• Title/Summary/Keyword: Franchise analysis

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A Study on the Franchise Business Environment and its Strategy in United Kingdom (영국 프랜차이즈 사업 환경과 진출 전략에 관한 연구)

  • Jang, Han-Byul;Lee, Sang-Youn
    • The Korean Journal of Franchise Management
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    • v.3 no.2
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    • pp.39-54
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    • 2012
  • Franchise system in Korea has been developed in different way compared with American way of franchising based on mutual contract and intellectual property context. Korean franchising is mostly based on product distribution franchise concept rather than business format franchise in which franchisor makes revenue sources from providing their products as much as possible thru group purchasing and logistics rather than receiving royalty. Many franchise enterprises from Korea drive to enter into global franchise market based on the successful performance of Korean way of franchising. Korean enterprises are required to prepare completely for research and survey regarding local culture, custom, way of life and legal matters etc. when entering into global franchise market to gain a substantial performance. CaffeBene recently entered into American franchise business with success, and many other Korean franchise enterprises have a deep interest in proceeding with global franchise business modeling CaffeBene case. There is no Korean franchise enterprise in United Kingdom in which service franchise area in particular with personal service is considered to become a promising and potential franchise business and many people show a great interest in Oriental foods and beverages with well-being trend. Korean franchise enterprises have now access to United Kingdom easier because IT industry including internet of the country have been developed by leaps and bounds since London Olympic in 2012. The purpose of this study is to suggest key success factors and basic strategy such as situation analysis, selecting business format, and marketing strategy for successful launching of franchise business in United Kingdom.

Social Big Data Analysis for Franchise Stores

  • Kim, Hyeon Gyu
    • Journal of the Korea Society of Computer and Information
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    • v.26 no.8
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    • pp.39-46
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    • 2021
  • When conducting social big data analysis for franchise stores, reviews of multiple branches of a franchise can be collected together, from which analysis results can be distorted significantly. To improve its accuracy, it should be possible to filter reviews of other branches properly which are not subject to the analysis. This paper presents a method for social big data analysis which reflects characteristics of franchise stores. The proposed method consists of search key configuration and review filtering. For the former, the open data provided by Small Business Promotion Agency is used to extract region names for collecting reviews more accurately. For the latter, open search APIs provided by Naver or Kakao are used to obtain franchise branch information for filtering reviews of other branches that are not subject to analysis. To verify performance of the proposed method, experiments were conducted based on real social reviews collected from online, where the results showed that the accuracy of the proposed review filtering was 93.6% on the average.

A Study on the Effects of Franchise's Factors and Performance : Analysis Disclosure Agreement (프랜차이즈 가맹본부의 특성과 가맹점 사업 성과간의 영향에 관한 연구 : 정보공개서를 중심으로)

  • Lee, Eun-Ji;Cho, Chul-Ho
    • The Korean Journal of Franchise Management
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    • v.3 no.2
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    • pp.20-38
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    • 2012
  • After being introduced into franchises industry, franchise has made a phenomenal growth in a short time and a substantial contribution to job creation and economic revitalization. Nevertheless, franchise business operators failed a business or low profit because of a lack of information and indiscriminate foundation. Therefore the first object of this study is characteristics of franchise's factors on disclosure agreement in franchise associate website. second is examinations about casual relationship between factor and franchise performance with using Excel and SPSS 18.0 versions. The findings of present study were as follows. First, franchises manage small business mostly(financial data, scale so on) and franchise's type focused the food service industry. Specially, a business district select unprotected contract. Second, in franchise's factors, we could find statistically significant effect on annual average sales and annual average net profit. However growth rate of franchise don't have statistically significant effect. Third, we could find statistically significant difference on analysis both franchises' factors and financial data. In conclusion, we must consider of franchise industry environment and success effect on performance in starting one's business. Furthermore franchises plan ways for their sustained growth and protection of rights and interests. Finally business operator draw up their information and upgrade continuously for franchises industry growth. Discussion and theoretical and managerial implications of the results were described along with future franchise research suggestions.

