• Journal of the Korea Society of Computer and Information
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• v.18 no.9
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• pp.165-175
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• 2013

Though the number of food franchises has been increased these days, there has not been less success for food franchise than failure. One of the several failures is the distrust between franchisor and franchisee factors because the franchisee thought its franchisor does not make its accounts and operations transparent. In order to resolve it, the large business food franchise has used the ERP system, however, small business franchise has run a very simple information system, which is linked to POS system and consists of simple functions to insert or inquire the result of data on sales and order etc to identify the status of both franchisor and franchisee because of financial difficulties and manpower shortage. Thus, small business franchise needs the cost management between them with low cost for efficient business administration. In this study, we suggest the data reference model (DRM) which covers the cost management system and is able to be linked to any POS system. The DRM is a framework whose primary purpose is to enable information linking and reuse across the any POS-based information systems via the classification, structure, model, exchange and management of data.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.11 no.5
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• pp.77-90
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• 2016

This study is to examine the importance of site selection and service quality in franchise business as food service franchise became one of the fastest-growing service industries today. The chief finding of this study is as follows: First, a survey in locational and service quality factors affecting food service franchise shows that responders are more concerned with hygiene and visibility of the store than proximity and transportation advantages which reflects low statistical significance, thus the distance did not seem to be a big problem for the responders in the context that they mostly visit nearby food franchise. Second, the examination of the influence by the service quality factors and customer satisfaction shows significant positive relation with customer response, speed and accuracy, and accuracy factors which reveals that the responders prefer prompt response and swift judgment toward the customer's needs and expectations, professional knowledge services to the credibility factors in which little correlation with the customer satisfaction were found. Third, the examination of the influence by the service quality factors, locational factors, and re-visit reveals that customer response and specialty showed statistically significant correlation with intention of WOM (Word of Mouth) and revisit, which suggests that swift judgment and response toward the customer's needs and expectations, professional knowledge services is of great importance to both customer satisfaction and revisit. The study on the aspects of locational and service quality factors affecting franchise industry's customer satisfaction was conducted as above, an investigation in both factors' influence on the customer satisfaction was made, and based on the results of the analysis, this research seeks an optimal operation strategy of a franchise business. Food service franchise are relatively very competent to business adminstration and reaction capability to consumption changes due to the already established market, and there are stores springing up everywhere inspired by the founders who are too confident of their success in the franchise business. However, it is necessary for the franchise beginners to figure out a zone oriented, regular customer oriented business strategy than just complying with the head office manual. Owing to an increasing trend of opening medium to large sized stores and investments in the wake of converting to multiple business type Korean food franchise, there is growing need to set up new concept of store development and operational management strategy in order to overcome the excessive competition and limited sales volume of the old-fashioned small sized, small capital franchise stores. Furthermore, as most business category of food service franchise serve very similar menus, from a product differentiation point of view, it is required to map out flexible sales concept including the adoption of competitive and low-price strategy. In conclusion, as is shown in the analytical research, the customers' optimal choice fluctuate over their preferences like customer convenience and circumstances rather than insisting on specific brand, thus it will be necessary for the franchise stores to draw up aggressive strategy and planning in running food service franchise to maximize their profits.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.6 no.1
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• pp.39-58
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• 2011

The Study on the Influence of Selection factors of Franchise System and Franchisee's Satisfaction in the Food Service Franchise Industry. Franchisors can use franchisee selection criteria as a key input control to enhance the outcomes of their future franchisees. A business technique based on long term contractual arrangements between two legally independent businesses and relying on certain inputs from both parties for success and survival has significant potential for conflict. Furthermore,with many independent small businesses falling to reach their full potential, it is important to evaluate franchising as an alternative system of business management and to identify the characteristics of franchisor and franchisees which contribute to the satisfactory operation of a franchised small business. Thus, the objective of this study was to investigate a possible relationship between franchisee satisfaction and certain characteristics of the franchisor and of the franchisees themselves. In accordance with results of a hypothesis verification, a Selection factors of Franchise affects positively a Franchisee's Business Satisfaction.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.5
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• pp.141-162
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• 2017

The International Monetary Fund (IMF) crisis introduced a system for easy layoffs. With recent economic downturn, employees have been asked to retire early and less new jobs have become available. More small businesses as a result have been started. The purpose of this research is to study weight and ranking on SWOT factors of korea food service franchise industry using the SWOT analysis. The Analytic Hierarchy Process (AHP) and Analytic Network Process (ANP) were used to analyze the SWOT found by the surveys. First, the SWOT analysis shows that the franchise owners and the expert group view the industry positively overall and there are more strengths, opportunities than weaknesses, threats. While there are negatives and threats to the industry overall, many people think that there are more opportunities and positive aspects. Second, the franchise owners rank proven business model and platform (S3) as the strongest strength of food service franchise businesses while the expert group ranks management supports (S2) from headquarters as the strongest strength. Third, the expert group and franchise owner group indicate that the weight on unfair franchise contracts with headquarters(W3) and high penalty from breaking a franchise agreement(W4) are 60% of weaknesses. Fourth, both the expert group and franchise owner group indicate that change in people's lifestyle, value system and consumption pattern(O3) as the most important opportunity. Fifth, both groups indicate that changes in consumption pattern(T1) due to ever changing food service industry as the biggest threat. It is ranked higher than the entry of korea food service franchises.

