• Title/Summary/Keyword: franchise

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Case Study of Settlement of Disputes and Complications of Dinning-out Franchise Affiliates (외식프랜차이즈 가맹점의 갈등과 분쟁해결 사례연구)

  • Kim Ki-Hong;Chung Ung-Yong;Byun Joon-Young
    • Journal of Arbitration Studies
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    • v.15 no.3
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    • pp.207-232
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    • 2005
  • This study is for an example of arbitration of a dining out franchise company in Korea and franchise system currently is expanding and developing to international trade. The main reason for that is franchising has some benefits compared to the existing trades. Korean dining-out industry has largely developed for the past 20 years, but there are little world-class company of the industry, because dining-out industry should go for qualitative as well as quantitative growth at the same time. Korean dining-out industry has adopted licensing and joint-venture among growth strategies, but the franchise system among them seems to have taken its place as a representative strategy for management to develop dining-out industry. The history of Korean dining-out franchise industry is very short and it is true that we have no a management philosophy of accompanying growth with franchise due to a short experiences and recognition of top management or managers and short-term strategy for branch expansion. For a brilliant growth of dining-out franchise industry, to settle disputes through arbitration, in case of disputes taking place, is very important, because the franchise industry is a frequent-trading sector, requires expert-level knowledge, favors a closed examination and also needs a fast solution. As the franchise industry has been sharply growing around the world, there is more possibility of disputes, and various and complicated laws of the industry are related to disputes as well, so much more expert-level knowledge is required to solve disputes. Therefore, affiliated headquarters hope a disclosed settlement of their disputes and their any disputes should be fast settled for the benefits of affiliated members.

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Effects of the Characteristics of Franchise Educational Institution and Contents on the Educational Transition (프랜차이즈 교육기관과 교육콘텐츠의 특성이 교육전이에 미치는 영향)

  • Sung, Eun-Kung;Kim, Moon-Myoung;Seo, Min-Gyo
    • The Korean Journal of Franchise Management
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    • v.10 no.4
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    • pp.43-52
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    • 2019
  • Purpose: As a research on the effects of the characteristics of franchise educational institution and contents on the educational transition, commitment, and recommendation intention, this study aimed to suggest the basic data that could be used for the performance of educational training of franchise headquarters, and also to suggest an empirical research helpful for the development of actual educational system and the operation of curriculum for franchise educational institutions. Research design, data, and methodology: This study selected the trainees who recently completed the training in a franchise educational institution as the samples. The survey was conducted for 20 days from October 1st to October 20th 2018, targeting total 230 people, and total 207 questionnaires were collected (Missing value 23). To verify the validity of the measurement tool used for this study, this study reviewed the factor loading of each factor by conducting the confirmatory factor analysis(CFA), and then verified the average variance extracted(AVE) and the composite construct reliability(CCR). Lastly, the structural equation model(SEM) was verified based on the research hypotheses and research model. The SPSS Win Ver. 20.0 & AMOS 20.0 were used for every analysis of this study. Results: The results of this study could be summarized as follows. First, the reputation and interaction of the characteristics of franchise educational institution had significantly positive(+) effects on the educational transition. Second, all the sub - variables of educational contents such as job relevance, education method, and instructors' professionalism had positive(+) effects on the educational transition while the educational transition had positive effects on the organizational commitment, career commitment, and job commitment. Lastly, the organizational commitment and job commitment had positive(+) effects on the recommendation intention. Thus, the trainees with higher organizational commitment and job commitment in a franchise educational institution, showed higher intention to recommend the educational institution to others. Conclusions: The results of this study imply that the franchise educational institutions could increase the actual performance of education such as educational transition, commitment, and recommendation intention by increasing interactions within educational institutions and also designing effective educational contents, so that the trainees could highly perceive the educational transition of education.