Effects of Foodservice Franchise's Brand Awareness and Service Quality on Cognitive Attitude, Affective Attitude, and Loyalty

  • KIM, Haeng Won;JEON, Yeong Mi
    • The Korean Journal of Franchise Management
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    • v.12 no.3
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    • pp.47-58
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    • 2021
  • Purpose: In general, franchise business models can generate higher returns and profits than non-franchise businesses. Therefore, it is necessary to study customer-based foodservice franchise brand awareness and service quality. The purpose of this study is to investigate the effect of service quality and brand awareness of foodservice franchises on attitudes divided into cognitive and affective attitudes and revisit intentions. Through this study, we intend to establish a structure that leads to service quality and brand awareness-cognitive attitude and affective attitude-loyalty. Research design, data, and methodology: In order to verify the hypothesis of this study, the survey was conducted among general consumers over the age of 20 who had visited a foodservice franchise within the last 3 months. Among the collected questionnaires, one insincere questionnaire was excluded, and 299 copies were used for analysis. The data collected to verify the hypothesis of this study were analyzed using SPSS 24.0 and AMOS 24.0. Result: First, it was found that the service quality of the foodservice franchise had a positive (+) effect on the cognitive attitude, and the service quality of the foodservice franchise had a statistically significant positive effect on the affective attitude. Second, the brand awareness of the foodservice franchise was found to have a statistically significant positive (+) effect on the cognitive attitude. and the brand awareness of the foodservice franchise had a statistically significant positive (+) effect on the affective attitude as well. Third, cognitive attitude was found to have a statistically significant positive (+) effect on loyalty, and affective attitude was also found to have a statistically significant positive (+) effect on loyalty. Conclusions: First, this study applied the S-O-R theory to the effect of service quality and brand recognition on cognitive attitude, affective attitude, and loyalty. Second, the structure leading to service quality and brand awareness-cognitive attitude and affective attitude-revisit intention was established. Third, attitudes in this study were divided into cognitive attitudes and affective attitudes. In general, attitude is studied as a single dimension as a cognitive attitude, but in this study, attitude was studied by dividing it into a cognitive dimension and an affective dimension

The Analysis of the Relationship between the Restaurant Franchisees' Understanding of the Fair Trade Practices Law for Franchise Business and the Related Factors (외식프랜차이지의 가맹사업거래의 공정화에 관한 법률 인식과 관련 변인과의 관계 분석)

  • Park, Jae-Ho;Cheon, Hee-Sook
    • Culinary science and hospitality research
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    • v.14 no.3
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    • pp.69-84
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    • 2008
  • The franchise business in Korea, having a relatively short history compared to those of the advanced countries, disclosed many problems between franchisors and franchisees due to a rapid growth in number for the short period of time. Having recognized these problems, the Korean government, responding to social demands, established "The Fair Trade Practices Law for Franchise Business" to restrict unfair trade practices and to develop a healthier franchise business practice in general. In this study, we closely examined how the franchisees' understanding of the related laws would influence the franchisees' countermoves and satisfaction and the franchisor's reactions from the franchisees' standpoints. In conclusion, the franchisees show higher satisfaction in heteronomous changes achieved by the mutual agreement with the franchisors rather than in autonomous changes achieved by their active pursuits, as seen from the interrelation of the franchisors' reactions and the appropriateness of franchise agreements.

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Effects of Franchise Restaurant Selection Attributes on Perceived Value, Customer Satisfaction and Loyalty (프랜차이즈 레스토랑의 선택속성이 지각된 가치와 고객만족 및 고객충성도에 미치는 영향)

