• The Korean Journal of Franchise Management
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• v.10 no.2
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• pp.19-32
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• 2019

Purpose - This paper aims to investigate the mediating effects of relationship fairness factors between franchisor's support services and performance(re-contract intention) in food service franchise. More specifically, fairness was measured into distributive, procedure, interaction, and information, franchisor's support service was divided into pre-start support services (initial support services) and post-start support services (continued support services), and performance (re-contract intent) was measured using 3 items such as re-contract, contract extension, and recommendation. Research design, data, and methodology - The population for the survey is the head of franchises in the metropolitan area (Seoul/Gyeonggi), which operates a restaurant franchise, and samples included a wide range of overseas/domestic brands and regions. The survey was conducted from August 1 to September 30, 2018 through the survey agency. The survey was conducted together with a telephone interview and a direct visit by the investigator. A total of 205 questionnaires were collected and retrieved, 4 questionaires containing missing information were excluded and 201 responses were used for analysis. Results - The results shows that franchisor's initial support services have significant positive effects on procedural, interpersonal, and informational relationship fairness, and continuous support services have significant positive effects on distributive, procedural, interpersonal, and informational relationship fairness. This study also shows that informational and procedural fairness have significant positive effects on performance(re-contract intention). Finally, continuous services a significant positive effect on performance(re-contract intention). Conclusions - The results show that franchisor make a manual, and should improve fairness through regular investigation whether support services was executed as promised in the manual after franchisee operation. In addition, information fairness and procedural fairness have been shown to increase performance(re-contract intention). These results mean that the franchisor's headquarters should provide product and service support for the merchant in accordance with the manual and management policy to reduce asymmetry in information and improve procedural fairness to enhance performance(re-contract intention).

• The Korean Journal of Franchise Management
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• v.12 no.4
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• pp.13-23
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• 2021

Purpose: This study aimed to derive clues for the franchise industry to overcome difficulties such as various legal regulations and social responsibility demands and to continuously develop by analyzing the research trends related to franchises published in Korea. Research design, data and methodology: As a result of searching for 'franchise' in ScienceON, abstracts were collected from papers published in domestic academic journals from 1994 to June 2021. Keywords were extracted from the abstracts of 1,110 valid papers, and after preprocessing, keyword analysis, TF-IDF analysis, and topic modeling using LDA algorithm, along with trend analysis of the top 20 words in TF-IDF by year group was carried out using the R-package. Results: As a result of keyword analysis, it was found that businesses and brands were the subjects of research related to franchises, and interest in service and satisfaction was considerable, and food and coffee were prominently studied as industries. As a result of TF-IDF calculation, it was found that brand, satisfaction, franchisor, and coffee were ranked at the top. As a result of LDA-based topic modeling, a total of 12 topics including "growth strategy" were derived and visualized with LDAvis. On the other hand, the areas of Topic 1 (growth strategy) and Topic 9 (organizational culture), Topic 4 (consumption experience) and Topic 6 (contribution and loyalty), Topic 7 (brand image) and Topic 10 (commercial area) overlap significantly. Finally, the trend analysis results for the top 20 keywords with high TF-IDF showed that 10 keywords such as quality, brand, food, and trust would be more utilized overall. Conclusions: Through the results of this study, the direction of interest in the franchise industry was confirmed, and it was found that it was necessary to find a clue for continuous growth through research in more diverse fields. And it was also considered an important finding to suggest a technique that can supplement the problems of topic trend analysis. Therefore, the results of this study show that researchers will gain significant insights from the perspectives related to the selection of research topics, and practitioners from the perspectives related to future franchise changes.

