• KDI Journal of Economic Policy
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• 제44권1호
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• pp.49-75
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• 2022

This paper analyzes how franchise contract conditions are influenced by business structures as well as how contract conditions affect producer surplus by utilizing Korean franchise Information Disclosure Documents for the years 2014-2016. We find that franchise fees tend to increase in line with increases in the numbers of direct stores or the business period. Accordingly, it would be reasonable to check whether the franchise fee is excessive compared to the amount of reputation capital rather than to criticize the absolute level of the franchise fee. Regarding royalty contracts, the larger the discount in the raw materials purchase is, the higher the initial royalty is. Although this appears to be a royalty discount, it can be a means of inducing a raw materials purchase contract by initially setting a high royalty rate and then lowering it after the purchase contract is signed. Concerning the effect on producer surplus, the results show that an increase in franchise fees and royalties negatively affects the franchisee's operating profits but positively affects those of the franchisor's, leading to conflicts over the distribution of economic value added. Based on the findings here, we propose various policy recommendations, specifically reinforcing the contents in the Information Disclosure Document, further activating fixed-rate royalties, and strengthening the qualifications of franchisors when recruiting franchisees.

• 한국프랜차이즈경영연구
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• 제14권4호
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• pp.35-50
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• 2023

Purpose: This study aims to uncover the mechanism of how initial fees are determined in the restaurant franchise business. Since the initial fees can be considered as a price of utilizing business models and operational knowledge of a certain franchise brand, it is critical to understand the fee decision-making process based on the strategic pricing theories. Therefore, this study investigates the influence of operational value on the determination of initial franchise fees grounded on a value-based pricing strategy. The Operational value is specifically categorized into profitability, growth, and stability of the franchise system. Research design, data, and methodology: The data used were collected through franchise disclosure documents and brand equity index provided by Korea Management Association Consulting. Data from 44 franchise restaurants during 2018 to 2021 are included in the sample. The panel dataset was analyzed by using generalized least squares estimation with R-Studio. Results: Profitability and stability positively influence initial franchise fees. However, growth did not influence initial franchise fees. Conclusions: The results of the study demonstrate that the operational value plays a critical role in determining the franchise fees. Specifically, franchisees recognize how much revenue a franchise system generates for them (i.e., profitability) and how stable the entire system is for operating business (i.e., stability) when they make purchasing decisions for franchise. The findings extend the pricing literature by applying pricing theories in the franchise fee context. Also, the study contributes to franchising and restaurant management literature by providing knowledge of how franchise fees are determined.

• 한국IT서비스학회지
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• 제9권4호
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• pp.1-18
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• 2010

Plural governance system in which firms use vertical integration and market governance simultaneously are widely used across various marketing context. Typical examples of plural governance include franchise systems, in which firms own and operate some unit themselves while licensing the operation of some of their units to franchisees. Despite many scholars have attempted to explore the structure of plural governance over decades, there are few insights into its determinants. In this study, we examine the relationship between the proportion of outlets franchised and several franchisor's characteristics based on the perspectives of transaction cost analysis, resource scarcy theory and agency theory. Using franchisor data in Korean Franchise Disclosure Document over the 2006-2009 period, we test the effect of franchisor size, system growth rate, franchise fee, initial investment, and risk sharing on the proportion of outlets franchised. Except for the effect of system growth rate, the results of a series of multiple regression analysis supported the negative effects of franchisor size, franchise fee, initial investment and risk sharing on the proportion of outlets franchised.

• 한국중재학회지:중재연구
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• 제13권2호
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• pp.321-351
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• 2004

According to increase of Franchise Agreements, troubles related to those agreements and trading acts occur frequently. As Franchise system had come from Western countries, franchise agreement troubles tend to international disputes. In fact, those parties entered into a franchise agreement prefer arbitration to lawsuit as a dispute resolution system because arbitration is easy to risk-management for cost and time. The essential conditions for Franchise agreements are as follows ; for Franchise to grant Intellectual Properties to Franchisee, to give an impression of the same company between Franchise and Franchisee, to control and support Franchisee, for Franchisee to be an independent merchant, and to pay Franchiser license fee. Because Franchise Agreement is also based on liberty of contract, Franchise and Franchisee could enter into any kind of agreement. However, Franchiser can make an unfair agreement abusing a position of advantage. This paper check those unfair terms and conditions in Franchise agreement. Once they enter into an agreement, they should fulfil their contract. In case of trouble on performing the contract, both of them have to discuss to solve that trouble faithfully. But, they enter into either lawsuit or arbitration in accordance with agreement when they can't reach a decision in general. Specially, which is the most popular dispute resolution hands in case of Intellectual Property License agreement. General international Franchise Agreements have arbitration terms, but there is other case such as separate Arbitration Agreement if the want, which is separate from Franchise License agreement, so even though Franchise License agreement is invalidated, Arbitration agreement continues to exist, This paper reviews Franchise system and the terms of arbitration in Franchise agreement.

