• Culinary science and hospitality research
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• v.20 no.6
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• pp.175-189
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• 2014

This study was intended to provide fundamental data concerning franchising companies' characteristics and performance in foodservice business by employing financial data from the firms' IDS(Information Disclosure Statements). Multiple regression analysis method was used to identify any correlations among franchising size, marketing competency, operational characteristics, and performance according to technique based upon 169 IDS data as of 2013. In terms of franchisor size and performance, the number of company-operated stores had statistically significant corelation with sales, net income, the total number of stores, and the number of franchisees. With respect to marketing competency and performance, advertising expenses showed statistically significant correlation with sales, the total number of stores, promotion expenses with sales, net income, and the total number of stores. On the other hand, there was no statistically significant correlation with current year's net income. At last, present study found significant correlations among business years, sales, current year's net income, and the total number of stores by regarding operational characteristics and performance, but there was no significant correlation between brands and performance. This study is cross-sectional study which is a limitation to be overcome in further studies. In addition, it is required to review the possibility for franchise management style to contribute to expanding the Korean traditional foods.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.7 no.2
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• pp.157-165
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• 2012

The specific gravity is heavily focused on the service industry in the economic development of domestic and overseas in these days. This will be predicted to increase persistently in the future society. Therefore the franchise system has been diffused as one of a management methods for these service industry. The franchise system is an advanced country's circulation system which has been populated in an advanced country. After the opening of circulation market, rapid growing trend has been showing on foreign country's popular brands in the local domestic market. So the franchise system has been largely focused on among the domestic manufacturing and the circulation companies. This study is to review how the management characteristics(headquarters' supports, communication, menu development, compensation) will affect the fairness perception of franchisee owner. The results of my study are as follows; It appeared that communication, menu development and compensation affected all the distribution fairness and the procedure fairness affirmatively.

• Journal of Distribution Research
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• v.16 no.5
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• pp.141-169
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• 2011

This study compares the business performances and the socioeconomic and sociopsychological characteristics of franchisees and independent business owners (IBOs). On the basis of extant theoretical arguments and empirical evidences it was expected that franchisees are different from IBOs in these aspects because unlike IBOs they are using franchising as their way of businesses and should satisfy the requirements imposed by franchisors. Analyzed in the current study was a national survey database of 424 franchisees and 5,690 IBOs compiled by the Small Enterprise Development Agency in 2011. As expected, it was found that franchisees were significantly different from IBOs in such traits as financial and managerial capabilities, business experiences, demographic and socio-psychological characteristics, information searching efforts, business performances, and their perceptions of business obstacles. It was also found that the effects of these traits on business performances were quite different between franchisees and IBOs. The findings of the current study provide some meaningful suggestions for government agencies. Given that franchises and IBOs have different traits, their demands for governmental policy should be different, and consequently, it might be argued that government agencies should treat the two groups separately and should increase their efforts to develop appropriate supporting policies for each group. With respect to franchisor's practices for franchisee selection, it is also argued that in order to enhance franchisee performances franchisors need to examine thoroughly the traits of prospect franchisees. This study concludes with discussion of several theoretical and methodological limitations for future research.

• The Journal of the Korea Contents Association
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• v.11 no.3
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• pp.351-367
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• 2011

Few previous researches have been studied in terms of franchisees' perceptions of franchisors' entrepreneurial activities within the boundary of restaurant franchising industry settings. The sampling frame for this study included 605 restaurant franchisees in the business-format franchising system in Korea and data were collected from 1 October 2009 to 28 February 2010. This study, from franchisees' views, investigated the relationship among franchisors' entrepreneurship, external environment, organizational structure(mechanistic-organic) and managerial performance, with structural equation modeling(SEM). The research findings were, firstly, external environment positively affected entrepreneurship which positively affected market orientation and managerial performance, and secondly, market orientation made franchisors select organic structure and heighten managerial performance. Also, external environment led franchisors to adopt organic structure and aggravated their managerial performance. The implications of these findings were as follows. Firstly, the more franchiors had initiatives, innovatedness and risk-taking attitudes, the higher they had managerial performances and market orientation. Secondly, franchisors should keep and heighten market share with keeping in mind with customer orientation, competition orientation, harmony between departments, long-term orientation and profitability. Thirdly, continuous and cautious environmental scanning was necessary because external restaurant environment made organizational structure being changed and managerial performance being aggravated.

