• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.12 no.3
• /
• pp.177-190
• /
• 2017

This study investigates the effects of franchisors' characteristics including brand reputation, training and product related support, franchisees' characteristics including store location and management on the performance and recontract intention of franchisees in bakery franchise industry. Also, this study examine the moderating effect of CEO experience of franchisees among the franchisors' and franchisees' characteristics, and performance. To empirically test these relationships, data were collected from 386 respondents who are franchisees in the bakery franchise sector. In the verification of hypotheses, the structure equation modeling(SEM) is used. The results of this study are as follows. First, franchisors' brand reputation, training support, and franchisees' locational factor have significant effects on the financial performance of franchisees positively. However, franchisors' product related support and franchisees' management of the store have not significant effects on the performance. Second, the performance of franchisees has positive effect on the recontract intention. Third, the moderating effect of CEO experience is only significant in the relationship between franchisors' training support and the performance. Based on the findings, this study suggest the importance of building a good brand image and superior training system for franchisors to improve mutual ongoing growth. Also, franchisors should determine whether nascent franchisee entrepreneurs have CEO experiences to further improve performance. If they do not have related experiences, both opening and ongoing training supports of franchisors and the efforts of franchisees towards learning are required. Finally, this study suggest that both franchisors and franchisees should accurately analyze the conditions of possible locations and establish strategies to select beneficial location before starting a franchise business.

• The Journal of the Korea Contents Association
• /
• v.17 no.3
• /
• pp.408-420
• /
• 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 the Korea Academia-Industrial cooperation Society
• /
• v.11 no.9
• /
• pp.3210-3222
• /
• 2010

Franchise Industry has a big portion in national economy, and contributes to protecting self-employments and making jobs. One of good way to increase the success of franchise business is operating some franchisor's company owned outlets before franchising. The purpose of this research is to understand the effects of the company owned outlets on franchisor's current performance. According to the result, the operation term, scale, and location of company owned outlet increase the legitimacy of franchisor. The operation term, and scale of company owned outlet increase the efficiency of franchisor, And both legitimacy and efficiency increase of franchisor's current achievement.

• Journal of Distribution Science
• /
• v.4 no.1
• /
• pp.141-160
• /
• 2006

The esthetic center skips over the dimension of simply theoretical knowledge by the specialization, segmentation, and gentrification and the importance of the technical education which introduced into the spot experienceis raising its head. And the esthetic center's importance which copes with the environment changing actively is being cognized. The franchisee system of esthetic shows that while the domestic market is opened, the appearance of foreign famous brand-centered is increasing rapidly. According to this kind of trend, every kind of mediums will not stop the classified ad of franchisee and it will be recognized as the promising sector. Especially, the situation of franchisee is that franchisors and franchisees in the limited relationship and just plan the growth, so the success possibly can be very high. The diffusion of franchisee system and the study about the franchisee are developed on the diverse view points. But still now, the study is just formed from the enterprise's success and the franchisors view point, the study about the franchisees dimension is very small. But it is also very important to exam the decision factors of franchisees success because the franchisors result of franchisee system will come out with franchisee performance totally. In this paper, it will actually proof if the decisive factors that exert influence on the franchisee performance in the franchisee dimension, exert influence on the franchisee performance in substance; and exam what kind of relationship the franchisee performance have with the franchisors and recontract intention. According to this, we can draw out the rest decision factors of improving the franchisee performance, and also show the strategic implication of franchisee efficient marketing.

• Journal of Distribution Research
• /
• v.13 no.3
• /
• pp.101-125
• /
• 2008

This research suggests an ideal role between franchisee and franchisee for survival and development of the Korean franchise business by identifying causal relationships between entrepreneurship of franchisees and their business performance. Besides, when considering multi-dimensional features of a franchise system, this study aims to show that the market orientation of the franchisee and the relationship commitment between franchisee and franchisee will play an important mediating role to achieve a better business performance. Thus specific causal relationships among sub-dimensional constructs of entrepreneurship and market orientations were investigated. They are innovativeness, risk-taking propensity, pro-activeness, information creation, intelligence generation, intelligence dissemination, response design, response implementation. The results demonstrate that pro-activeness of franchisee plays a crucial role for franchisee's business performance. It was noted that franchisor's market orientation and innovativeness is also important for high market orientation of franchisor. The higher the market orientation of franchisor was, the higher relationship commitment of franchisee was formed. By identifying the mediation effect of relationship commitment and market orientation of franchisor, this paper showed that relationship commitment positively affect the improvement of franchisee's business performance. Above all, it should be noted that this research empirically identified the relationship between franchisee's entrepreneurship and business performance that most of the previous researchers have ignored. Furthermore, the analysis was conducted at sub-dimensional construct level. It is expected that empirical results from this study will be able to provide a meaningful framework and theoretical basis for future research on franchise, entrepreneurship and market orientation.

