• The Korean Journal of Franchise Management
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• v.9 no.2
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• pp.7-16
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• 2018

Purpose - Turnover Intention in the franchise industry is becoming a very important issue. This study examines the structural relationships between organizational justice, emotion, job satisfaction, and turnover intention in the franchise industry. In this model, emotion was classified into two sub-dimensions such as positive and negative emotion. Research design, data, methodology - The sample of this study collected from employees of a food-service franchise company is representative. Copies of the questionnaire along with a cover letter were delivered by a research assistant to the human resources manager or the general manager of the selected food-service franchise firms after they agreed to participate in the study. In order to increase the response rate of the respondents, a small gift was provided to the respondents who completed the questionnaire. A total of 300 questionnaires were distributed and 285 returned responses, 9 responses were not usable due to missing information. Thus, a total of 276 responses were used using structural equation modeling with Smartpls 3.0. Results - The results showed that organizational justice had positive significant effects on positive emotion and job satisfaction. Job satisfaction had negative a significant effect on turnover intention. And negative emotion had positive significant effect on turnover intention. Conclusions - The results of this study provide some implications. If employees feel that the franchise headquarters is fair about the methods and procedures of decision making, resource allocation, information sharing, etc., it means that employees feel better. If the franchise's decision-making processes and methods and results are transparently disclosed and processed in accordance with the internal rules of the company, the employees will be able to fully understand and accept them. The results of this study also show that positive and negative emotions of service-based franchise employees have different effects on job attitude and organizational behavior. In particular, when negative emotions of employees are passed on to others and the results are negative, employees may feel that they are disoriented or wrong. Therefore, the franchise headquarters should try to inspire employees' sense of organizational community, and should pay attention to how to relieve the job stress and the fair distribution of work and rewards.

• Journal of Arbitration Studies
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• v.14 no.2
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• pp.173-198
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• 2004

Recently in Korea, franchise system has been specially used in the distribution industry. However, it also brought up many problems caused by various issues between franchisor and franchisee. The purpose of this article is to review recent trend of the franchise transaction contracts and resolution of the disputes in Korea. And to expand to use of ADR(Alternative Dispute Resolution) system as a practical dispute settlement procedure including mediation and arbitration. Arbitration means a procedure to settle any dispute in private laws, not by the adjudication of a court, but by the award of an arbitrator or arbitrators, as agreed by the parties. Arbitration agreement is a prerequisite for either party to a dispute to commence arbitral proceeding and may be in the form of a separate agreement or in the form of an arbitration clause in a contract and shall be in writing.

• Journal of Distribution Science
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• v.16 no.4
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• pp.35-47
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• 2018

Purpose - This study seeks to find out the factors affecting the performance of franchisees from the franchisor's and franchise's intangible assets. In order to explain the process, this study explores the concept of LMX, Relational Capital, and Decision Rights Delegation. Research design, data, and methodology - To verify the proposed hypotheses, a questionnaire survey was conducted for franchise store owners, and to test the hypotheses, structural equation modeling was established. Results - First, franchisor's intangible assets affect the quality of LMX, but don't affect the relational capital. And the quality of LMX affects the relational capital. In addition, "the effect of delegation of decision rights on relational capital" and "the effect of relational capital on franchisee's performance" were significant. However, the effect of delegation of decision rights on franchisee's performance wasn't significant. Second, the intangible assets of the franchise have a positive effect on the quality of the LMX and the degree of delegation of decision rights, and the quality of the LMX has a positive effect on the delegation of decision rights. Conclusions - This study would suggest operational implications for the formation of vertical and horizontal relationships and the cooperation between the main members of the franchise business.

• 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.

• Journal of Distribution Science
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• v.11 no.8
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• pp.25-30
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• 2013

