• Culinary science and hospitality research
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• v.12 no.4 s.31
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• pp.46-62
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• 2006

This study researched unequal trades and analyzed the difference of legal relation control between the franchisor and the franchisee in foodservice industry. The purpose of this study was the preparatory process for basic data to establish a statute law for the franchisee in foodservice industry. We made up a questionnaire for 53 franchisees in March 2004 and analysed spss 10.0. This result was as follows. First, the special office was needed for publicity activities of law related franchise and the investigation of a right in the written contract for a franchisee. Second, there should be the conformation and objective criteria of monopolistic goodwill in legal proceedings. Third, the larger the scale of franchisees was, the less efficiently the conflicts between franchisors and franchisees were controlled.

• Asian Journal of Business Environment
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• v.1 no.1
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• pp.5-8
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• 2011

This study has been conducted by focusing franchisor's leadership style, franchisee's followership, group-efficacy and their trust in order to achieve positive integration of the franchise system. The key results of empirical examination on the moderating effect of group-efficacy and trust between leadership style proposed by Path-Goal Theory and followership has been found as follows. First, franchisors should be showed their leadership style to fit their mutual business situation. Second, Franchisors and franchisees will be found many ways to increase level of franchisee's group-efficacy. Third, Franchisors will be obtained trust from their own franchisees. These efforts will be given high level of franchisees' trust and group-efficacy. As a result, positive integration of the franchise system will both enhance their competitiveness.

• The Journal of the Korea Contents Association
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• v.17 no.3
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• pp.408-420
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• 2017

A franchisee owner, as an entrepreneur who is independent from a franchisor, has the greatest influence on the success of franchisee business. The effect of the franchisees' entrepreneurship on their performance can be different from that of self-employed business owners, due to the fundamental nature that the franchisor and franchisees share a standardized operation and business risks. Therefore, the purpose of this study is to demonstrate whether or not the relationship between the entrepreneurship and the performance, which has been popularized in general, is displayed in franchised stores as well. The current study analyzed the influence of innovativeness, risk-taking, and proactiveness on franchisees' performance based on the samples from 109 Small Size Educational Services franchisees. The results show that the franchisees' proactiveness is the only variable that affects the performance while the effect of the other variables was not significant. These results make implications that, for their business success, franchisee owners should be proactive in their target market, without compromising the quality of franchisor's standardized products and services by being innovative and risk-tolerant.

• Journal of Distribution Research
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• v.17 no.5
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• pp.25-38
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• 2012

In general, commercial franchisors prefer franchisees with high entrepreneurship and business capability. However, these entrepreneurial franchisees with high capability tend to depend less on franchisors. Although franchisees with less entrepreneurship and low capability need intensive care from franchisors, some of them result in business failure due to improper supports from incapable franchisors. This paper suggests several propositions regarding social franchising's role in supporting the low-income urban people on the premise that social franchising or micro-franchising provides implications for franchisor strategic orientations for franchisees with little capital. Through literature review about social franchising and micro franchising, some implications are drawn. Many social enterprises use franchising to get growth and sustainability, because franchising allow social enterprise to expand its scale and to achieve economies of scale despite of its non-commercial and social purpose. And continuous support and training undertake the most important role to achieve its social purpose. In commercial franchising, especially small business format franchising sector, franchisor have to consider not only commercial purpose but also social responsibility because of low capability and less entrepreneurship of franchisee. If franchisor pursue only own profit, this can increase the conflict and franchise system failure. So far many franchisors are concerned with own profit and external growth. But it is necessary to consider symbiotic relationship, social responsibility and sustainability more for the sake of desirable industrial growth in the future.

• The Korean Journal of Franchise Management
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• v.11 no.1
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• pp.7-17
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• 2020

Purpose - As the competition in the foodservice franchise industry and the market becomes fierce and the entry barrier is lowered, the foodservice franchisor and franchisees strive to increase their competitive advantage in the market. Therefore, the franchisor and franchisees use experience management strategies to enhance the positive experiences of customers visiting the stores. In this regard, this study examines the effects of customer-oriented activities (physical-, social-, health-, and service-oriented activities) on utilitarian and hedonic values, and loyalty using stimulus-organism-response (S-O-R) model and value-expectancy theory. Research design, data, methodology - The data were collected from panels of online survey company, who visited a foodservice franchisee within last month. The survey was conducted for about 15 days from March 7, 2019 to March 21, 2019, and about 3,500 e-mails and messages were distributed to ask for the survey. A total 412 responded and completed the questionnaires. Of the 412 completed questionaires, 12 were discarded due to missing and misinformation data and 400 were retained for further data analysis. Results --The results showed that social oriented activities, health oriented activities, and service oriented activities had positive effects on hedonic value, while physical oriented activities did not have a significant effect on hedonic value. Health oriented activities and service oriented activities had positive effects on utilitarian value, while physical oriented activities and social oriented activities had no significant effects on utilitarian value. Hedonic and utilitarian values also have a positive effect on loyalty. Conclusions - First, food service franchises should provide services and menus in consideration of the health of customers. When a customer visits the store, franchisee should provide more health-oriented food or materials and clean and comfortable conditions so as not to threaten the health of the customer. Second, the food service franchise must build a service-oriented system. Foodservice franchisor need to provide continuous service training not only to the franchisees, but also to the employees of the franchisees. Third, franchise should design a store where customers can form social exchanges through providing various information exchange to customers and making the store as a local community center.