• 한국프랜차이즈경영연구
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• 제6권2호
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• pp.87-104
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• 2015

This study, based on theoretical and practical understanding of franchising, aims to conceptualize franchising in terms of marketing mix and proposes new paradigm of franchising. New schema of the franchise marketing mix involves both customer gap and franchisee gap by including customer and franchisee contacts and sets activities that include components of franchise system as the factor of marketing mix. So we could suggest the franchise marketing mix, '4F' by introducing conventional marketing mix concept into this assumption. The 4F schema consist of four sub-dimensions: 'Format', 'Fee & Royalty', 'Franchising Process', and 'Franchise Communication', which correspond to '4P'. In perspective of marketing mix, we could divide the franchise system into primary activity and support activity, then we also could categorize the fundamental activity into four-classification system, 4F schema. We expect that franchise marketing mix, 4F can be useful both theoretically and practically as it not only is not too different from the conventional marketing mix, but it also proposes franchise value chain by including unique characteristics and contents of the franchise system.

• 한국조리학회지
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• 제12권2호
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• pp.18-38
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• 2006

We studied franchisees’ answers to the questionnaires to know their selective motives and criteria, their types and the reliability of a franchisor in the food-service industry. Then we showed the basic data about the selective criteria of a sound franchisor. The result of this study was as follows. First, we need a specialist and a department to present a financially sound franchisor. Second, we must determine the criteria of franchise fee, royalty and the other items on payment for the franchisor. Third, the alternative plan to trust the franchisor was needed for a large-scale franchisee.

• 한국프랜차이즈경영연구
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• 제2권2호
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• pp.1-23
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• 2011

2002년 5월 공정거래위원회는 '가맹사업거래의 공정화에 관한 법률'을 제정하여 정보공개제도를 도입하였으나, 정보공개서의 신뢰성과 투명성을 담보하는데 한계가 드러나게 되어 2008년 2월부터 가맹본부로 하여금 가맹희망자나 가맹점사업자에게 제공할 정보공개서를 공정거래위원회에 등록하도록 하고, 등록된 정보공개서를 가맹희망자나 가맹점사업자에게 제공하도록 하는 정보공개등록 제도를 도입하였다. 이에 가맹본부는 새로이 도입된 정보공개서 등록제도에 대하여 귀찮고 규제일원적인 제도로 생각하고 있으나, 가맹사업이 급속도로 발전되고 있는 요즈음 가맹사업의 경쟁력을 강화하지 않으면 자칫 도태될 위험에 처해있는 현실에 비추어 볼 때, 역발상으로 오히려 가맹사업을 전개함에 있어 가맹본부가 잘 작성된 정보공개서를 홍보자료로 적극 활용하고 예비창업자들에 진실성이 담보된 정보를 제공하여 가맹본부의 신뢰성을 확보한다면, 가맹사업자와 더불어 가맹사업을 성공적으로 이끌 수 있는 토대를 마련하게 될 뿐 아니라 또한 가맹점사업자와의 사이에 발생되는 분쟁을 사전에 미리 차단하여 대리비용을 감소시켜나갈 수 있을 것이다. 이에 본 연구에서는 가맹본부의 입장에서 정보공개서를 잘 작성할 수 있는 방법 및 그 활용방안에 대하여 연구하였다.

