• The Korean Journal of Franchise Management
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• v.13 no.4
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• pp.1-12
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• 2022

Purpose: In 2020, the franchise industry accomplished a significant growth compared to the previous year, as the number of franchise companies increased by 9.0% while the number of franchise brands increased by 12.5%. Despite growth in size, the Korean franchise industry underwent many negative incidents, such as franchise ownership sales to private equity funds, that led to deterioration of businesses. From this point of view, this study aims to make various proposals to help policy makers develop franchise industry policies by analyzing trends of the current and previous presidential administrations' franchise policies and regulations using newspaper articles. Research design, data and methodology: A total of 7,439 articles registered in Naver API from February 25, 2013 to November 29, 2021 were extracted. Among them, 34 unrelated video articles were deleted, and a total of 7,405 articles from both administrations were used for analysis. The R package was used for word frequency analysis, word clouding, word correlation analysis, and LDA (Latent Dirichlet Allocation) topic modeling. Results: The keyword frequency analysis shows that the most frequently mentioned keywords during the previous administration include 'no-brand', 'major company', 'bill', 'business field', and 'SMEs', and those mentioned during the current administration include 'industry' and 'policy'. As a result of LDA topic modeling, 9 topics such as 'global startups' and 'job creation' from the previous administration, and 10 topics such as 'franchise business' and 'distribution industry' from the current administration were derived. The results of LDAvis showed that the previous administration operated a policy based on mutual growth of large and small businesses rather than hostile regulations in the franchise business, whereas the current administration extended the regulation related to franchise business to the employment sector. Conclusions: The analysis of past two administrations' franchise policy, it can be suggested that franchisors and franchisees may complement each other in developing the Fair Transactions in Franchise Business Act and achieving balanced growth. Moreover, political support is needed for sound development of franchisors. Limitations and future research suggestions are presented at the end of this study.

• 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.

• The Korean Journal of Franchise Management
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• v.4 no.1
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• pp.91-112
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• 2013

In modern society the Lubricants is widely used everyday life such as transportation and industrial plant. This study aims to provide an overview of the distribution channel of Lubricant and it's history of development in Korea. For this purpose, this study explores the basic knowledge and it's characteristics of lubricant which is essential goods for all transportation including cars and for all industrial facilities to produce their own products. According to development of industry and economic grow, the distribution channel also expended and become more complicated. Especially as Lubricants has both characteristics of consumer products and industrial products, the distribution channel is also developed different ways. I will attempt to summarize the differences between each distribution channels including franchise network of automotive repair shop and issues on role and responsibility of manufacturer and distributor. And then I hope to suggest the improvement of distribution channel.

• Journal of Distribution Research
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• v.4 no.1
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• pp.161-183
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• 1999

The purpose of this paper is to investigate the fastfood franchise distribution channel in the Pusan area. To achieve the research objectives, hypotheses were developed through a literature review and an experimental methods wee employed. The major findings of this study are as follow; (1) franchiser's control and autonomy positively affected the affective commitment of franchisee. (2) franchisee's affective commitment positively affected the performance. (3) franchiser's control positively affected the performance of franchisee. Therefore, the efficient franchise system and relationship are required in the Korean distribution channel.

• Journal of Distribution Science
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• v.12 no.3
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• pp.43-53
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• 2014

Purpose - This study suggested a practical model for super supermarkets (SSMs) and small- and medium-sized stores to grow together. Super centers expanded their business. However, after the retail distribution law was revised in 2009, mutual cooperation between large and small enterprises resulted in social issues and people raised the issue of profitability. Research design, data, and methodology - This study investigated cases of regulation over distribution in Japan, France, and other countries to reveal implications and recommendations. Results - This study demonstrated how SSM and middle and small supermarkets could grow together by franchising and using cooperative society law. Franchising was a mutual growth model whereby the franchiser provided franchisees with large enterprise systems and utilities while franchisees could provide the franchiser with local information. They could thus build trust in each other to facilitate a mutual growth model. Further, the voluntary franchise system's model facilitated the mutual growth model. Conclusions - This study demonstrates that the franchise system and cooperative society could constitute an ideal model whereby large enterprises and middle and small stores could rely upon each other and grow together.

