• Title, Summary, