dine-Out Intention, and Dine-In Intention (레스토랑의 지각된 혼잡성이 소비자의 만족 및 행동의도에 미치는 영향)

  • Moo Sung HA;Ji Ah LEE;Jae Yeon PARK
    • The Korean Journal of Franchise Management
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    • v.14 no.3
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    • pp.1-16
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    • 2023
  • Purpose: In the post-COVID-19, many consumers still feel uncomfortable with crowding in closed spaces. This study investigates how non-crowding affects consumer satisfaction and restaurant visit intention. Research design, data, and methodology: The data were collected from 350 people aged 20 and above. A total of 347 respondents, excluding 3 unfaithful respondents, were analyzed using Smart PLS 4.0 program. Result: Both spatial and human crowding have significant effects on satisfaction. On the other hand, neither spatial nor human crowding directly affected dine-out intention significantly. In addition, spatial crowding was found to have a direct and significant effect on in-store dining intention, but human crowding did not have a direct and significant effect on in-store dining intention. It was found that satisfaction had a significant effect on both dine-out intention and in-store dining intension. Conclusions: This study has expanded the range of consumer behavioral intentions by applying a non-crowded environment (S) to the SOR theory. Also, Consumer behavioral intention was expanded by dividing visit intention into a dine-out and in-store dining intention. Therefore, we propose measures to minimize human crowding by introducing a system such as adjustment of store operating hours, reservation system, store opening time alarm system, and reduction of cooking time.

Study on Cost Management System for Small Restaurant Franchise (소형외식프랜차이즈 업체를 위한 원가관리시스템에 대한 연구)

  • Lee, Min Jung;Eu, Yoon Sun;Im, KwangHyuk;Kim, SeokHun
    • Proceedings of the Korean Society of Computer Information Conference
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    • 2013.01a
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    • pp.191-193
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    • 2013
  • 본 논문에서는 기존의 POS정보시스템을 이용하는 소형프랜차이즈 업체의 원가관리시스템을 개발하기 위해 표준화된 데이터모델을 개발하고, 사용하기 용이한 UI개발하는 방법론을 제안한다. 표준화된 데이터모델 개발을 통해 redundancy 없는 시스템을 개발하고 운영함으로써 개발 비용을 줄일 수 있으며, 사용하기 편리한 화면은 소형프랜차이즈 업체들의 이용성을 높일 수 있을 것이다. 가맹본사에서는 가맹점별 원가관리를 분석하여 가맹본사와 가맹점들은 투명한 점포경영이 가능하게 될 것이다.

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A Comparative Study of SERVQUAL and SERVPERF in Measuring the Fast Food Restaurants' Service Quality in Korea (한국 패스트푸드점 서비스품질 측정에 있어서 SERVQUAL과 SERVPERF의 비교 연구)

  • 장대성;박주영;김두복
    • Korean Management Science Review
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    • v.19 no.2
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    • pp.59-73
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    • 2002
  • There have been academic debates upon which measure is more desirable in measuring service quality between SERVQUAL and SERVPERF In addition, Korean fast food industry is rapidly growing due to increasing income and globalization. Our study tried to contribute to both academic and practical issues. We compared SERVQUAL and SERVPERF measures to determine which one is superior to measure service quality in Korean fast food franchise. We collected data from two branch restaurants of one American global fast food franchise system. Regression analyses resulted in that SERVPERF outperformed SERVQUAL. Furthermore, we compared the goodness of fit of the two structural equation models of SERVQUAL anO SERVPERF, respectively. The SERVPERF model showed a much better model fit than the SERVQUAL model did. Thus, we suggest that SERVPERF be used to measure service quality in Korean fast food industry.

A Study on the Types of Dispute and its Solution through the Analysis on the Disputes Case of Franchise (프랜차이즈 분쟁사례 분석을 통한 분쟁의 유형과 해결에 관한 연구)

  • Kim, Kyu Won;Lee, Jae Han;Lim, Hyun Cheol
    • 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.