• KDI Journal of Economic Policy
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• v.44 no.1
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• pp.49-75
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• 2022

This paper analyzes how franchise contract conditions are influenced by business structures as well as how contract conditions affect producer surplus by utilizing Korean franchise Information Disclosure Documents for the years 2014-2016. We find that franchise fees tend to increase in line with increases in the numbers of direct stores or the business period. Accordingly, it would be reasonable to check whether the franchise fee is excessive compared to the amount of reputation capital rather than to criticize the absolute level of the franchise fee. Regarding royalty contracts, the larger the discount in the raw materials purchase is, the higher the initial royalty is. Although this appears to be a royalty discount, it can be a means of inducing a raw materials purchase contract by initially setting a high royalty rate and then lowering it after the purchase contract is signed. Concerning the effect on producer surplus, the results show that an increase in franchise fees and royalties negatively affects the franchisee's operating profits but positively affects those of the franchisor's, leading to conflicts over the distribution of economic value added. Based on the findings here, we propose various policy recommendations, specifically reinforcing the contents in the Information Disclosure Document, further activating fixed-rate royalties, and strengthening the qualifications of franchisors when recruiting franchisees.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.11 no.6
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• pp.1991-1996
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• 2010

The Korean restaurant franchise business is continuing to grow along with economic growth. Moreover, there are some Korean restaurant franchise enterprises that have managed to enter overseas markets as well, and which are unfolding a strategy for success by leveraging marketing activities that consider the tastes of the respective localities and their consumers' characteristics. This research conducted a comparative analysis of 'Nolbu'and 'Mister Pizza' both considered successful franchises, to identify the CSF(Critical Success factors) of the Korean restaurant franchise business. The results of the research demonstrate the critical success factors, including: efforts such as effective marketing; effort to return part their profits to the community; structured and scientific restaurant management; an effective logistics and distribution system and differentiation against other brands.

• 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 KIBIM
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• v.8 no.3
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• pp.1-11
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• 2018

Gentrification is appearing in various areas. Especially commercial gentrification, the value of property is rising and it means the change of commercial sphere in revitalizing the underdeveloped commercial. In this study, Identify the process of increasing the franchise rate, which is changing gradually in commercial areas. We analyze prior studies on gentrification and franchise. Identify changing of land use distribution in Samcheong-dong area and analyze franchise change process. As a result of analyzing the changing of land use in Samcheong-dong area, the number of houses and other uses has continued to decrease. In the case of franchises, it increased sharply and in the case of general commercial, it steadily decreased. Looking at analyzing the franchise change process in Samcheong-dong area, In the franchise change process, there is very little change in land use from residential and other uses to general commercial. Representative spaces that show the process of franchise change are around the three-way streets, around the community service center and around the police station.

• Journal of the Korean Geographical Society
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• v.44 no.4
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• pp.532-543
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• 2009

The foodservice franchise is preferred by the founders who inaugurate a business enterprise, because it is not difficult to convert into money more than other private enterprise. The success or failure of the foodservice franchise depends 80 percent on its location. Therefore, this research aimed to study the location factors of the first shops of foodservice franchise in Seoul through the analyses of nearest neighborhood effect and statistical relationship between variables. According to there results, the location characteristics of the first shops of foodservice franchise are summarized as in the following three items. First, the spatial distribution pattern of the first shops is a clustered type. Second, the first shops relate to the 15 variables which are the number of financial facilities, the number of business service offices, and the number of hotels and restaurants, etc. Third, the main location factor of the first shops is the number of financial facilities. In conclusion, it is estimated that Gangnam-gu and Jung-gu might be good for the location of the first shops of foodservice franchise in Seoul, because these two places have many financial buildings.