• Journal of Distribution Science
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• v.12 no.4
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• pp.11-22
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• 2014

Purpose - The domestic franchise industry has made significant contributions to industry such as investment, employment, and community economy development, facilitating growth potential. The franchise industry provides management knowhow transfer between parent companies and franchisees as per contracts addressing use of business signs, franchisees' independent position, franchisor support, and royalties to be paid to the franchisors. However, many franchisors lack management knowhow and provide insufficient support because of poor control of franchisees and not having a systematic approach to support. This results in dissatisfied franchisees and failure to establish long-term relationships. Few studies have examined relational commitment and/or re-contract intention by support resources between franchisors and franchisees, despite a considerable output of theories and studies of the growth of the franchise industry. The purpose of this study, therefore, was to examine the effects of the ability to provide resources on relational commitments and re-contract intention, and to suggest causal relationships and implications. Research design, data, and methodology - The subject was domestic franchisors registered with the Association of Franchise with more than 50 franchisees. Franchisees under contract for 2 years and considering re-contract of their franchise 2 years later were used. The subjects totaled 300 franchisees in Seoul. A questionnaire survey was used to investigate the subject of franchisees' concessions during the 10 days from November 21, 2013 to November 30, 2013. After excluding 16 surveys with poor answers, 284 responses were finally used. Four areas and 44 questions were used. A nominal scale was used for four common characteristics questions including gender, ages, educational background, and franchise managing time. Questions regarding ability, relational commitment, and re-contract intention made use of a Likert 5-point scale. Data coding and data cleaning were used. SPSS 18.0 was used as follows. First, frequency analysis was done to investigate demographic characteristics. Second, exploratory factor analysis was done to verify validity of testing tools, and Cronbach's α coefficient was used to verify reliability. Third, correlation analysis and multiple regression analysis were done. An exploratory factor analysis was done to verify validity of concepts. A correlation analysis was done to test relationships between the variables, and multiple regression analysis was done to verify franchisor's ability, franchisees' relational commitment, and re-contract intention. Results - The following were the outcomes. First, store operation management, finance operation management, and human resource management affected the calculated bond. Second, store operation management and finance operation management affected the emotional bond. Third, store operation management, finance operation management, human resource management, and marketing management affected the prescriptive bond. Fourth, calculated bond and prescriptive bond had an effect on re-contract intention. Conclusions - As stated above, in franchise management, parent companies' offer and instruction of core competence to their franchisees as an information resource could improve the relational bond by helping them grow together through the resource sharing. Consequently, core competence factors were promoting factors that could improve franchisees' re-contract intention for a long time.

• Journal of Distribution Research
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• v.17 no.5
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• pp.1-23
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• 2012

