• The Korean Journal of Franchise Management
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• v.5 no.1
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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.

• 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.

• Journal of the Korean Society of Food Culture
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• v.5 no.4
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• pp.455-462
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• 1990

The purpose of this study were to investigate relationships between the franchisors and franchisees in terms of management, satisfaction and cooperation, and to establish a model for improvement of the foodservice management structure of fast food franchise system. Data were collected from 4 hamburger and 7 noodle franchisors, and from 21 hamburger and 38 noodle franchisees. Surveyed chains were composed of 10 franchisor-owned units and 49 franchised units. The instrument used in this study was Liker type 5-scale guestionnarie. Hypotheses concerning relations between management practices by franchisor and satisfaction of franchisee, cooperation of franchisee were tested using path analysis. Unit management practices by franchisors were significantly different according to the operation style. Franchisor-owned hamburger chains rather than franchised noodle chains were better managed by franchisors in terms of QSC and management support. Management practices by franchisors in the whole showed a significant relationship with the satisfaction, cooperation, and the implementation of standardized recipes by franchisees. Franchisees' satisfaction had a significant positive relation with the cooperation and the implementation of standardized recipes. QSC management practices and management support by franchisors, had no direct relevance to the general cooperation of franchisees, and management practices in the whole had a little relevance to it, but franchisees' satisfaction in terms of QSC and the whole had a strong effect to their QSC Cooperation.

• Journal of the East Asian Society of Dietary Life
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• v.21 no.2
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• pp.284-297
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• 2011

The purpose of this study was to investigate whether a franchisor's influence strategies could affect a franchisee's relationship satisfaction, which in turn could affect their boundary spanning behaviors. The constructs of influence strategies included promise, recommendation, information exchange, request, threat, and legalistic plea. The boundary spanning behaviors were external representation, internal influence, and service delivery. The sample used for this research consisted of store owners or managers of franchisee restaurants in Korea. A total of 605 questionnaires were analyzed using SPSS/$PC^+$ and LISREL. Empirical research findings were that (1) promise, recommendation, and legalistic plea affected relationship satisfaction, and (2) relationship satisfaction influenced external representation, internal influence and service delivery. However, information exchange, request, and threat did not affect relationship satisfaction. Based on these findings, franchisors were recommended to provide motivations to franchisees if the former wants to receive help from the latter.

• Journal of Distribution Science
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• v.19 no.1
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• pp.17-26
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• 2021

Purpose: This research is to investigate the effect of the franchisee's basic psychological needs satisfaction on its business performance. Moreover, within the relationship between the franchisee's basic psychological needs satisfaction and its performance, the current study examined the mediating effect of work engagement and the moderating effect of the franchisor's support. Research design, data and methodology: 367 survey data were collected and analyzed using SPSS 22 and AMOS 22. For the assessment of goodness of fit of the models, fit indexes such as TLI, CFI, RMSEA were employed. Results: The results of the study are as follows: first, the franchisee's basic psychological needs satisfaction is positively related to performance; second, the franchisee's basic psychological needs satisfaction is positively related to work engagement; third, the franchisee's work engagement is positively related to performance; fourth, it is uncovered that the franchisee's work engagement mediates the relationship between basic psychological needs satisfaction and business performance; fifth, the moderating effect of the franchisor's support was insignificant. Conclusion: This study would like to contribute to the field of franchise performance, by re-assessing the significance of the individual's characteristics (of the franchisee) which has been ignored thus far. Furthermore, the limitations of the study and future research directions were discussed.

• Journal of Distribution Science
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• v.12 no.8
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• pp.43-54
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• 2014