Purpose - Foodservices have grown to over 60% of the franchise industry. However, despite reaching this high level, the foodservice franchise industry is experiencing severe ups and downs. While factors such as expansion by franchises and the entry of large multinational firms are causing this imbalance, the more serious problem faced by franchisees is the lack of know-how and correct operating procedures. Franchise headquarters should advise franchisees on important matters such as food ingredients, interior design, tableware, and fixtures. However, even though franchise headquarters have the ability to impart such management know-how, this is often a neglected area. Research design, data and methodology - This study was conducted in an industrial environment to present suitable competitive alternatives for foodservice franchises. Empirical analysis was conducted using a sample of 232 people with experience in targeting customers. The main purpose of this study is not to identify and analyze the factors affecting customer satisfaction. Customers of the Food Service Industry to invite contacts until departure for the service flow by identifying the expectations and allow this area by analyzing the resulting measures to enhance the competitiveness has presented. Results - Actual results contact factors affecting the quality of service on customer satisfaction was a significant influence. However, the end of this analysis, the actual customer satisfaction directly affects the quality of service that is only important factor can commit mistakes. Relatively large impact on customer satisfaction, which is relatively independent of the quality factor should be a review of zone of tolerance. In this study, eating phase relative to contact the service customer satisfaction was the most influential. The results, however, zone of tolerance for an area in the waiting and ordering dissatisfaction factors are appearing. And in the course of these services outside the zone of tolerance area is unsatisfactory evaluation is being done. Conclusions - After all, Foodservice, the contact service management for zone of tolerance the top priority should be can be seen. Foodservice contact first in the case of service quality factors caused by the continuous flow of services, so this step-by-step identification needs to be clearer. This, of course, to distinguish between the actual per unit of activity appears to be more difficult to follow, for it seems to need a lot of future complementary. Next is the assessment of customer service quality. Customers remember the experience for the services of a real contact through the assessment and service evaluation clearly emerge as the expected level can be difficult. However, this situation is controlled by the test method cannot be avoided unless there is no limit to the number of leave. Despite these limitations, the next step to contact a service evaluation and analysis have to continue to refine and thereby franchisees for the operation of the store in terms of practical know-how required to provide to the office believe.

• Journal of Distribution Science
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• v.16 no.3
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• pp.33-47
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• 2018

Purpose - The purpose of this study is to derive the performance improvement factors of courier corporations that operate global franchise systems as business strategies through their brands and to determine. Research design, data, and methodology - In the first study, 129 valid questionnaire sheets were analyzed. In the second study intended to determine whether the four performance improvement factors derived in the first study have positive effects on franchisees' business performance, 781 valid questionnaire sheets secured from six GDFFs were analyzed using AMOS analysis. Results - In the first study, four performance improvement factors were derived. In the second study, hypotheses regarding whether the performance improvement factors: leadership, communication, education and training, and brand, have positive effects on franchisees' business performance were tested, and as a result, one hypothesis was rejected and three hypotheses were adopted. Conclusions - The first and largest contribution of this study is that it derived performance improvement factors from GDFFs. The second contribution is that it determined whether the performance improvement factors that were derived have positive effects on franchisees' business performance with tests. The third contribution is that it created significant implications in terms of other studies, research value, and applications in industry fields.

• 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.18 no.5
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• pp.35-47
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• 2020

Purpose: In the highly competitive franchise market, the perceived entrepreneurial passion and emotions of customers are very important, because it impacts on the success of companies. Thus, the purpose of this paper is to suggest how the impact of the franchise entrepreneurial passion and positive emotions on the brand trust and loyalty of customers. Research design, data and methodology: This study analyzes data was collected through questionnaires on customer(n=480) who had visited franchise restaurants. Analysis of used collected data was based on the mix method using quantitative and qualitative comparative analysis. Results: The quantitative analysis results showed inventing passion, developing passion, positive emotions that perceived by customers have a positive impact on brand trust. On the other hand, founding passion did not have an impact on loyalty in quantitative analysis. but when combined with developing passion in qualitative comparison analysis, but when combined with developing passion in qualitative comparison, that became the sufficient condition of high loyalty of customers. Conclusions: The franchisor of the Korean franchise industry is indiscriminately overusing the founding franchisees, causing social problems. In this situation, founding passion can have a negative impact on customers. Therefore, the franchisors must have management capabilities by strictly managing the founding rules of the franchisee and disclosing the corporate vision.

• Journal of Distribution Research
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• v.12 no.1
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• pp.33-63
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• 2007

This study attempted to investigate comprehensively the impact of support and dissensus on economic satisfaction, conflict, trust, and commitment in the franchise system. Data collected from the food and beverage service industry supported all of the twelve hypotheses that were proposed. In accordance with the results, the following conclusions were made: it is very important to establish trust and commitment in a franchise system, and the core means for that would be the enhancement of the economic satisfaction of franchisees through the reinforcement of the franchiser's supports, and the effective management of conflict between a franchiser and its franchisees through dissensus settlement.

• 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.