• Journal of the Korea Convergence Society
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• v.13 no.4
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• pp.63-70
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• 2022

Due to the recent changes in the education market and Corona, Consumers have moved to the tutoring and online learning markets, and the large-scale education service franchise business is reorganized into a small-scale franchise, a business model that maximizes the profit structure from a position where sales are important. Recently, a new learning balance model that can provide individualized services from teacher-centered to student-centered, motivate students is required. In this paper, we propose a new mathematical franchise model (K-MODEL) that can improve a company's profit structure while satisfying the recent education trends and consumer needs from the point of view of the franchise. K-MODEL expects franchisor and franchisees to have a stable profit structure by developing differentiated content and services, learning and operating processes, and various programs to improve learning achievement.

• Korea Trade Review
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• v.42 no.5
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• pp.1-18
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• 2017

This study focuses on the recent case held as to control in franchising. On the basis of analysis of the recent case, it examines the validity of the decision and suggests practical advice. The extensive judicial precedent has held that the franchisor and the franchisee possess the independent contractor relationship. But Williams v. Jani-king of Philadelphia Inc. suggest the conversion of the franchisee's status to an employees instead of an independent contractor. Franchisees allege that they were wrongly classified as independent contractors instead of employees because Jani-King had the ability to control the manner in which franchisees perform their day-to-day tasks. The appeal court held that Pennsylvania law does not distinguish between controls put in place to protect a franchise's intellectual property and controls for other purposes, and a franchisee may be an employee or an independent contractor depending on the nature of the franchise system controls. However, some degree of controls by the franchisor over the franchisee is inherent in the franchise and may even be mandated by the federal and state laws. Moreover, the appeal court affirmed that the franchise agreement, policies manual, and training manual alone could be sufficient to resolve the employment status. But it seems appropriate that the right to control on the documents is considered with the actual control.

• The Korean Journal of Franchise Management
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• v.1 no.1
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• pp.65-85
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• 2010

The key success factors for Franchise Enterprise as a virtual company which is established based on franchise system are the competitiveness of sub-systems in franchise system such as franchisor, franchisee, vendor(supplier), and customer, and to sustain the symbiotic relationship among sub-systems. In this regard, evaluating franchise system is considered to be implemented in different contexts and methods comparing with extant evaluation system in franchise business which is more focused on the relationship between franchisor and franchisee. The flagship role of establishing franchise system is to be franchisor system, however, the symbiotic relationship among other sub-system including franchisee, vendor, and customer leads to successful Franchise Enterprise. The purpose of this study is to research existing evaluation systems for franchise business and to explore the model of evaluating franchise system, what is called, "Symbiosis Index".

• Journal of Distribution Research
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• v.14 no.2
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• pp.31-66
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• 2009

This study investigates the effects of supervisors' leadership style on franchisees' trust and commitment in a franchise system. We classified leadership into two styles - transformational leadership vs. transactional leadership, and it was hypothesized and tested that these two leadership styles have differential effects on trust and two different types of commitment - calculative commitment vs. affective commitment. A questionnaire survey was conducted to collect the data and a total number of 184 Korean franchisees in diverse industries participated to the survey. Using a structural equation modeling, we confirmed some differential effects of the two leadership styles. Transformational leadership was found to have positive effects on franchisees' trust in and affective commitment to the franchisor, while it has no effects on calculative commitment. On the other hand, transactional leadership was positively related to calculative commitment to the franchisor. But it had no effects on trust and affective commitment. Meanwhile, we also found that trust positively affects on both types of commitment. The results of this study suggest that the quality of franchisor-franchisee relationships can be improved by supervisor's strong leadership, especially by transformational leadership, and that transformational leadership, when compared to transactional leadership, is more important for developing a long-term and stable franchisor-franchisee relationship.

• Journal of Distribution Research
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• v.13 no.2
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• pp.1-27
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• 2008

In a power-asymmetry relationship like franchise system, a high dependent franchisee must often rely on its powerful partner. Therefore, in order to build up 'win-win' systems, therefore channel members should increase trust and commitment each other to enhance the relationship quality to sustain long-term cooperative relationships. First of all, to increase the relationship quality in franchise system, franchisor should increase franchisee's perception of the powerful franchisor's justice. The point of this research, I established basic hypotheses and comparative hypotheses to examine franchisor's behavior what franchisee expected which influences on franchisee's attitude and behavior in power - asymmetry relationship in franchise system. For the purpose of the empirical testing, managers of franchisee in the food service industry of Korea had been selected and analyzed, and major findings in this study as follow: First, the relational norm between franchisor and franchisee increased both distributive justice and procedural justice, especially relational norm had more effect on procedural justice than distributive justice. Second, distributive justice increased both economic commitment and social commitment while procedural justice just increased social commitment only but economic commitment. So, on the relational commitment, distributive justice was more important element than procedural justice. On the other hand, procedural justice had indirect effect on economic commitment through distributive and social commitment.