The conflict between major corporations and small and medium-sized businesses is being aggravated, the trickle down effect is not working properly, and, as the controversy surrounding the effectiveness of the business limiting system continues to swirl, the plan proposed to protect the business domain of small and medium-sized businesses, resolve polarization between these businesses and large corporations, and protect small family run stores is the suitable business type designation system for small and medium-sized businesses. The current status of carrying out this system of selecting suitable business types among small and medium-sized businesses involves receiving applications for 234 items among the suitable business types and items from small and medium-sized businesses in manufacturing, and then selecting the items of the consultative group by analyzing and investigating the actual conditions. Suitable business type designation in the service industry will involve designation with priority on business types that are experiencing social conflict. Three major classifications of the service industry, related to the livelihood of small and medium-sized businesses, will be first designated, and subsequently this will be expanded sequentially. However, there is the concern that when designated as a suitable business type or item, this will hinder the growth motive for small to medium-sized businesses, and designation all cause decrease in consumer welfare. Also it is highly likely that it will operate as a prior regulation, cause side-effects by limiting competition systematically, and also be in violation against the main regulations of the FTA system. Moreover, it is pointed out that the system does not sufficiently reflect reverse discrimination factor against large corporations. Because conflict between small to medium sized businesses and large corporations results from the expansion of corporations to the service industry, which is unrelated to their key industry, it is necessary to introduce an advanced contract method like a master franchise or local franchise system and to develop local small to medium sized businesses through a franchise system to protect these businesses and dealers. However, this method may have an effect that contributes to stronger competitiveness of small to medium sized franchise businesses by advancing their competitiveness and operational methods a step further, but also has many negative aspects. First, as revealed by the Ministry of Knowledge Economy, the franchise industry is contributing to the strengthening of competitiveness through the economy of scale by organizing existing individual proprietors and increasing the success rate of new businesses. It is also revealed to be a response measure by the government to stabilize the economy of ordinary people and is emphasized as a 'useful way' to revitalize the service industry and improve the competitiveness of individual proprietors, and has been involved in contributions to creating jobs and expanding the domestic market by providing various services to consumers. From this viewpoint, franchises fit the purpose of the suitable business type system and is not something that is against it. Second, designation as a suitable business type may decrease investment for overseas expansion, R&D, and food safety, as well negatively affect the expansion of overseas corporations that have entered the domestic market, due to the contraction and low morale of large domestic franchise corporations that have competitiveness internationally. Also because domestic franchise businesses are hard pressed to secure competitiveness with multinational overseas franchise corporations that are operating in Korea, the system may cause difficulty for domestic franchise businesses in securing international competitiveness and also may result in reverse discrimination against these overseas franchise corporations. Third, the designation of suitable business type and item can limit the opportunity of selection for consumers who have up to now used those products and can cause a negative effect that reduces consumer welfare. Also, because there is the possibility that the range of consumer selection may be reduced when a few small to medium size businesses monopolize the market, by causing reverse discrimination between these businesses, the role of determining the utility of products must be left ot the consumer not the government. Lastly, it is desirable that this is carried out with the supplementation of deficient parts in the future, because fair trade is already secured with the enforcement of the franchise trade law and the best trade standard of the Fair Trade Commission. Overlapping regulations by the suitable business type designation is an excessive restriction in the franchise industry. Now, it is necessary to establish in the domestic franchise industry an environment where a global franchise corporation, which spreads Korean culture around the world, is capable of growing, and the active support by the government is needed. Therefore, systems that do not consider the process or background of the growth of franchise businesses and harm these businesses for the sole reason of them being large corporations must be removed. The inhibition of growth to franchise enterprises may decrease the sales of franchise stores, in some cases even bankrupt them, as well as cause other problems. Therefore the suitable business type system should not hinder large corporations, and as both small dealers and small to medium size businesses both aim at improving competitiveness and combined growth, large corporations, small dealers and small to medium sized businesses, based on their mutual cooperation, should not include franchise corporations that continue business relations with them in this system.

• The Korean Journal of Franchise Management
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• v.13 no.2
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• pp.1-15
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• 2022

Purpose: The globalization of the Korean restaurant franchise industry differs from the business performance of enhancing the brand image and customers' intention to revisit depending on the degree of localization marketing. Therefore, it is necessary to consider the extent to which the localization marketing activities of overseas Korean restaurant franchise companies affect the customer's perception. This study aims to investigate the effects of localization marketing (Localized Menu, Localized Price, Localized Service Experience, Localized Promotion, Localized Physical Environment) of Korean restaurant franchise companies on customer revisit intention. Research design, data, and methodology: For this study, 150 questionnaires using local Korean restaurants in Beijing, China, were analyzed using SPSS Ver.21 and AMOS Ver.22. Result: It was confirmed that the localized menu, localized service experience, and localized physical environment all affect the intention to revisit customers. Based on these verification results, if overseas franchises fully recognize localization marketing, which is an important factor for local business success, and establish localization strategies, they can gain an edge in competition with local Korean restaurants or restaurant franchises founded by locals. There may be a higher probability that However, it was found that localization price and localization promotion had no mediating effect of brand image between revisit intention and revisit intention. It was found that it had no effect on the degree of inquiry and had a negative effect. Conclusions: Due to the impact of the COVID-19 pandemic, there have been many changes in the domestic and overseas food service industry over the past two years. Therefore, in future research, it is necessary to study the localization of overseas Korean restaurant franchise companies that are more multidimensionally subdivided. Various measures of customized localization marketing for optimal regional characteristics should be developed and applied to enhance customer revisiting and brand image of Korean restaurant franchise companies entering overseas. In the future, this study will be meaningful data for the establishment of localization marketing (Localized Menu, Localized Price, Localized Service Experience, Localized Promotion, Localized Physical Environment) strategies for Korean restaurant franchise companies that consider overseas expansion or have already entered.