A Systematic Review Study on the Start-Up Sustainability Factors by Franchises Growth Cycle in Korea : Focusing on the ERIS Model

  • Kim, Insook;YANG, Jihee
    • The Korean Journal of Franchise Management
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    • v.12 no.2
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    • pp.23-33
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    • 2021
  • Purpose: The purpose of this study is to provide basic data such as development of sustainable support policies and performance management evaluation to support sustainable management of domestic franchises by deriving the sustainable growth cycle of domestic franchises. Research design, data, and methodology: This study is based on systematic review study. We combined search terms such as "Start-up", "Sustainability" and "Success" with four databases, RISS, KISS, e-article and DBpia and searched a total of 1,219 articles published by April 21, 2021. In the process, 35 studies were selected and analyzed after an expert review, excluding documents whose overlapping documents, gray zones (e.g., reports, conference presentations, etc.), degree papers, foreign language literature, and dependent variables were not related to the Sustainability factors. Using ERIS model, which is applied to research on the results of startup, and the franchise's growth cycle, which reflects the growth stage of franchises, we analyzed the factors behind the sustainability of franchise. Result: The results of the study are as follows. First, research on the sustainability of franchise has continued since 2009 in Korea, and has been conducted in various fields such as social welfare in addition to venture, start-up and management. Second, sustainability factors of franchise were analyzed from the ERIS performance model indicating the performance of venture, and the 68 subfactors were derived. Third, it is confirmed that there are important factors that affect the sustainable growth of franchise startups in each franchise's growth cycle. Conclusions: It is significant that through this study, we provided better understanding of the factors that sustain sustainability of franchises, policy suggestions, and presented the direction of future study. Theoretical suggestion is that the main reason for the continuous growth of franchise in each domestic franchise is based on the ERIS performance model. The practical implication is that the headquarters and Franchisor can use it to establish and evaluate performance indicators based on the business growth cycle. The results of this study are expected to be used as basic data for development and performance management evaluation of franchise start-up support policies to support the sustainable management of domestic franchises.

Improvement Method of Domestic Franchise System based on the study through the Dispute cases (분쟁사례를 통해본 국내 프랜차이즈 시스템의 개선방안)

  • 류경인
    • Culinary science and hospitality research
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    • v.7 no.2
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    • pp.217-242
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    • 2001
  • A Study on the improvement Method of Domestic Franchise System based on the study through the Dispute cases. Future franchise operating is hard to survive if it has it's own competitive power in the fair trade. So first of all, Headquarter of franchise has the competitive power. Second, it has knowhow, because that knowhow is driving force which can lead a member of franchiser. third, it can supply tableware and materials without a hitch. In the conclusion, franchise operator has the competitive power that are difference and fair trade. Also, when franchiser always cooperate franchise operating, that contributed much to the growth of the foodservice. In the future, the study on foodservice of franchise should be go on more deeply.

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The Effect of Franchise Entrepreneurial Passion on Corporate Trust, Identification, and Loyalty (프랜차이즈 기업가 열정이 기업신뢰, 일체감, 그리고 충성도에 미치는 영향)

  • Park, Heung-Jin;Han, Sang-Ho;Kim, Eun-Jung
    • The Korean Journal of Franchise Management
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    • v.8 no.3
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    • pp.17-27
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    • 2017
  • Purpose - In align with the increasing competition in both online and offline franchise markets caused by the increasing impact of social networking service, entrepreneurial passion(EP) of the franchise owners has crucial impact on the stakeholders. This study proposed the customer among stakeholders has the critical influence firm's success and examined the structural relationship between entrepreneurial passion(EP) and trust, identification, and loyalty from the customer's perspective. Research design, data, and methodology - This study examines the structural relationship between entrepreneurial passion(EP), trust, identification, and loyalty from the customer's perspective. More specifically, the EP were measured using three sub-dimensions such as EP-inventing(Perceived passion for inventing), EP-founding(Perceived passion for foundting), and EP-developing(Perceived passion for developing). In order to verify the research purposes, research model and hypotheses were developed. All constructs were measured with multiple items developed and tested in the previous studies. Each item was measured on a 7 point Likert-scale anchored by '1 = strongly disagree, 7 = strongly agree'. The data were collected from 449 franchise consumers through online survey and were analyzed using SPSS 21.0 and Smart PLS 3.0. statistical program. Result - The results of this study are as follows. First, EP-inventing and EP-developing have significant impacts on corporate trust. Second, EP-founding does not have significant impact on corporate trust. Third, EP-inventing and EP-founding have significant impacts on consumer identification. Fourth, EP-developing does not have impact on identification directly, but does indirectly through corporate trust as a mediator. Fifth, corporate trust and identification have significant impacts on loyalty. Conclusions - This indicates that the foodservice franchise CEOs should continuously develop new menus and service to fulfill customer needs. EP-inventing of the food franchise CEOs may enhance customer trust for higher quality of product or service, and EP-developing can also be a driving force for customer trust as it embeds belief in customers that the franchise is sustainably developing. Also, food franchise CEOs should first clarify the support process for the existing brands before developing new ones. Customers tend to lead the trend by using brands that satisfy new trends in the foodservice franchise market, and it could have identification with the trend-setting franchise. Customers do not accept if a company is different from their personal image or norms. So the franchise CEOs must create identification with customers by building corporate trust. Corporate trust influences consumer behavior and emotion, thus the franchises need to secure trust by improving product or service continuously.