• Asia Marketing Journal
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• 제14권3호
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• pp.185-197
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• 2012

Caffe Bene, one of the most notable coffeehouse chain brands in Republic of Korea, gives us some thought-provoking issues in terms of sustainable success. Despite harsh competition among various coffeehouse brands, Caffe Bene has been accomplished astonishing outcomes in domestic market and now ranked 2^nd place in sales among the global coffeehouse franchise in 2010 and 2011. These achievements were possible mainly because Caffe Bene adopted distinctive shop design, maintained aggressive marketing strategy, developed new menu, and combined the unique Korean culture with ordinary concept of café to make its place attractive. However, since Korean coffeehouse market is getting saturated and consumers are becoming savvy about coffee, Caffe Bene needs to find a new solution to overcome growth stagnation. Besides, many experts pointed out that irrational increase in the number of stores might hurt its business in the aspect of managing distribution channel and providing consistent services. Also, customers of Caffe Bene have shown that it has to complement its critical weaknesses: inferior coffee taste and relatively high price for a cup of coffee. Especially, some people view that the company is shifting its high rental fee, interior cost and PPL marketing cost to consumers by charging high price for coffee. To get over the problems, Caffe Bene is currently using C/S Consumer Management System though experts are questioning about the efficacy because of the conflict between purpose of the system and the headquarters' plan. Present CEO Kim also announced that the company will complete its logistics system in the latter half of 2012 to provide stores with more high quality coffee beans to improve taste of coffee. Thus, in this case, we describe how Caffe Bene succeeded in Korean market and enumerate its key success factors. Also, we specify the long-term goals of Caffe Bene and introduce the current policies and strategies to show how the company is working on to achieve its ultimate goal. By reading and analyzing this business case, students could get useful insights regarding franchise management and think about issues on competing in a saturated market. Also, it would be worthwhile to generate creative solutions for the problems that Caffe Bene is now facing to broaden the practical perspective.

• 한국산학기술학회논문지
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• 제22권3호
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• pp.688-696
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• 2021

본 연구는 피부미용 프랜차이즈 시스템의 개발을 위한 기초자료를 제공할 목적으로 한국과 미국의 피부미용 프랜차이즈 현황, 개설비용 및 서비스 내용을 조사하고 비교 분석하였다. 피부미용 프랜차이즈 현황 비교 분석 결과 한국과 미국 모두 주력 아이템은 페이셜 케어와 바디 케어이며 가맹점 수는 한국이 평균 54개로 미국의 평균 361개보다 적으나 이것은 프랜차이즈 시장 규모, 국토의 면적과 인구 등의 영향이 크다고 판단되었다. 개설 비용 비교 분석 결과 미국의 가맹비는 한국의 최대 가맹비보다 약1.5배 높으며 로열티는 한국이 20-60만원(월), 미국은 연간 매출액의 5-6%를 지급하며 Net Worth Requirement, Cash Requirement 등 개인 자산 확인을 필요로 하였다. 미국은 스파를 운영하는 업체가 많아 비용적인 부분에서 한국과 차이가 있었고, 교육 시스템에 대해 한국은 비용, 미국은 시간으로 정해져 있었다. 프랜차이즈에서 제공하는 서비스 내용 비교 결과 양국 모든 업체에서 페이셜 케어와 바디 케어를 중심으로 하고 있으며 한국은 대부분 브라이달 케어, 연구소를 운영하며 미국은 왁싱과 남성 관리, 핫 스톤, 스파 서비스를 추가로 운영하고 있었다. 양국 간의 기후나 인종 등의 차이와 함께 사회문화적인 분위기와 피부미용을 대하는 양국 간의 인식의 차이, 특히 개방도의 차이가 반영된 결과라고 판단된다. 향후 본 연구의 결과를 바탕으로 국내 피부미용 프랜차이즈 시스템을 발전적으로 보완한다면 해외 미용산업 프랜차이즈 시장에서 성장 가능할 것으로 전망된다.

• 마케팅과학연구
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• 제18권4호
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• pp.61-118
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• 2008

본 연구는 국내외 프랜차이즈의 해외진출에 대한 연구들을 바탕으로 국제프랜차이징연구의 전체적인 연구체계를 세워보고, 연구체계를 형성하고 있는 연구요인들을 확인하여 각 연구요소별로 이루어지는 연구주제와 내용을 살펴보고, 앞으로의 연구주제들을 제안하고자 한다. 주요한 연구요소들은 국제프랜차이징의 동기 및 환경 요소과 진출의사결정, 국제프랜차이징의 진입양식 및 발전전략, 국제프랜차이징의 운영전략 및 국제프랜차이징의 성과이다. 이외에도 국제프랜차이징 연구에 적용할 수 있는 대리인이론, 자원기반이론, 거래비용이론, 조직학습이론 및 해외진출이론들을 설명하였다. 또한 국제프랜차이징연구에서 보다 중점적으로 개발해야 할 질적, 양적 방법론을 소개하였으며, 마지막으로 국내연구의 동향을 정리하여 추후의 연구방향을 종합적으로 정리하였다.