• The Korean Journal of Franchise Management
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• v.11 no.4
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• pp.45-57
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• 2020

Purpose: The purpose of this study is to determine the importance and priority arising from the relationship between MRO-office supplies franchisor ("franchisor") and franchisees through an in-depth investigation. In particular, with respect to the MRO-Office franchise industry, we would like to make meaningful contributions in the decision-making process by comparing and contrasting factors that affect the importance and priority of communication, conflict, support and satisfaction through AHP analysis. Research design, data, and methodology: After completion of AHP analysis, the study will also identify factors in order of priority and factors of importance between the franchisor and franchisees. Another purpose of this study is to evaluate and propose business relationship strategies between the franchisor and franchisees. Through AHP analysis, this study will facilitate the relationship between the franchisor and franchise, and determine the factors of importance and factors in order of priority. Result: This study evaluates the differences and priorities of the two groups arising from the relationship between the franchisor and the franchisees through AHP analysis after separately analyzing the franchisor. In this study, the franchisees find that communication is the most important factor, then support as the second most important factor between the two groups. In contrast, the franchisor finds that support is the most important factor followed by communication between the two groups. Conclusions: This analysis demonstrates the discrepancy in evaluating important factors from the perspectives of the franchisor and the franchisees. The largest discrepancy between the franchisor and franchisees comes from an information system related to communication factors. This effectively means that the franchisor has an understanding of this inadequate information system on the part of franchisees but this understanding is not deemed an important factor. The franchisees recognize and focus on the need to obtain feedback from the franchisor regarding management improvement as the most important factor rather than the ability of the franchisor to guide them through the franchisees' operations. To this end, the franchisor should be more flexible in dealing with the problem of improving the work required by the franchisees. For this study, a survey was conducted on employees of MRO-office supplies franchisor, franchisees, and employees and completed based on AHP analysis.

• Culinary science and hospitality research
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• v.15 no.4
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• pp.331-344
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• 2009

As per the results verified in this study for the effect, which is given to the intent for contract according to the franchisor's capacity and support factors per the founder's characteristics. Firstly, as for analysis of the effect given by the conditions of the founder to the capacity of the franchisor, the experience and the founder's self-confidence are attentively affected in the history of the franchisor among the capacity of the franchisor, and the experience and the specialized knowledge done in the number of the franchises, and the experienced, specialized knowledge and self-confidence of the founder done in the brand and the self-confidence of the founder done in the capacity of the franchisor. Secondly, as for the hypothesis, which the founder's conditions is the support of the franchisor, the experience, specialized knowledge and the founder's self-confidence attentively affected in the support for advertisement, and the capital and experience done in the educational support, and the capital and specialized knowledge and the founder's self-confidence done in the business manual and the founder's self-confidence done in the package. Thirdly, as for the effect given by the capacity of the franchisor to the intent for contract, the number of the franchises possessed the franchisor and brand are affected to the capacity of the franchisor, and fourthly, as for the hypothesis, which the support of the franchisor affects the intent for contract, the educational support, business manual and package purchase are attentively affected. Therefore, through this study, it can be known that the characteristics of the founder and the capacity and support of the franchisor are mutually related to the intent for contract.

• Culinary science and hospitality research
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• v.12 no.2 s.29
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• pp.18-38
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• 2006

We studied franchisees’ answers to the questionnaires to know their selective motives and criteria, their types and the reliability of a franchisor in the food-service industry. Then we showed the basic data about the selective criteria of a sound franchisor. The result of this study was as follows. First, we need a specialist and a department to present a financially sound franchisor. Second, we must determine the criteria of franchise fee, royalty and the other items on payment for the franchisor. Third, the alternative plan to trust the franchisor was needed for a large-scale franchisee.

• Journal of Arbitration Studies
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• v.30 no.4
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• pp.139-161
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• 2020

In this study, the factors affecting opportunism that causes conflict in the franchise system between franchisor and franchisee were analyzed based on the transaction cost theory and power-dependency theory. Hypothesis 1 states that franchisor support will negatively affect opportunism. Hypothesis 2 expresses that franchisee transaction-specific investment on the relationship with the franchisor will positively affect opportunism. Hypothesis 3 asserts that franchisee dependency on the franchisor will positively affect opportunism. All of these were supported. However, Hypothesis 4, maintaining that franchisee competitive intensity will positively affect opportunism, was not supported. The theoretical and practical implications of this study are as follows. This study has identified the antecedents of franchisor opportunism that causes conflict in the franchise system by comprehensively applying the transaction cost theory and power-dependency theory. This study can also identify what a company should manage specifically to lower opportunism by identifying the antecedents of franchisor opportunism in the franchise system. The limitations of this study and the directions for future studies are as follows. First, not all of the antecedents of franchisor opportunism in the franchise system have been extensively investigated from the transaction cost theory's and power-dependency theory's viewpoint. In the future, it is necessary to identify additional factors. Second, the study was conducted only from the franchisee's perspective. In future studies, more accurate research results can be obtained by simultaneously examining the franchisee's point of view and the franchisor's point of view.