A Study on the Effects of Franchise's Factors and Performance : Analysis Disclosure Agreement (프랜차이즈 가맹본부의 특성과 가맹점 사업 성과간의 영향에 관한 연구 : 정보공개서를 중심으로)

  • Lee, Eun-Ji;Cho, Chul-Ho
    • The Korean Journal of Franchise Management
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    • v.3 no.2
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    • pp.20-38
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    • 2012
  • After being introduced into franchises industry, franchise has made a phenomenal growth in a short time and a substantial contribution to job creation and economic revitalization. Nevertheless, franchise business operators failed a business or low profit because of a lack of information and indiscriminate foundation. Therefore the first object of this study is characteristics of franchise's factors on disclosure agreement in franchise associate website. second is examinations about casual relationship between factor and franchise performance with using Excel and SPSS 18.0 versions. The findings of present study were as follows. First, franchises manage small business mostly(financial data, scale so on) and franchise's type focused the food service industry. Specially, a business district select unprotected contract. Second, in franchise's factors, we could find statistically significant effect on annual average sales and annual average net profit. However growth rate of franchise don't have statistically significant effect. Third, we could find statistically significant difference on analysis both franchises' factors and financial data. In conclusion, we must consider of franchise industry environment and success effect on performance in starting one's business. Furthermore franchises plan ways for their sustained growth and protection of rights and interests. Finally business operator draw up their information and upgrade continuously for franchises industry growth. Discussion and theoretical and managerial implications of the results were described along with future franchise research suggestions.

Development procedures of franchise Industries in Current state of manpower and research on its utilization (프랜차이즈 산업 발전과정에서 인력현황 및 활용에 대한 연구)

  • Lee, Dong il;Park, Shinja
    • The Korean Journal of Franchise Management
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    • v.1 no.1
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    • pp.43-63
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    • 2010
  • Currently, franchise industries are constantly rising in the domestically and it is possible to predict that franchise industries will rapidly develop internationally. Local Franchisee markets are increasing quickly and in year 2010 their income will exceed 114 trillion won. Annually, new franchise system is being born; however, there are only few industries that success in the market. When circulation market was opened for foreign franchise industries, their numbers of franchisee were rapidly increasing; however, domestic franchise industries are not securing new franchise and strengthening current franchise 's man power moreover these implements are being discarded. Therefore, in this research shows that development procedures of franchise division and utilization of personnel, and subsequent to this research indicates that changes of scales and income of cooperate growth will determine numbers of manpower on franchise industry. N ow days, when we are looking at personnel in franchise industries, they need more personnel in distribution, finance, and accounting department, so this phenomenon formalize life cycle of organization and its stages. When we are considering life cycle of organization, needs of human resource on future is important.