Purpose - This study was based on a theoretical consideration of the structural relationship between the support and control of the franchisor and the satisfaction and strategic response (voice, loyalty, exit, neglect) of the franchisee. First, based on the preceding research, this study systematically organized the type of support and control of the franchisor. Second, the study examined the effects of a franchisor's support and control on the expectancy disconfirmation between affiliated franchisees' expectations before a franchise agreement and performance after operating an affiliated store. Third, the study looked into the effects of expectancy disconfirmation relating to a franchisor's support and control on an affiliated franchisees' general satisfaction. Fourth, this study examined the influence of the general satisfaction of a franchisee on affiliated franchisees' response strategies. Research design, data, and methodology - In this study, the population comprised the nation's franchisors, and the sample comprised franchisees conducting business in Seoul and Gyeonggi-do. A self-administered questionnaire was used; the author and examiner explained the study's parameters to the interviewees in advance, to lessen the rate of rejection of the answers and to maintain reliability. The author distributed 350 copies of the questionnaire and collected 327 copies (93.4%). The author removed 54 copies of the sample, as these copies belonged to franchisees that were not registered by the Fair Trade Commission and/or were thought to have either defects or inadequate answers. The author selected an effective sample of 273 copies to enter data and to do the statistical analysis. Results - Both a reliability analysis and a confirmatory factor analysis were performed to measure reliability and validity, and a structural equation model was used to conduct the hypothesis test and investigate the models. The hypothesis was tested (Table 5). The models had a suitable fit, for instance, χ² = 447.663(df = 212, p = .000), χ²/df = 2.112, GFI = .881, AGFI = .858, RMR = .083, RMSEA = .067, NFI = .932, and CFI = .961. The hypothesis test results were as follows. Hypothesis 1 was accepted (C.R. = -2.339, p = .019). Hypothesis 2 was accepted (C.R. = 15.213, p = .000). Hypothesis 3 was accepted (C.R. = -2.631, p = .006). Hypothesis 4 was accepted (C.R. = 16.271, p = .000). Hypothesis 5 was accepted (C.R. = 2.391, p = .017). Hypothesis 6 was accepted (C.R. = 5.777, p = .000). Hypothesis 7 was accepted (C.R. = 17.153, p = .000). Hypothesis 8 was accepted (C.R. = 24.746, p = .000). Hypothesis 9 was accepted (C.R. = -10.150, p = .000). Hypothesis 10 was accepted (C.R. = -12.124, p = .000). Conclusions - The research results showed that expectations for a franchisor's support and control had a significant influence on expectation disconfirmation in a negative way, whereas the performance of support and control were found to have a significant influence on expectation disconfirmation in a positive way. In addition, the expectation disconfirmation of support and control was found to have a significant influence on satisfaction of franchisees in a positive way. Generally, regarding the research on control, control is found to have a negative influence on the satisfaction of franchisees, but this study proves that control is found to affect it in a positive way through conformity.

• 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.

• Journal of Distribution Research
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• v.2 no.1
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• pp.87-114
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• 1997

The franchise form of business relationship remains both relatively unresearched and under-conceptualized despite its current and increasing importance as a business form in modern capitalist industrial society. A franchise is the synergistic combination of a franchisee and franchisor working together to better serve customers, and the success of the franchise system is a function of how well the franchisee and franchisor perform, together and separately. Given the interdependent nature of franchise relationships, the franchise participants need to understand each other as well as the dimensions and dynamics of their franchise relationship. The purpose of this study is to investigate the various factors relationship. The purpose of this study is to investigate the various factors which influence the development of coopertaive relationship in business format franchising system. Based on commitment theory and marketing literature, eight antecedent factors are identified and nine hypotheses are developed.

• Culinary science and hospitality research
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• v.13 no.3
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• pp.20-32
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• 2007

This study investigates the satisfaction with the supply-supplying system and the kitchen operation for the main menu in the food service industry, expecially in the franchisor-franchisee relation. In order to accomplish this purpose of the study, it examines the research on the franchise food industry in terms of research methods and surveys experimental research actually. The total 600 copies of survey had been gathered and 278 copies were used to get the purpose of this study. The SPSS 12.0 version was used to analyze the data. The finding suggests that pork is the very essential material of the supply-supplying system on all kitchen operation of cooking quality, management system, physical supplying system, prime cost and the food hygiene. Comparing results of mean statistic, pork shows much higher mean point than that of chicken on the kitchen operation efficiency. Also, the franchisees will give more satisfaction with main menu using pork than the menu using chicken on the recharter intention.

• Culinary science and hospitality research
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• v.14 no.3
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• pp.69-84
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• 2008

The franchise business in Korea, having a relatively short history compared to those of the advanced countries, disclosed many problems between franchisors and franchisees due to a rapid growth in number for the short period of time. Having recognized these problems, the Korean government, responding to social demands, established "The Fair Trade Practices Law for Franchise Business" to restrict unfair trade practices and to develop a healthier franchise business practice in general. In this study, we closely examined how the franchisees' understanding of the related laws would influence the franchisees' countermoves and satisfaction and the franchisor's reactions from the franchisees' standpoints. In conclusion, the franchisees show higher satisfaction in heteronomous changes achieved by the mutual agreement with the franchisors rather than in autonomous changes achieved by their active pursuits, as seen from the interrelation of the franchisors' reactions and the appropriateness of franchise agreements.