• Journal of Distribution Science
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• v.14 no.9
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• pp.95-110
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• 2016

Purpose - Based on expectation-disconfirmation theory, this study attempted to fill the gap in the literature by treating the expected profitability as a moderator in the relationship between these constructs, identifying what instrumental factors have effects on dissatisfaction, in turn lead to exit intention, neglect, voice, and loyalty, and provide the managerial implications for building long-term relationship to enhance the partnership between franchisor and franchisee. Research design, data and methodology - In order to test the hypotheses, the authors developed several hypotheses. The data were collected from 254 franchisees in Seoul and Gyeonggi Province with SPSS 18.0 and SmartPLS 2.0. Results - The findings of the study are as follows. First, marketing support and competitiveness of product and service had a negative effect on dissatisfaction, but did not on logistics support. Second, franchisee dissatisfaction had a positive effect on exit intention and neglect, and had a negative effect on loyalty. However, franchisee dissatisfaction had not a significant effect on voice. Third, expected profits play a moderating role in the relationships between marketing support, competitiveness of product and service and dissatisfaction, between dissatisfaction and exit intention, voice, loyalty, and neglect. First, marketing support and competitiveness of product and service were found to have a greater influence on dissatisfaction for the low expected profitability group than the highly expected profitability group. Also, dissatisfaction had a greater impact on exit intention, voice, and neglect for the low expected profitability group than the high expected profitability group while dissatisfaction had a weaker impact on loyalty for high expected profitability group. Conclusions - The result of this study indicates that franchisors should reduce dissatisfaction and prevent or improve complaint behaviors by continuously identifying the impact relationship between franchisee dissatisfaction and decision factors caused by difference in expectations for roles of franchisees and franchisors. In addition, franchisors should acknowledge that the impacts of marketing support, and product and service competitiveness on franchisee dissatisfaction and on exit intention, neglect, and loyalty differ by expected profits. Therefore they should provide support in perceiving high expected profits through creating direct profits including high sales, low costs, and low rents.

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

• The Korean Journal of Franchise Management
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• v.10 no.2
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• pp.33-47
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• 2019

Purpose - The purpose of this study is to classify and analyze existing studies from various angles through systematic literature review of how human resources development has been researched in the domestic franchise business. These studies are intended to suggest the direction in which human resource development research should be conducted in the future in the franchise business. Research design, data, and methodology - This study is based on systematic literature review methodology. It has gone through the process of subject language setting, literature search routing, search term selection, literature selection, literature classification and literature analysis. The systematic literature review identified 59 peer-reviewed dissertations and scientific journal publications on the subject of HRD in Korea franchise business. Result - This study analyzed by research methods, research industries, research population and dependent variable using the systematic review process. The literature studied in the 2000s mainly led to research on education and training of franchise employees in beauty franchise business. In the literature studied since 2010, human resources development was mainly studied in the supervisor in the restaurant franchise business, and in the study of competence rather than education and training. According to the research methods, statistical methods were mostly relatively simple, such as t-test or one-way distribution analysis until the 2000s, and after 2010, in-depth and structural studies using multiple return analysis, structural method analysis, path analysis, multi-dimensional scale analysis, AHP, etc were conducted. When classified by study dependant, early research until the 2000s focused on the study of education and training, which is an independent variable, on the satisfaction of education programs, job satisfaction, and immersion. On the other hand, studies conducted since 2010 have produced more complex results using various medium variants, and those related to management performance and relationship performance have been mainly studied, rather than the satisfaction of the education itself. Conclusions - While the domestic franchise business is expanding in terms of quantity, such as the number of franchises and franchises, the development in terms of quality for the joint growth of franchises and franchisees is still lacking. In order for the franchisee to continue to grow with each other, the franchisee must identify and develop their current performance or expected capabilities through capacity modeling at various targets and levels.

• The Korean Journal of Franchise Management
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• v.12 no.2
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• pp.7-21
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• 2021

Purpose: One of the characteristics of service companies such as foodservice franchise is that it is easy to imitate, so many brands can imitate the menu that is popular with consumers. Therefore, foodservice franchise company should develop a brand that customers can identify from other brands in order differentiate it from its competitors. In order make the foodservice franchise company identifiable from other brands, it is possible through communication with customers. Therefore, this study proposes a new research model to analyze customer loyalty through online advertising and online word of mouth trust and immersion. Online was provided to customers through a mixture of advertisements and word of mouth, but previous studies have only considered online advertisements or online word of mouth. In addition, we want to verify the difference according to gender, which is an important variable in researching the online information processing behavior of customers. Research design, data, and methodology: The questionnaire of this study was surveyed on 20 years of age or older who have visited the restaurant franchise store within the last 3 months among the foodservice franchise companies operating SNS. During the survey period, 400 surveys were surveyed for a total of 20 days from April 1 to April 20, 2020. Result: The research results are as follows. First, in this study, the effect of online advertisement and online word of mouth on trust and immersion was studied. Second, this study verified the social influence theory in online advertising and online word of mouth. Third, the effect of online advertising and online word of mouth on loyalty according to gender was verified. Fourth, compared to existing advertisements, online advertisements are suitable for marketing by foodservice franchise companies because they can interact with consumers, modify advertisements immediately, execute extensive advertisements at low cost, segment the market, and measure advertisement effectiveness. The recent online expansion has been expanded to mobile-based, allowing foodservice franchisees to provide new communication services such as SMS (Short Message Service), multimedia messaging services, and location-based services. Fifth, a foodservice franchise company can increase brand awareness through online marketing or induce the use of offline stores. Sixth, franchisor can grow into a sustainable company only when they use resources efficiently. Conclusions: Trust is important in foodservice franchise information. This trust has a significant impact on customer commitment and loyalty.

