• Culinary science and hospitality research
• /
• v.6 no.2
• /
• pp.315-330
• /
• 2000

The development of foodservice franchise is inevitable in the developmental process of domestic foodservice industry and it has been led by some big enterprises and foreign brands, but foodservice franchise of a new and differential form will be rapidly developed. The success of franchise can be resulted under the recognition that franchiser and franchise are in the common fate as the partner. Franchisee must make its best efforts to enhance the unity and value of brand jointly with franchiser. Therefore. franchisee has to make efforts to maintain the quality of commodity and service, not to damage the value of title and follow the guidance and effort of franchiser it chose. Franchiser must have the recognition that the success of franchisee is the key of that of franchiser and give franchisee a reliability in order that it follows the order of franchiser. It must have the consciousness that it can achieve the success through the increase of sales by franchisee and support franchisee with trust not to have the easygoing way of thinking to derive its income of commission from increasing the number of franchisees.

• Culinary science and hospitality research
• /
• v.16 no.1
• /
• pp.226-238
• /
• 2010

This study investigates the recovery of trust and provision of a contract between a franchiser and a franchisee in the food service industry. It has come to the following results after analyzing the inter-affections among the franchisers' conditions, the trust level of their support and their intention to contract. First, such factors as experience, confidence, and expertise of a franchisee have significant effects on the terms of a franchiser. Second, ad support, experience, expertise, confidence, and capital factors have significant effects. Third, such factors as history of a franchiser, the number of its franchisees, its brand have significantly influence on trust. Fourth, educational support, utilization of job instruction and purchasing of packages have significant effects on intention to contract.

• Journal of Distribution Research
• /
• v.12 no.1
• /
• pp.33-63
• /
• 2007

This study attempted to investigate comprehensively the impact of support and dissensus on economic satisfaction, conflict, trust, and commitment in the franchise system. Data collected from the food and beverage service industry supported all of the twelve hypotheses that were proposed. In accordance with the results, the following conclusions were made: it is very important to establish trust and commitment in a franchise system, and the core means for that would be the enhancement of the economic satisfaction of franchisees through the reinforcement of the franchiser's supports, and the effective management of conflict between a franchiser and its franchisees through dissensus settlement.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.15 no.4
• /
• pp.245-261
• /
• 2020

The aim of this study is to investigate the correlation between the support activities provided by the franchiser and how they affect the intention of the contract renewal and business performances made by franchisees, developing dynamic trust between these transactional partners. Various supportive activities between franchiser and franchisees were divided into financial and non-financial activities and dynamic trust into Transitional-based trust, Calculative-based trust, Relational-based trust, and Balanced-based trust. These trust types, which are variable and adjustable based on the opportunistic behaviors of business parties, were applied to define the impact of the support activities on the contract renewal intention and the performances. This study was developed around domestic franchisees. An investigator visited business owners and manager level-employees, explained the purpose of the survey prior to the response, and the answers were directly written by hands. A total of 348 copies were used for the analysis. As the results of the analysis, first, financial support activities were found to have a positive(+) effect on transitional-based trust, calculative-based trust, and balanced-based trust. On the other hand, non-financial support activities were found to have a positive(+) effect on calculative-based trust, relational-based trust, and balanced-based trust, and there was no significant relationship on transitional-based trust. Second, the dynamic trust had a statistically significant positive(+) effect on inducing the contract renewal. Lastly, in the relationship between the dynamic trust and its impact on business performances, only transitional-based trust, and relational-based trust were found to have a positive(+) effect on the financial performances. In addition, relational-based trust showed a meaningful positive(+) relationship on the non-financial performances, and non-financial performace showed a meaningful positive(+) relationship on the re-contract intention. From the results, it can be concluded that the financial and non-financial activities for a win-win partnership between franchiser and franchisees are essential in not only forming dynamic trust but also boosting business performances as well as maintaining the business relationship. Thus, it suggests that building a win-win partnership can be promoted more efficiently by specifying activities best suitable for a particular relationship. In addition, a specific set of activities could be presented for establishing the level of trust that is formed in situations that vary depending on transaction risks and interdependency arising from having the transactional relationship based on the contract as the franchise industry features. Eventually, it is expected that this study can provide a way to promote the qualitative improvement of the franchise industry by identifying factors essential to establishing a sustainable win-win system and relationships that can improve the business performance of franchisees.