• The Korean Journal of Franchise Management
• /
• v.1 no.1
• /
• pp.1-17
• /
• 2010

This study aims to analyze the relationship between the expectation of franchisees to their franchisers before contracting and perceived performance after actually operation. The analysis data was collected from 789 franchisees located in Seoul and Gyeonggi-do of South Korea. The findings are as followings: first, the gap between expectation of franchisees and perceived performance was negative and it becomes an necessary for franchise managers to manage the expectation of franchisees by using various effective marketing strategies. Second, the gaps were different among different franchise industrial classifications and the gap in the food-service industry is the largest.

• Proceedings of the Korea Technology Innovation Society Conference
• /
• 2017.05a
• /
• pp.713-729
• /
• 2017

프랜차이즈 산업은 전문 창업시스템을 구축한 가맹본부가 사업 초기부터 가맹점의 영업활동을 지원하고 사업 노하우(know-how) 및 경영 기술을 지원 해줌으로서 창업 활동을 용이하게 도와주고 있다. 프랜차이즈 가맹점 창업의 장점은 브랜드 인지도를 활용한 영업활동으로 창업초기부터 일정한 수익을 보장 받을 수 있는 이점이 있어 소상공인의 관심이 매우 높다. 본 연구에서는 프랜차이즈 지원서비스인 가맹본부의 상품공급 수준, 고객관리 지원, 슈퍼바이저지원, 교육훈련 지원, 마케팅지원이 가맹점주의 경영성과에 어떻게 영향을 미치는지를 연구함으로 써, 가맹본부와 가맹점간의 서로 상생할 수 있는 지원서비스에 대한 전략적인 방법과 기업가정신과 개인 특성이 경영성과에 미치는 영향을 분석하는 것이다.

• Journal of Distribution Research
• /
• v.8 no.1
• /
• pp.47-67
• /
• 2003

The purpose of this study is to investigate three issues. First, we investigated four control mechanisms that might increase the franchisee's perception of franchiser commitment: a franchiser's TSIs, relational norms, monitoring, and qualification programs. Second, we proposed that appropriateness and efficacy of these control mechanisms in fostering franchiser commitment might be changed over the relationship life cycle. Third, we examined how bureaucracy and levels of franchiser's commitment related to relationship satisfaction. Through empirical analysis, research results indicate that a franchiser's TSIs and relational norms are positively associated with the franchisee's perception of franchiser commitment. In detail, what increase franchisee's perception of franchiser commitment in short-term relationship are franchiser's TSIs but relational norms are more important in the long-term relationship. In addition, the results show that franchisee's perception of franchiser commitment, participation and formalization are positively related to relationship satisfaction.

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

• The Korean Journal of Franchise Management
• /
• v.5 no.1
• /
• pp.65-84
• /
• 2014

The purpose of this study is to review the theories and cases of performance sharing in the franchise industry to present a method for more effective franchise performance-sharing. To that end, this study reviewed the theory on resource dependence and the theory on inequality to describe the performance-sharing between the franchisor and the franchisee and their relationship. It also looked at the cases of a week-in cooler system at 'Beer Market', the allocation of fees for alcoholic beverage sales to franchisees, the scholarship program of 'Onigiri and Ikyudon' and 'Bonsamo' which is a franchisees' committee for Bonjuk to introduce examples of performance-sharing. Through a theoretical review and case review, this study presents five types of methods for performance-sharing. First, 'the sharing of core competence by the franchise company; second, 'the establishment of a royalty culture'; third, 'scientific analysis of markets and establishment of a revenue forecast system'; fourth, 'reinforced financial support from the franchisor'; and lastly, 'the positive application of franchisees' committees'. Such methods are expected to provide a groundwork for mutual benefit and co-prosperity between franchisor and franchisee.