• Title/Summary/Keyword: Franchises

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The Effect of Franchise Entrepreneurial Passion on Corporate Trust, Identification, and Loyalty (프랜차이즈 기업가 열정이 기업신뢰, 일체감, 그리고 충성도에 미치는 영향)

  • Park, Heung-Jin;Han, Sang-Ho;Kim, Eun-Jung
    • The Korean Journal of Franchise Management
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    • v.8 no.3
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    • pp.17-27
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    • 2017
  • Purpose - In align with the increasing competition in both online and offline franchise markets caused by the increasing impact of social networking service, entrepreneurial passion(EP) of the franchise owners has crucial impact on the stakeholders. This study proposed the customer among stakeholders has the critical influence firm's success and examined the structural relationship between entrepreneurial passion(EP) and trust, identification, and loyalty from the customer's perspective. Research design, data, and methodology - This study examines the structural relationship between entrepreneurial passion(EP), trust, identification, and loyalty from the customer's perspective. More specifically, the EP were measured using three sub-dimensions such as EP-inventing(Perceived passion for inventing), EP-founding(Perceived passion for foundting), and EP-developing(Perceived passion for developing). In order to verify the research purposes, research model and hypotheses were developed. All constructs were measured with multiple items developed and tested in the previous studies. Each item was measured on a 7 point Likert-scale anchored by '1 = strongly disagree, 7 = strongly agree'. The data were collected from 449 franchise consumers through online survey and were analyzed using SPSS 21.0 and Smart PLS 3.0. statistical program. Result - The results of this study are as follows. First, EP-inventing and EP-developing have significant impacts on corporate trust. Second, EP-founding does not have significant impact on corporate trust. Third, EP-inventing and EP-founding have significant impacts on consumer identification. Fourth, EP-developing does not have impact on identification directly, but does indirectly through corporate trust as a mediator. Fifth, corporate trust and identification have significant impacts on loyalty. Conclusions - This indicates that the foodservice franchise CEOs should continuously develop new menus and service to fulfill customer needs. EP-inventing of the food franchise CEOs may enhance customer trust for higher quality of product or service, and EP-developing can also be a driving force for customer trust as it embeds belief in customers that the franchise is sustainably developing. Also, food franchise CEOs should first clarify the support process for the existing brands before developing new ones. Customers tend to lead the trend by using brands that satisfy new trends in the foodservice franchise market, and it could have identification with the trend-setting franchise. Customers do not accept if a company is different from their personal image or norms. So the franchise CEOs must create identification with customers by building corporate trust. Corporate trust influences consumer behavior and emotion, thus the franchises need to secure trust by improving product or service continuously.

The Effects of Non Verbal Communication of Restaurant Employees on Customer Emotion, Customer Satisfaction, Customer Trust, and Revisit Intention (외식업 직원의 비언어적 커뮤니케이션이 고객감정, 고객만족, 고객신뢰 그리고 재방문의도에 미치는 영향)

  • Kim, Bo-Yeong;Jun, Jae-Hyeon;Han, Sang-Ho
    • The Korean Journal of Franchise Management
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    • v.9 no.3
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    • pp.45-55
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    • 2018
  • Purpose - Non-verbal Communication with customers in restaurant business can play an important role because it affects customer behavior and attitudes as a means to develop and maintain long-term relationships with customers. The purpose of this study is to analyze the effect of non-verbal communication with customers and the effect of the influence on customer satisfaction, trust, and revisit intention. Research design, data, methodology - In order to verify the research models and hypotheses of this study, questions were prepared for each variable and data were collected through questionnaires. The questionnaire survey was conducted from March 27, 2018 to April 17, 2018, for those who agreed with the citizens of the Jeju area who visited the restaurant recently. 50 out of 100 were conducted by internet survey and 50 were surveyed. Thus, a total of 100 responses were used using structural equation modeling with Smartpls 3.0. Results - The results of the study are as follows. First, non-verbal communication has a significant impact on customer emotion. Second customer emotion have a significant impact on customer trust and satisfaction. Third, Customer satisfaction had positive a significant effect on revisit intention. Fourth, Customer trust had positive a significant effect on revisit intention. Conclusions - The implications of this study are following as: The food service company should continuously provide non-verbal communication training to employees so that they can respond to customers with the right attitude and bright smile. In particular, in the case of restaurant franchises, customer response manuals should be created and distributed to the franchisees, and a regular training program for the franchisees should be implemented to provide the same service to the customer. Second, CEOs should have to worry about what kind of experience he or she has left since leaving the store. It is also necessary to constantly look at what customers experience in their stores or in their brands, and what emotions they form through their experiences. Third, the more satisfied or trusted customers are formed through the service of the employee, the more loyal the restaurant business will be, and the more likely it is to make continuous revisit and positive word-of-mouth activities..

