• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.7 no.2
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• pp.177-187
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• 2012

Franchising has long been an effective form of distribution that is used primarily by manufacturers whose product lines are especially suited exclusive or highly selective distribution. By IFA(International Franchise Association), franchising is defined as a continuing relationship in which the franchisor provides a licensed privilege to do business, plus assistance in organizing, training, merchandising, and management in return for a consideration from the franchisee. Thus franchising is a method for the owner(franchisor) of product, service, or method to obtain retail or wholesale distribution through licensed, affiliated dealers(franchisees). With rapid increase of franchising industry globally, franchising industry is very rapidly increasing especially in the sector of outdoor restaurant industry in Korea. But there are many problems to be settled for promoting this industry. For example, the industry is too much lean outdoor restaurant industry. With franchisors' short history and lack of management capacity, shortage of distribution infrastructure, smaller size of franchising system, and low trust between franchisor and franchisee, and so on, the industry has many barriers to overcome for promoting it. Here we are suggesting that taxation benefaction, monetary support for the starting franchisee, establishment of fair trade principle, promoting information system and professional human resource should be needed.