• The Korean Journal of Franchise Management
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• v.3 no.1
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• pp.46-72
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• 2012

Currently, the service industry share in domestic industry is increasing. Especially the size and marketability of the food service industry, which satisfies with basic human desire, is growing significantly. In this food industry, the coffee industry is recognized as a different area from the traditional food industry. The age of instant coffee at low price has gone. Today, more and more customers want to drink more delicious coffee and coffee that is good to their bodies. Especially as individualism has been rambling, more and more people enjoy individualism and want their personal space. This is why coffee speciality stores have been universalized. Also, as coffee speciality stores have been generalized, their own service quality is necessary and they should satisfy and affirm their loyalty to the customers in line with the enhancement of service quality. The purpose of this research is understanding of the impact of coffee specialty shop's service quality on affective commitment and repurchase intentions. The results of an empirical study in this research are as follows: First, compassion among the execution factors of coffee specialty shop's quality has a positive effect on both of affective commitment. But typicality and reactivity don't. Second, affective commitment have a positive effect on repurchase intentions. With a base of the above research result, we should comprehend that another service quality factor exists compared to other dining-out industry and establish marketing strategies in order to contribute to enhance repurchase intentions for the customers.

• Journal of Distribution Science
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• v.9 no.2
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• pp.49-59
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• 2011

A franchise can be said to be the main method of distribution and marketing. It appears to be the future of the retail industry and is one of the world's fastest growing businesses sectors, as many policy reports and research results have acknowledged. Korea's franchise industry began in the 1970s, spread out into many areas (including food services, retail, and the service industry), and has grown by over 10% each year ever since. The industry's influence on the national economy becomes ever greater. Although the size of the franchise industry is expected to grow as it spreads and as the government expands its support, it has not yet attracted much academic interest. Research has so far been very fragmented. The main interest has been the relationship and conflicts between the head offices and the affiliates. No study has yet occurred on whether the concepts of satisfaction and intent to conclude a contract directly affect the success or failure of the affiliates. Few studies have empirically inquired into the demographic characteristics and abilities of the affiliates that significantly affect their results. Domestic franchise industries must prepare to leap from quantitative to qualitative growth. Most important is the need for affiliate headquarters and affiliates to build confidence between them. A friendly and reliable relationship between affiliate headquarters and affiliates will eliminate distrust from the franchise and maintain a healthy franchise system. This study suggests that current and prospective heads of affiliation should concentrate not on attracting affiliates but on investment and techniques of affiliate support. They should work on the reinforcement of brand power, the appropriate affiliate business environment, systematic education/training, taking burdens off the affiliate business persons, consolidating the relationship with the affiliate business persons, marketing mix factors (e.g. products, price conditions, logistics and shipping services, promotion, supervising and supervisor, operation procedures/processes, and material evidence); these all greatly affect the success or failure of the affiliate business. Supporting the affiliates is an important factor that enhances their results and satisfaction and consequently increases the positive recommendations to others and the ratio of recurrent conclusions of contracts, which ultimately generate the growth of the franchises. In addition, it is suggested that prospective franchise founders should make every effort to choose a good head office since the characteristics of the head office greatly influence the success of the affiliates. This study is significant in that it grasps the characteristics of the head office of affiliation and of the affiliates that influence affiliate results in ways not yet academically attempted.