• Journal of Convergence for Information Technology
• /
• v.7 no.6
• /
• pp.259-265
• /
• 2017

This study reviewed the existing studies in order to set up a strategy that can achieve the trust and business performance of the franchisers, who are actually operating franchised business, breaking from the research trend centered around franchise headquarters and added the factors of the franchise headquarters' strategy for expanding franchises, including word-of-mouth communication and advertising & publicity and added the exercise of recruitment agency outsourcing, flagship store, recently utilized often as preceding variables to verify the causal relation between the trust of the franchiser and the business performance of the franchise. The implications of this study, it can be concluded that the government authority for the attraction of healthy franchises can continuously attract franchises and enter the market can continuously attract franchises by increasing the trust of the franchises, and powerfully investing and managing them for the effort through word-of-mouth marketing. It is expected that this study will be helpful in the establishment of a business strategy for forming a continuous relationship as well as the franchise head office's strategy for the recruitment of new franchises.

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

• Journal of Distribution Science
• /
• v.12 no.12
• /
• pp.119-130
• /
• 2014

Purpose - Franchise industries are significant both socially and economically. However, with increasing interest, there are manifold problems. It is necessary to seek measures for mature operation constantly despite unprepared franchisors, negative perceptions of the media and society toward franchise, and rapid changes in business start-up trends and propensity to consume that make business start-ups difficult. The paper aims to explain the effects of relational commitment and performance on the franchisor's management characteristics and justice in the food service franchise system. Research design, data, and methodology - This is an exploratory survey examining franchising in Korea. Based on a literature synthesis, we extract five constructs: managerial characteristics, support, fairness, trust, and satisfaction. We hypothesize that these factors influence the trust, satisfaction, and performance of franchisees. To examine these hypotheses empirically, we conducted a survey on the database of the Franchising Council of Korea. The study employs data from May to September 2014. In total, 135 completed questionnaires were received, of which 128 were usable. The data was analyzed with SPSS/PC 22.0. First, to test unidimensionality and nomological validity of the measures of each construct, we employed a scale refinement procedure. The result of a reliability test with Cronbach's α and factor analysis warranted unidimensionality of the measures for each construct. In addition, nomological validity of the measures was warranted from the result of the correlation and regression analysis. By analyzing the data, we can confirm most hypotheses. Results - Frist, franchisor characteristics have a positive effect on trust and satisfaction. Second, franchisor fairness has an effect on trust and satisfaction. Third, franchisor support has an effect on satisfaction. Further, the franchisee trust has an effect on satisfaction. Fourth, the satisfaction of a franchisee with a franchisor affects the performance of a franchisee. Finally, there is a possibility that not only franchisee performance but also increasing the credibility and improving the image of the franchisor through communication between franchisor and franchisee can improve franchisees' performance and satisfaction by motivating the franchisee for sustainable growth. Franchisers should endeavor for franchisees to obtain stable revenue with continuous and practical support. They should recognize that they can expand their business by supporting their franchisees. Franchisors should not only instantly respond to franchisees' troubles with interactive communications but also raise the ability of supervisors for better support. Franchisors should share their visions and goals with their franchisees and provide systematic and continuous support based on trust and clear company management. Franchisees should understand franchisors' position as well as participate in establishing the basic franchise system. Contributions - The paper contributes to understanding franchising in Korea. It offers insights and assistance to franchisors hoping to start franchises. This paper explores measurement issues related to franchisee performance by estimating its determinant factors (managerial characteristics, support, fairness, trust, and satisfaction). This study provides franchisors and practitioners planning to extend their franchising business with some practical knowledge.