• The Korean Journal of Franchise Management
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• v.8 no.3
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• pp.29-37
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• 2017

Purpose - In recent years, research has been conducted on the conflict resolution strategies of the franchise headquarters and the franchisees, but there is a lack of research on the factors of conflict due to the intrinsic structure, such as interdependence or hierarchical relationship, and behavioral analysis to reduce the conflict. In this study, we analyze the relationship between satisfaction and trust formed in the process and result of the business, and the result of action to dissolution intention. Research design, data, methodology - For these purposes, the author developed the proposed model and several hypotheses. In this model, conflict resolution strategies consist of five dimensions such as avoiding, forcing, cooperating, obliging, and compromising strategy. And, this model proposed that onflict resolution strategies are antecedents of procedure quality, behaviour quality and dissolution intention are consequences of conflict resolution strategies. The data were collected from April 1 to April 15, 2013. Because this study examined franchise industries from the franchisee perspective, we contacted franchisee store owner and managers located in Seoul and Gyeonggi Province. Interviewers trained contacted a total of 483 franchisees, and 400 franchisees responded. Out of 400 respondents, 2 respondents were deleted due to missing information. Thus, a total of 398 franchisee were used for this study. he data were analyzed using frequency analysis, confirmatory factor analysis, correlation analysis, and structural equational modeling with SPSS 24.0 and Amos 23.0 statistical program. Results - The findings can be summarized as follows: First, franchisor conflict resolution activities have significant effects on procedure quality. Second, procedure quality has a significant effect on behavior quality. Finally, behavior quality has a significant effect on dissolution intention. Conclusions - In this study, we investigated the relationship between conflict resolution behavior, procedural quality, behavior quality and dissolution intention. As a result, the franchisers should strive to resolve conflicts not only in solving simple problems with franchisees, but also in a longer term perspective. We also found that the procedural aspects of resolving conflicts should not be ignored. If the trust and satisfaction of each other increase during the process of resolving the conflict, it will positively affect the satisfaction and trust in resolving the conflict. This is also because it serves to lower the intention of termination. However, there is a limitation that it is targeted only to the restaurant franchise, and it is necessary to study the conflict resolution behavior depending on the type of conflict.

• The Korean Journal of Franchise Management
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• v.8 no.2
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• pp.17-24
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• 2017

Purpose - In recent years, research has been conducted on the conflict resolution strategies of the franchise headquarters and the franchisees, but there is a lack of research on how the power structure and cultural factors play a role in resolving conflicts. From this perspective, this study is to examine the structural relationship between franchisors' cultural orientation and relationship power, and conflict resolution strategies, relationship trust, and relationship performance using. The findings of this study suggest how franchise headquarters should establish long-term relationship with franchisees and share information. Research design, data, methodology - The data were collected from April 1 to April 15, 2013. Because this study examined franchise industries from the franchisee perspective, we contacted franchisee store owner and managers located in Seoul and Gyeonggi Province. Interviewers trained contacted a total of 200 franchisees, and 196 franchisees responded. Out of 196 respondents, 13 respondents were deleted due to missing information. Thus, a total of 183 franchisee were used for this study. he data were analyzed using frequency analysis, confirmatory factor analysis, correlation analysis, and structural equational modeling with SPSS 24.0 and Amos 23.0 statistical program. Results - The results showed that cooperation orientation and relational power of franchisor had significant effects on conflict resolution strategies. Cooperating, obliging, and compromising strategies of conflict resolution strategy had significant effects on relationship trust. Also, relationship trust had significant effect on relationship performance. Conclusions - This study shows that the franchise headquarters and the franchisees share necessary information for common purposes and that continuous two-way communications play an important role in resolving conflicts. In other words, the result of this study suggests that if the franchise headquarters and the franchisee actively consider the position of the other party and strive to achieve the goal, conflict resolution may be more successful. In order to do this, the franchise headquarters will have to consider how to build and maintain continuous communication with the franchisees, and continuous education is also needed so that employees can have a cooperative attitude. However, since the culture of these organizations is not made up of simple staff training and is not formed within a short time, the CEO of the franchisee headquarters should take the lead in establishing a cooperative culture with the merchants over the long term.