The Effects of Franchise Customers' Acquisition Utility and Exchange Utility on Customer Loyalty and Customer Citizenship Behavior (외식 프랜차이즈 고객의 획득효용과 교환효용이 고객충성도와 고객시민행동에 미치는 영향)

  • Kim, Sang-Duck;Im, Hyang-Mi;Seo, Ki-Hong;Yoon, Ok-Sook;Kim, Jong-Hun
    • The Journal of Industrial Distribution & Business
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    • v.10 no.2
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    • pp.39-49
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    • 2019
  • Purpose - Customer loyalty and citizenship behavior are key success factors of franchise system. They make the management of franchisee more effective and efficient. Prior studies, however, mainly dealt with only acquisition utility of customer, such as perceived product/service quality and brand reputation to explain customer loyalty and citizenship behavior, which explains only on one side. We tried to investigate the effect of exchange utility of customer, such as relationship strength and psychological obligation together with the acquisition utility. In addition, we tried to investigate the relationship between customer loyalty and citizenship behavior in franchise context. Research design, data, and methodology - This study used data collected from the dining franchisee managers of 342 franchisors in South Korea. The franchisors consist of more than ten franchisees, the majority of which participated directly in the transaction with franchisor and have worked for more than six months. To test the hypotheses, the study used structural equation model analysis. Results - H1-1, 1-2, 1-3 predicted that acquisition utility would increase customer loyalty to franchisee. In support of H1-1, 1-2, 1-3, the results indicated that acquisition utilities such as perceived product value, perceived service value, and franchise brand reputation had positive effects on customer loyalty. H2-1, 2-2 predicted that exchange utility would increase customer loyalty to franchisee. In support of H2-2, the result indicated that psychological obligation had positive effects on customer loyalty like other acquisition utilities. However, H2-1 was not supported. Relationship strength had no significant effect on customer loyalty. H3 predicted that customer loyalty would increase customer citizenship behavior. In support of H3, the results indicated that customer loyalty had positive effect on customer citizenship behavior. Overall, the evidences generally supported the hypotheses. Conclusion - The results of the study show that not only acquisition utility but also exchange utility increases customer loyalty to franchisee and also show that customer loyalty increases customer citizenship behavior. Interestingly, however, relationship strength has no significant effect on customer loyalty. These results have two implications. The one is that increasing exchange utility can improve customer loyalty as acquisition utility can. The other one is that both of customer utilities can improve customer citizenship via customer loyalty.

The Effects of Franchisors' and Franchisees' Characteristics on the Performance and Recontract Intention in Bakery Franchise Industry (베이커리 프랜차이즈 가맹본부의 특성과 가맹점의 특성이 가맹점 성과와 재계약 의도에 미치는 영향)

  • Lee, Hye Young;Choi, Myeong Gil
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.12 no.3
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    • pp.177-190
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    • 2017
  • This study investigates the effects of franchisors' characteristics including brand reputation, training and product related support, franchisees' characteristics including store location and management on the performance and recontract intention of franchisees in bakery franchise industry. Also, this study examine the moderating effect of CEO experience of franchisees among the franchisors' and franchisees' characteristics, and performance. To empirically test these relationships, data were collected from 386 respondents who are franchisees in the bakery franchise sector. In the verification of hypotheses, the structure equation modeling(SEM) is used. The results of this study are as follows. First, franchisors' brand reputation, training support, and franchisees' locational factor have significant effects on the financial performance of franchisees positively. However, franchisors' product related support and franchisees' management of the store have not significant effects on the performance. Second, the performance of franchisees has positive effect on the recontract intention. Third, the moderating effect of CEO experience is only significant in the relationship between franchisors' training support and the performance. Based on the findings, this study suggest the importance of building a good brand image and superior training system for franchisors to improve mutual ongoing growth. Also, franchisors should determine whether nascent franchisee entrepreneurs have CEO experiences to further improve performance. If they do not have related experiences, both opening and ongoing training supports of franchisors and the efforts of franchisees towards learning are required. Finally, this study suggest that both franchisors and franchisees should accurately analyze the conditions of possible locations and establish strategies to select beneficial location before starting a franchise business.

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