A Study on a Solution For Growth of Beauty Salon Franchise - around an influence of a conflict upon a solidarity -

  • Lee, Joung-Ho;Chun, Tae-Yoo
    • International Journal of Costume and Fashion
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    • v.3
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    • pp.121-139
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    • 2003
  • A purpose of this study is to measure degree of solidarity and conflict of the beauty salon franchisees according to an influence strategy of franchiser and grasp characteristics revealed from managing a franchise system. This will also contribute to improving results of franchise systems and considering a direction for development. This study examined existing studies relevant with conflict and solidarity and analysed relativity between relevant variables and grasped the flow of studies and then set hypotheses in order to present a device for decreasing conflict within a franchise system of beauty shops and for increasing a solidarity and subsequently analysed samples and tested data. The data for this study are researched by sending questionnaires to beauty salons which participated in one of franchise systems and they are analyzed by various methods in a statistics. After studying some relevant theories, this study used the definition of the franchise system in beauty salons as an entity of a political-economy paradigm. A franchiser desires to influence member shops with an influence-strategy. Therefore member shops which perceived it go through a conflict and then such a process is revealed as making significant influence on solidarity. Beauty salon franchise exists by reciprocal confidence and transaction. If an opportunism gain in influence owing to an conflict intensification, there would be no steady formation of relationship. Therefore the head office should develop a member-shop-management-system by more scientific and more technical methods and prevent, in advance, member stores from seeking for negative opportunism.

A Study on Locations and Characteristics of Franchise by Commercial Vitalizations in the Gentrification Area - Focused on Samcheongdong area, Seoul - (젠트리피케이션 발생지역에서 상권 활성화에 따른 프랜차이즈 분포 및 특성에 관한 연구 - 서울시 삼청동지역을 대상으로 -)

  • Kim, Chang-Ho;Kim, Hwan-Yong;Na, In-Su
    • 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.

Effects of Foodservice Franchise's Advertising Model Characteristics on Model Satisfaction, Brand Image, and Purchase Intention (외식 프랜차이즈의 광고 모델 특성이 모델 만족도, 브랜드 이미지 그리고 구매 의도에 미치는 영향)

  • SONG, Hae-Sun;KO, Ki-Hyun
    • The Korean Journal of Franchise Management
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    • v.12 no.4
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    • pp.25-40
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    • 2021
  • Purpose: Marketing communication with customers is essential for companies to survive and grow in a fiercely competitive environment. Advertising is one of the most readily accepted marketing communications by consumers. Unlike a company that owns a distribution network, advertising is vital for a franchise. In general, many advertising models select celebrities. Celebrities are more likely to attract audience attention and influence consumers' purchase intentions. Customers satisfied with advertising are more likely to stay loyal and buy again when the company launches a new product. In addition, customers form a brand image through advertisements. Therefore, in this study, the effect of the characteristics of the foodservice franchise advertising model characteristics on model satisfaction, brand image, and purchase intention. Research design, data, and methodology: The survey of this study was conducted among consumers over the age of 20 who had seen a restaurant franchise advertisement and visited a store within the last 2 months. 305 copies were collected for 7 days during the survey period, from October 21 to October 27, 2021. Among the collected questionnaires, 12 insincere questionnaires were excluded, and 293 were used for analysis. SPSS 25.0 and Smart PLS 3.0 were used as data collected to test the hypothesis. Result: As a result of the study, among the advertising model characteristics of a foodservice franchise, reliability, attractiveness, expertise, and closeness all had a significant positive (+) effect on model satisfaction. In addition, reliability and closeness were found to have a significantly positive (+) effect on brand satisfaction, but attractive and expertise did not significantly affect brand image. Finally, model satisfaction was found to have a significant positive (+) effect on brand image and purchase intention. Brand image also appeared to have a significant positive effect on purchase intention. Conclusions: Research Results First, this study verified the effect of a restaurant franchise advertising model using celebrities by using the characteristics of the advertising model. Second, this study developed a conceptual structure for model characteristics - model satisfaction - brand image - purchase intention. Third, the restaurant franchise marketer needs to select a model in consideration of the privacy of the advertising model. Fourth, consumers tend to equate advertising models with advertising