The Case Study of Successful Strategies for Launching New Brands in Franchise Companies through Core Competence and Paradigm Shift : Based on Cases of'Gamarogangjung'of Masedarin Inc. (프랜차이즈 기업의 핵심역량과 발상의 전환을 통한 신규브랜드 성공전략 사례연구 - (주)마세다린의 가마로 강정 사례를 중심으로 -)

  • Seo, Min-Gyo;Cheong, Tae-Hwan
    • The Korean Journal of Franchise Management
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    • v.3 no.2
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    • pp.55-78
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    • 2012
  • The purpose of this study is to devise successful strategies for launching of new brands in franchise companies based on cases of 'Gamarogangjung' of Masedarin Inc. The results of case analysis shaw following successful strategies. First, Masedarin Inc. has used its core competence; Masedarin Inc., which managed chicken franchises for many years, launched the new brand, 'Gamarogangjung' based on its differentiated technologies and infrastructure. Second, the brand, 'Gamarogangjung' has used market oriented strategy actively; the brand has reflected customers' needs to its adminstration immediately by understanding and sharing of customers' needs at the corporate level. Third, Masedarin Inc. has differentiated a business model from other companies; by using 'take out' purchasing system instead of 'delivery to doors' or 'purchasing by visiting', the company has saved huge management cost. Fourth, Masedarin Inc. developed a new kind of business which is differentiated from existing chicken franchise brands or take-out restaurants. Fifth, Masedarin Inc. has appealed its sincerity to franchisees; its business information session, which explains about the business openly without exaggeration, has drawn a high rate of franchise agreement. Sixth, Masedarin Inc. changed its way of thinking about conditions of a location for member stores. The company has selected 'A' level locations for their member stores which enables 'quick sales at small profits' while other take-out stores are usually located at 'B' level location. Lastly, Masedarin Inc. has given thorough instructions to the staff of member stores. And immediately after opening of the stores, franchisees were able to operate the stores comfortably because the company educated the staff repeatedly over a long period to make them master skills before the opening of the store.

Influence of Sociocultural Services on Brand Image and Loyalty of Cafe (카페의 브랜드 이미지와 충성도에 대한 사회문화성서비스 영향)

  • Kim, Yeon Jong;Seol, Byung Moon;Mun, Hee Jung
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.12 no.5
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    • pp.163-175
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    • 2017
  • The purpose of this study is to find out how to improve the brand image and loyalty of cafe by recognizing that social culture of middle school cafe, which is an important service quality in cafe establishment, emerges as a main characteristic of new coffee business. First, reliability, confidentness, professionalism, accessibility, and socio - culturality of the service quality of coffee specialty shops improve brand image. Confidence and professionalism play an important role in enhancing brand loyalty, and brand image has a significant effect on brand loyalty. Respectively, Among the service quality, social culture has a strong influence on brand image but it is not a direct influence on brand loyalty. Second, in the relationship between brand loyalty of coffee service quality, brand image shows full mediation effect on reliability, partial mediation effect on confidence, professionalism, accessibility, socialcultural property, and mediation effect on response and empathy. Third, as a result of analyzing the moderating effects of coffee shop types on the relationship between service quality and brand image of coffee specialty shops, reliability, confidentiality, and accessibility are positive factors in the nationwide franchise. On the other hand, in the private $caf{\acute{e}}$, professionalism and socio-culturality are the main factors for improving the brand image. In the case of the local franchise, similar to the franchise in the country, the improvement of service quality for responsiveness and professionalism is a positive factor Respectively. As a result, nationwide franchise $caf{\acute{e}}s$ have priority in enhancing brand image and brand loyalty through accessibility and assurance of service quality. On the other hand, in case of local franchise $caf{\acute{e}}$, it can be seen that the service quality is enhanced and the brand image and brand loyalty can be further improved through service professionalism and accessibility. On the other hand, regional cafes are more important than national franchises or local franchise cafes, and a strategy to enhance customer loyalty is needed through service strategies emphasizing socio - cultural aspects.

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A Study on the Effects of the Characteristics of Franchise Business Members on Affiliate Outcomes (업종별 프랜차이즈 선택결정요인이 가맹점 성과의 만족도와 성공·실패에 미치는 영향연구)

  • Jang, Jae-Nam;Kang, Chang-Dong;Ahn, Sung-Sik
    • 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.