  • Wang, Shuo;Lee, Yong-Ki;Kim, Sung-Hwan
    • The Korean Journal of Franchise Management
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    • v.9 no.4
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    • pp.7-19
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    • 2018
  • Purpose - Recently, global management in Korea franchise industry is becoming an important keyword. As an important branch market, Chinese market plays a major role not only by making experience of the competitiveness among global brands which offers a foothold to become a top global brand, but also by actualizing an economies of scale in production, sales, etc. Therefore, it is necessary to identify key successful factor influencing customer evaluation and responses of Korean franchise restaurant targeting Chinese consumers in China context. The purpose of this study is to examine the effects for Korean franchise restaurant selection attributes on perceived value, customer satisfaction and customer loyalty in Chinese context with SmartPLS 3 and Artifical Neural Network(ANN). Research design, data, and methodology - For these purposes, the authors developed several hypotheses. A questionnaire survey was conducted on the panel of online survey companies for Chinese consumers who have visited Korean franchise restaurants. A total of 404 data were analyzed using structural equation modeling(SEM) and artifical neural network(ANN) with SPSS 22.0 and SmartPLS 3.0. Result - The findings of this study are as follows: First, the alternative model findings show that facilities & atmosphere, employee service, and menu influenced on utilitarian value, customer satisfaction, and customer loyalty directly. Second, employee service influenced on customer satisfaction. Third, menu influenced on hedonic value. Fourth, brand reputation influenced on utilitarian value. Fifth, hedonic value increase customer satisfaction and customer loyalty. Sixth, hedonic value increase customer loyalty. Seventh, customer increase customer loyalty. And, the ANN analysis shows that utilitarian value is the first most important factor influencing customer satisfaction, followed by hedonic value, facilities & atmosphere, menu and employee service. However, the ANN analysis shows that customer satisfaction is the first most important factor influencing customer loyalty, followed by utilitarian value, hedonic value, brand reputation, menu, and employee service. Conclusions - This study provides practical implications for enhancing customer satisfaction and customer loyalty by applying the ANN technique that complements the limitations of the linear structural relationship analysis using the proposed model and the alternative model. In other words, the SEM-ANN model provides guidelines on how Korean franchise restaurants should formulate facilities & atmosphere, employee service, and menu mix strategies in China. In addition, ANN 's analysis shows that restaurant brand reputation plays a pivotal role in increasing customer loyalty. The fact suggests that Korean franchise companies should establish their domestic brand reputation prior to their entry into overseas markets such as China.

An Empirical Study on the Determinants of the Proportion of Franchised Outlet in Franchise Systems (프랜차이즈시스템에서 직영점대 가맹점 비율의 결정요인에 관한 연구)

  • Kim, Hyun-Soon;Park, Ju-Young;Lim, Young-Kyoon
    • Journal of Information Technology Services
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    • v.9 no.4
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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.

A Case Study of New Franchise Brand Launching Through Proactive Market Response: BEERBARKET'S Successful Story of INTO FRANCHISE SYSTEMS (선행적 대응을 통한 프랜차이즈 뉴비즈니스 런칭 사례 : (주)인토외식산업의 맥주바켓 성공사례)

  • Seo, Min-Gyo
    • The Korean Journal of Franchise Management
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    • v.3 no.1
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    • pp.111-129
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    • 2012
  • Domestic franchise industry is a promising business to more than 10% per year growth rate and emerging as core of retail. In addition, due to the socio-cultural phenomena, including the retirement of the baby-boom generation, the growth of the franchise industry for some time expected to continue. But Domestic franchise reveals that limits to ensure for new franchisees because that few industries are concentrated to advance for franchisor and franchisees. Franchisors that within the industry came to a saturated, are for the growth and expansion of business into new industries to deploy as second, third brand. But reality is that the more success rather than failure. Therefore, in this study is a new brand development approach and case study results it focus on the BEERBARKET's successful story of INTO FRANCHISE SYSTEMS, INC. Case analysis results of this study, are reveled that franchise headquarters derived through research methods and research information, environmental survey and analysis should be continuously and objectively. Thus, based on the derived contents, the new brand Biz-Model should be established for recognition from the industry and customers. Ability to respond sensitively to changes in the environment and business activities can be associated with linking franchise headquarters belonging to the saturated competitive environment more is needed. Through proactively respond Franchise New business launching instance that BEERBARKET's successful story of INTO FRANCHISE SYSTEMS, INC. suggests the need to study about how to respond to environmental changes.