• Archives of design research
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• v.16 no.1
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• pp.169-180
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• 2003

Multinational brands have rapidly penetrated into the domestic dining business and their brands are increasingly recognized by Koreans. Considering fast-food as a kind of brand product, we attempt to investigate recognition of brands and association by images with the focus on visual identity. The economic value has been reevaluated with more attention on brand images and brand identity. The purpose of the current paper is to find out the meaning of brand association in the fast-food industry. Fast-food business has been rapidly increasing thanks to quick sonics, convenience, relatively low price, equalized quality of food and service. Most fast-food restaurants are run under franchised system. This helps enhance the recognition of brands among customers. We intend to see whether there is significant relationship between customers' preference of brands and brand images. We also aim to seek for their problems of identity in the merchandising process for brand colors. We hope to help develop Korean franchise industry by asking how association by visual Images such as colors and figures of such brands takes place.

• Culinary science and hospitality research
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• v.20 no.2
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• pp.183-198
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• 2014

This study aims to suggest useful information for tteokbokki franchise businesses to enter foreign markets by market testing and surveying preferences of foreign consumers with various kinds of tteokbokki. For this research, a survey was conducted from July 16 to August 20, 2012, targeting the people who live in Beijing, Tokyo, Singapore. The data was collected and analyzed using SPSS for Windows Version 18.0. The relationship between the general details of consumers and the results of the market test were analyzed using canonical correlation analysis. Research results and utilization plans are expected to use for improving the image of the country and ripple effects on exporting agricultural and fishery products, along with the effect of increasing spread of overseas personnel export and domestic Korean overseas supply of cultural content. Nurturing restaurant franchise business, creating jobs, and contributing to the increase in the income of the rural economy are also expected. Fermented tteokbokki franchise business should create new added value. The development of fermented tteokbokki will build a new culture of consumption, expand consumption, academic cooperation and joint technology development, and activate employment linked. Consequently, it is necessary to understand eating habits of local consumers from a variety of perspectives such as texture, taste, and colors of sauce when globalizing Korean food.

• Journal of Distribution Science
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• v.9 no.3
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• pp.47-54
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• 2011

This paper presents exploratory research on consumer awareness and attitudesabout organic food, for which consumer demand continues to increase the paper also assesses consumers' organic food distribution channel preferences. By conducting a literature review, a case study has been carried out in order to glean customer behavior, market condition and typesof distribution channels, and development of specialty stores for organic foods. The early research indicates that consumer awareness and customer attitudes toward organic food are mostly positive however, organic food's high price, as well as a lack of organic food stores, cause a negative effect on consumers' purchase intention. Secondly, the U.S. organic food retail channel consists of such mainstream supermarket/grocery stores and leading natural and organic food supermarket chains as Whole Foods, Trader Joe's, and Sunflower Farmers Market. For the current retail distribution of organic food in Korea, off-line stores are composed of direct management stores and franchise chains. Most of the organic food retail distribution operates through the Internet shopping mall, and are commonly located at retail distribution centers as multi-channel, shop-in-shop stores. Moreover, unlike in the U.S., association and consumers' cooperatives (Co-Ops), and such other member-direct retail stores as Hansallim, iCOOP, Nature Dream,and online shopping malls, are all active in Korea. Thirdly, as a result of an analysis of the present state of the organic food retail channel, as well as building a case for organic food specialty stores, the distinctive featuresand rapid growth of such unique organic food stores as Whole Foods Market, or Trader Joe's successful downsizing strategies, as well as Sunflower Farmers Market low-price approach, show steady industry growth. Moreover, as a result of a case studyof such domestic representative organic food specialty stores as "Olga" and "Chorokmaeul," a similar management style to the United States' "Whole Foods Market" and "Trader Joe's," respectively, can be seen. Similar to the U.S. market, Korean organic food markets should also implement active retail distribution opportunities, allowing consumers to select from various diverse and differentiated choices. In order to accomplish this goal, it is necessary to prepare such measures as sustaining reasonable prices, securing various suppliers for unique products,and improving consumer trust through advertisement strategies that are suitable for each company's branding processes.