• The Korean Journal of Franchise Management
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• v.6 no.2
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• pp.31-49
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• 2015

The purpose of this study was to propose a policy development plan for win-win growth between franchisor and franchisee by investigating success factors of win-win growth on the basis of the problems between franchisor and franchisee. There are many small scale franchise businesses in Korea that have not achieved an economy of scale compared to the developed countries. The conflicts between franchisor and franchisee have continued due to a lack of social trust which comes from an excessively high ratio of business failure and big firms' expansion into franchise business, then again, the perception of relations between the topdog and the underdog causes many problems. As franchise is the industry based on common people that helps service industry advance and competitiveness of the self-employed improve, it needs to be activated as the higher value-added business by promoting establishment of business and strengthening foundation of related industry. A matter of mutual cooperation and win-win growth between franchisor and franchisee is important not only for the sound development of franchise industry but also for the stable growth of nation's economy. Thus, this study suggested a policy development plan for win-win growth between franchisor and franchisee by analyzing success factor of win-win growth based on the problems between franchisor and franchisee. The results of the study provide the important strategic way towards mutual growth and maintaining cooperative relationship between franchisor and franchisee in Korean franchise industry.

• Journal of Distribution Research
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• v.15 no.4
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• pp.87-117
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• 2010

'Entrepreneurship' which means spirit or activity seeking new value by challenging boldly the uncertainty is one of the most important concept in 21st century business environment. Franchise Industry taking a relationship with distribution industry also needs entrepreneurship. As franchise industry consists of small and medium enterprises, the entrepreneurship of franchisor's CEO is important for the franchisor's growth. The purpose of this study is to analyze the factors influencing on the entrepreneurship of franchisor's CEO, and the effect of the CEO's entrepreneurship on franchisor's performance. For this purpose, this study set CEO's psychological characteristics, market characteristics, and social-institutional characteristics as independent variables, CEO's entrepreneurship as parameter variables, and franchisor's performance as dependent variables. And to analyze this study model, this study collected questionnaires from 152 franchisors' CEOs, and uses SEM(Structural Equation Modeling). As the result, 'CEO's Entrepreneurship' influenced on both 'Franchisor's Financial Performance' and 'Franchisor's Non Financial Performance'. The results of this study provide some guides for franchisor's CEO and government policies.

• Culinary science and hospitality research
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• v.16 no.3
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• pp.174-187
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• 2010

The purpose of this study was to examine the effect of franchisor's training on franchisee's trust and relationship satisfaction. In addition, it investigated the difference in the perception of franchisor's training system by the duration of the franchise contract and the frequency of franchisor's visiting. In order to carry out the empirical study, a questionnaire was distributed to franchisees from July 26 to September 1, 2009, and a total of 255 copies were returned and used for analysis. In analyzing the data, three factors of the franchisor's training were obtained: pre-training, franchisor training, and supervisor training. These three factors had a significant effect on franchisee's trust and satisfaction with the relationship. Also, There was significant differences among franchisor's training by duration of the franchise contract. The findings of the study suggested useful implications in the related industries.

• Culinary science and hospitality research
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• v.13 no.3
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• pp.239-251
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• 2007

The purpose of this study is to examine the service quality satisfaction in the franchisor-franchisee relation. For the result of this study, we studied the franchisees' answers to the questionnaires about franchisors' service quality. Through this study, we showed the basic data about the selective criteria of the franchisors' service quality. Based on this study, it can be concluded that there are differences in their service quality. The most effective factors of the franchisor's service quality are personnel service(0.510) and menu service(0.390). The finding is $R^2$ -0.489. Therefore, franchisor should pay attention to competent labor service and new menu development. Each factor affects satisfaction with franchisee's service quality, but only convenience and location are not affected.

• Journal of Distribution Science
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• v.12 no.12
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• pp.19-26
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• 2014

Purpose - This paper aims to test the effects of Korean food service franchisors' and franchisees' TSI (Transaction Specific Investment) on dependence and trust toward the franchisor and re-contract intention. The study examines the effects of both franchisors' and franchisees' TSI on dependence and trust, as compared with Ganesan (1994). Research design, data, and methodology - Data were collected from 495 Korean food service franchisees and analyzed with structural equation modeling using path analysis through SPSS 18.0 and AMOS 18.0. Results - 1) The franchisor's TSI has positive effects on the franchisee's dependence and trust toward the franchisor. 2) The franchisee's TSI has a positive effect on the franchisee's dependence toward the franchisor. 3) The franchisee's dependence and trust have positive effects on commitment. 4) The franchisee's dependence, trust, and commitment have a positive effect on re-contract intention. Conclusions - The franchisor's and franchisee's TSI affect the franchisee's dependence and trust toward the franchisor. The franchisee's dependence and trust influence commitment and re-contract intention. This has managerial implications for franchisors striving to raise franchisees' re-contract intention.

• Journal of the Korea Society of Computer and Information
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• v.23 no.10
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• pp.189-201
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• 2018

This study analyzed the effect of core competence of supervisor on the satisfaction, loyalty, business performance of franchisees and business performance of franchisor. And the purpose of this study is to solve the most problematic issues in franchise business such as poor sales of franchisee, inadequate measures for activating sluggish stores, closing rate increase of franchisee, dispute between a franchisee and franchisor. The results of this study will be used as data for the success of Franchisor's business operation and for the change and development of the franchise industry. In this study, 168 CEOs and employees in the franchise industry were surveyed. Through previous research and expert interviews, we designed the core competency factors of franchise supervisors into seven areas: check, consulting, coordination, promotion, counseling, communication, and control. In order to verify the hypothesis of the research, the relationship between variables was verified by simple regression analysis and multiple regression analysis. Key result of the study are as follows. First, the core competency of the supervisor has a positive relationship with the franchisee's satisfaction. Second, the core competence of the supervisor has a positive relationship with the franchisee's loyalty. Third, franchisee's satisfaction has a positive effect on loyalty. Fourth, franchisee's satisfaction positively affects the business performance of franchisee and franchisor. Fifth, franchisee's loyalty positively affects the business performance of franchisee and franchisor.