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A Study on the Effects of Brand Individuality of Specialty Coffee Shops on Brand Loyalty (커피 전문점의 브랜드 개성이 브랜드 충성도에 미치는 영향에 관한 연구)

  • Kim, Joon-Seok;Choi, Sung-Hwan
    • Culinary science and hospitality research
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    • v.17 no.1
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    • pp.124-141
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    • 2011
  • The domestic food culture in Korea has gone through great changes, among which dining out is considered most prominent. These changes are caused by a number of factors: development of several related industries, increase in dining out chances, diversification of consumer needs, change in consumption awareness and quality, increase in disposable income, women's advance into the society, etc. Under these circumstances, the fast food industry has been experiencing slow growth, whereas family restaurants and take out coffee franchises are consistently increasing the number of restaurants and shops as a part of aggressive management to increase sales. This study aims, first, to examine the effects of consumer's brand individuality and satisfaction on brand trust, brand emotion, brand identification, and brand loyalty of specialty coffee shops. Subsequently, this study observes how consumer's brand individuality and satisfaction affect the formation of brand trust, brand emotion, brand identification, and brand loyalty in accordance with preferred type of specialty coffee shops, frequency of experience, and life style in order to establish relevant strategies. The results of this study are as follows. First, brand individuality had a positive effect on customer satisfaction. Second, customer satisfaction had a positive effect on brand trust. Third, customer satisfaction had a positive effect on brand loyalty. Fourth, customer satisfaction had a positive effect on brand emotion. Fifth, brand trust had a positive effect on brand loyalty. Sixth, brand emotion had a positive effect on brand loyalty. These results have the following implications. First, the dimensions of brand individuality are presented as a means to form brand loyalty, thereby demonstrating the significance of the effect. Accordingly, developing a proper brand individuality in forming brand loyalty is imperative. Second, consumers using specialty coffee shops had the greatest effect on the relation between dimensions of brand individuality and customer satisfaction in this study, while the interrelation between customer satisfaction and brand loyalty was not concretely supported in the preceding studies.

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Knowledge Management Strategy of a Franchise Business : The Case of a Paris Baguette Bakery (프랜차이즈 기업의 지식경영 전략 : 파리바게뜨 사례를 중심으로)

  • Cho, Joon-Sang;Kim, Bo-Yong
    • Journal of Distribution Science
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    • v.10 no.6
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    • pp.39-53
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    • 2012
  • It is widely known that knowledge management plays a facilitating role that contributes to upgrading organizational performance. Knowledge management systems (KMS), especially, support the knowledge management process including the sharing, creating, and using of knowledge within a company, and maximize the value of knowledge resources within an organization. Despite this widely held belief, there are few studies that describe how companies actually develop, share, and practice their knowledge. Companies in the domestic small franchise sector, which are in the early stages in terms of knowledge management, need to improve their KMS to manage their franchisees effectively. From this perspective, this study uses a qualitative approach to explore the actual process of knowledge management implementation. This article presents a case study of PB (Paris Baguette) company, which is the first to build a KMS in the franchise industry. The study was able to confirm the following facts through the analysis of target companies. First, the chief executive's support is a critical success factor and this support can increase the participation of organization members. Second, it is important to build a process and culture that actively creates and leverages information in knowledge management activities. The organizational learning culture should be one where the creation, learning, and sharing of new knowledge is developed continuously. Third, a horizontal network organization is needed in order to make relationships within the organization more close-knit. Fourth, in order to connect the diverse processes such as knowledge acquisition, storage, and utilization of knowledge management activities, information technology (IT) capabilities are essential. Indeed, IT can be a powerful tool for improving the quality of work and maximizing the spread and use of knowledge. However, during the construction of an intranet based KMS, research is required to ensure that the most efficient system is implemented. Finally, proper evaluation and compensation are important success factors. In order to develop knowledge workers, an appropriate program of promotion and compensation should be established. Also, building members' confidence in the benefits of knowledge management should be an ongoing activity. The company developed its original KMS to achieve a flexible and proactive organization, and a new KMS to improve organizational and personal capabilities. The PB case shows that there are differences between participants perceptions and actual performance in managing knowledge; that knowledge management is not a matter of formality but a paradigm that assures the sharing of knowledge; and that IT boosts communication skills, thus creating a mutual relationship to enhance the flow of knowledge and information between people. Knowledge management for building organizational capabilities can be successful when considering its focus and ways to increase its acceptance. This study suggests guidelines for major factors that corporate executives of domestic franchises should consider to improve knowledge management and the higher operating activities that can be used.