• 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.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.13 no.5
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• pp.87-102
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• 2018

The purpose of this study is to determine the impact of food service franchise's support system on franchisee's trust, financial performance and intention of multi-store operation. For this purpose, the results of the survey were collected for 111 small and mid-sized food service franchisees in Korea with less than 100 brand franchises, referring to article 9 of the act on Fair Trade. Structural equation model analysis was used for hypothesis testing. The results of the study are as follows; First, a support for store development, education, logistics, and supervisors among franchise's support system were found to have a significant impact on the franchisee's trust, but public relations support was not significantly affected. Second, a support for store development had significant influence on the financial performance, but the support for education, logistics, supervisors and public relations did not significantly affect the financial performance. Third, franchisee's trust has been shown to have a significant impact on financial performance and intention of multi-store operation. Fourth, financial performance was shown to have a significant impact on the intention of multi-store operation. Finally, confirming the mediated effects of financial performance on the effect of franchisee's trust and intention of multi-store operations also proved to have indirect effects. This study identified the impact relationship between the small and medium-sized food service franchise support system, franchisee's trust, financial performance and intention of multi-store operation. In particular, it is deemed meaningful that the performance of Korea's small and medium-sized food service franchises and the relationship of influence that can grow together through the qualitative growth of the franchise's system.

• 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.

• The Korean Journal of Franchise Management
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• v.10 no.3
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• pp.7-12
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• 2019

Purpose - This study examines the status of franchises and qualifications for franchising business, examines the franchising qualifications focusing on overseas cases, and suggests policy directions for strengthening the qualifications of franchising business. In order to achieve these purposes, the study reviewed the cases of USA, China, Australia, and United Kingdom franchising business law. Literature Review - According to the Fair Trade Commission, franchise is defined as a transactional relationship in which a franchiser provides certain support and education to franchisees in order to sell their goods and services more effectively. In addition, a franchise is a legally and financially independent business of franchisers and franchisees, and according to the concept of affiliates, it is necessary to define a franchise as a product and service marketing based on close and continuous collaboration. A franchiser can be defined as a company with the ability to develop a franchise system, create sustainable value based on it, and replicate "KNOW-HOW" to sellers. Case Study - This study examined the requirements for establishing a franchiser in the United States, China, Australia, and United Kingdom. In most countries, the requirements of franchisers must be operated for at least one year, which means that education, manual production, and continuity of stores should be checked. Suggestion - Based on Korea's population density and consumption sales index, we propose a screening system that registers through 2 + 1 systems, which require two stores to be operated for more than a year, by dividing Korea's commercial rights into two and a screening system instead of simple registration. In the case of a small franchisors, at least one franchsing retail store must be operated for at least one year, which should be applied to only one brand.

• Journal of the Korean Society of Safety
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• v.39 no.3
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• pp.36-49
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• 2024

Article 79 of the Occupational Safety and Health Act mandates franchise headquarters with over 200 franchises to implement industrial accident prevention measures. Notably, the franchise business information provision system designates restaurants and wholesale/retail as the primary categories for information disclosure, with convenience stores classified as secondary. This study aims to identify law-regulated franchise headquarters and franchises and analyze industrial accidents within these sectors. Furthermore, it seeks to investigate adverse risk factors for individual processes across major industries. Pertinent franchise headquarters and franchises were discerned using the Fair Trade Commission's business information system. Data regarding the status of industrial accidents, as published by the Ministry of Employment and Labor, was leveraged in the analysis of industrial accidents. Additionally, a survey was conducted to derive detrimental factors for each process in major industries. The inquiry revealed a total of 7 wholesale and retail franchise headquarters subject to the law, along with 126 within the restaurant industry. Overall, there were 50,488 franchises in the wholesale and retail sector, and 71,283 in the restaurant business. Risk factors and improvement measures for industrial processes were determined for five industries: convenience stores, Korean food restaurants, coffee places, pizza eateries, and chicken vendors. Locating the currently developed safety and health program establishment guide proves to be challenging. Moreover, utilizing it can be difficult due to the industry-specific content, further complicated by the prevalence of franchise stores featuring numerous small businesses. Therefore, this study highlights the imperative need to develop guidelines that incorporate preventive measures tailored to each industry.

• The Korean Journal of Franchise Management
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• v.3 no.1
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• pp.92-110
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• 2012

Due to the social problems including recent economic crisis and unemployment rate increase, the demand of business foundation market has been increased and, in the meantime, on the basis of the business foundation support policy of the government including youth foundation support policy and Small & Medium Business Administration foundation planning, business foundation market has been showing steady growth trend. With this enlargement of foundation market, as the accompanied increase of franchise market is expected, it is considered that the importance of more realistic and concrete research about franchise market be larger than before. This study considered brand image, main office support, foundation cost, information search activity as the advanced variable of effect on brand selection and established the cause of effect on brand selection by improving the existing advanced research, and its result is as follows. First, according to foundation business kind, age, sex, yes or no of marriage, there is some difference III the thought about brand image and foundation possibility. Second, Second, the most important factor of franchise contract intention is economical specificity. It is difficult to consider brand image, franchise support and information search activity as the property having a big effect on preliminary founder, and it was shown that the cost for franchise management(Consistency with initial foundation cost and self-capital, promotion cost, management fund, facility/equipment reinvestment, etc.) is an important property. Specially, it was shown that consistency with initial foundation cost and self-capital is the most important factor for preliminary founder.