Effects of Coffee Shop Choice Attributes and Type of Coffee Shop on Customer Satisfaction : Using Fuzzy Set Qualitative Comparative Analysis(fsQCA) (커피전문점 선택 속성과 점포유형의 결합 관계가 만족도에 미치는 영향 : 퍼지셋 질적비교분석(fsQCA)을 중심으로)

  • Han, Young-Wi;Lee, Yong-Ki;Ahn, Sung-Man
    • The Korean Journal of Franchise Management
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    • v.8 no.1
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    • pp.31-41
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    • 2017
  • Purpose - As the domestic coffee market is rapidly growing and competition is intensifying, coffee shops need to establish a marketing strategy that grasps the needs and desires of consumers in order to secure a competitive advantage in terms of survival. From this point of view, this study suggests what choice attributes consumers consider when visiting coffee shops, and analyzes the effect of customer choice attributes on franchise and private coffee shops using fsQCA. Research design, data, and methodology - In the present study, we tried to understand the effect of the combination of choice attribute on satisfaction by the type of coffee shop based on the complex system theory, while studying the existing coffee shop choice attribute focuses on the causal relationship. FsQCA is a complementary analytical method between quantitative and qualitative research, and is a method for effectively analyzing the complex combination of causal variables. Result - The results of the study are as follows. First, cleanliness was found to be the most important factor in determining coffee quality, which is the most important factor affecting customer satisfaction. Second, customers who prefer franchise coffee shops seem to be most concerned about atmosphere, menu, cleanliness and price. On the other hand, customers who prefer private coffee shops consider image the most important. Conclusions - The implications of this study are as follows. Overall, coffee shops should manage cleanliness basically regardless of the type of store, but they should manage the choice attributes differently depending on the type of coffee shop. Franchise coffee shops will be able to increase the level of store satisfaction by systematically managing the store atmosphere, menu, cleanliness, and price according to the manual using the advantages of the franchise system. On the other hand, unlike the franchise coffee shops, private coffee shops can operate autonomous stores, so customers can use various marketing mixes to enhance their store image.

Effects of Foodservice Franchise's Advertising Model Characteristics on Model Satisfaction, Brand Image, and Purchase Intention (외식 프랜차이즈의 광고 모델 특성이 모델 만족도, 브랜드 이미지 그리고 구매 의도에 미치는 영향)

  • SONG, Hae-Sun;KO, Ki-Hyun
    • The Korean Journal of Franchise Management
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    • v.12 no.4
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    • pp.25-40
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    • 2021
  • Purpose: Marketing communication with customers is essential for companies to survive and grow in a fiercely competitive environment. Advertising is one of the most readily accepted marketing communications by consumers. Unlike a company that owns a distribution network, advertising is vital for a franchise. In general, many advertising models select celebrities. Celebrities are more likely to attract audience attention and influence consumers' purchase intentions. Customers satisfied with advertising are more likely to stay loyal and buy again when the company launches a new product. In addition, customers form a brand image through advertisements. Therefore, in this study, the effect of the characteristics of the foodservice franchise advertising model characteristics on model satisfaction, brand image, and purchase intention. Research design, data, and methodology: The survey of this study was conducted among consumers over the age of 20 who had seen a restaurant franchise advertisement and visited a store within the last 2 months. 305 copies were collected for 7 days during the survey period, from October 21 to October 27, 2021. Among the collected questionnaires, 12 insincere questionnaires were excluded, and 293 were used for analysis. SPSS 25.0 and Smart PLS 3.0 were used as data collected to test the hypothesis. Result: As a result of the study, among the advertising model characteristics of a foodservice franchise, reliability, attractiveness, expertise, and closeness all had a significant positive (+) effect on model satisfaction. In addition, reliability and closeness were found to have a significantly positive (+) effect on brand satisfaction, but attractive and expertise did not significantly affect brand image. Finally, model satisfaction was found to have a significant positive (+) effect on brand image and purchase intention. Brand image also appeared to have a significant positive effect on purchase intention. Conclusions: Research Results First, this study verified the effect of a restaurant franchise advertising model using celebrities by using the characteristics of the advertising model. Second, this study developed a conceptual structure for model characteristics - model satisfaction - brand image - purchase intention. Third, the restaurant franchise marketer needs to select a model in consideration of the privacy of the advertising model. Fourth, consumers tend to equate advertising models with advertising