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Case Analysis and Prospect of K-POP Performance Art's Overseas Entry by Joint Venture (K-POP 공연 예술의 합작 투자에 의한 해외 진출 사례 분석 및 전망)

  • Ko, Kyu-Dae
    • Journal of Korea Entertainment Industry Association
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    • v.14 no.3
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    • pp.191-200
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    • 2020
  • Companies are seeking to maximize profits through exports and imports in the ultra-fast, ultra-high-speed modern society. It is only possible to sustain its survival if it targets the global market, not based on any specific region. The K-POP group is also targeting overseas markets in a manner similar to the various global strategies used when companies make inroads into foreign markets, including exports, contracts and direct investment. The K-POP group is engaged in various forms of activities, ranging from simple forms of performance (export) that are visited and staged by an invitation from a certain foreign country to series performances (license) by an invitation from a local promoter and tour performances using its capabilities. The K-POP group is seeking to go beyond the art of single-stage performances and make a systematic plan and make inroads into foreign countries in the form of direct investment suitable for each foreign country. The K-POP group made inroads into overseas markets in the form of simple performances from the late 1990s to 2005, when 'Korean Wave' was first introduced. Group H.O.T., etc. are typical examples. Since then, it has sought to enter overseas markets in the form of franchises by accepting overseas members by 2018, starting with Super Junior in 2005. Since then, the K-POP group in the form of joint investment attempted as group IZ*ONE in 2018 appeared, and a voice story came out in September 2018 when South Korea's JYP Entertainment and Tencent of China joined forces. Unlike K-POP Group, which has entered foreign markets with a global strategy based on the existing export method (H.O.T.), 'Boystory' is a representative group that is made with joint investment, which is a direct investment method. In February 2020, RBW released 'D1Verse,' a five-member group selected by Vietnam's reality show, as a joint investment-type group. This shows the possibility that domestic and foreign companies will release a group in the form of joint investment in order to pursue both globalization and localization.

Extreme Job, How Will We Survive Since "Candlelight Protest"? -A Revival of Comic Mode and a Comedy Film in the Age of Self-Management (<극한직업>, '촛불혁명' 이후 어떻게 버티며 살아남을 것인가? -코믹 모드의 부활과 자기경영 시대의 코미디영화)

  • Chung, Young-Kwon
    • Journal of Popular Narrative
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    • v.26 no.3
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    • pp.221-254
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    • 2020
  • This paper finds a solution in the social context which cannot be explained thoroughly by well-timed release date, revival of comedy films, and the attraction of Lee Byeong-heon's comedy etc. while it throws question of how the film, Extreme Job captivated 16 million audience. The incredible hits of Extreme Job cannot be explained by analyzing the text alone. After this essay investigates a function and a role of comedy as a public sphere, it examines people's desires and wishes in the comedy and other genres since 2008 when the conservative government has seized power. Since 2008 a series of dark tone's action thriller, social problem film, and disaster film have emerged, these genres showed absence of public security, crisis of democracy and criticism against rulling class. On the other hand, hit comedy films have showed escapism such as weepie, nostalgia, and fantasy at the same time, generally. Although Veteran (2015) is not full-blown comedy, after this film's big success, "comic mode" has gradually revived. A light tone's films which are truer to genre rules has started representing the wishes of people toward social reforms and changes. Meanwhile, "Candlelight Protest" served as a momentum to recover the democracy which has been in crisis, but it could not lead changes in economic and daily lives. Exreme Job can be read as a question how we will survive since "Candlight Protest." The lives of detectives as self-employed workers who has taken over a fried chicken restaurant for going undercover are appearances of ordinary persons who must survive in the edless conpetition. Furthermore, this film shows a dream of a "great success myth" which becomes well-known as a famous restaurant and a self-management such as brand-naming and an exapansion of franchise business. We can read ganster's chicken franchises as a huge distribution industry which disturbs market system by delivering drugs secretly. While applauses that we give to the police having identities of self-employed workers which sweeps the ganster are giving support to oridinary neighborhood like us, they are also wishes of people who long for the restoration of publicness of police in the market which is becoming increasingly privatized today. A significance of this essay is to examine Extreme Job in terms of the geography of film genres and the revival of comic mode sicne 2008 at the macro level, and is to read the film in the perspective of the problems of economic and daily lives which has been still unsolved since "Candlelight Protest" at the micro level.

Study on the effect of small and medium-sized businesses being selected as suitable business types, on the franchise industry (중소기업적합업종선정이 프랜차이즈산업에 미치는 영향에 관한 연구)

  • Kang, Chang-Dong;Shin, Geon-Chel;Jang, Jae Nam
    • 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.

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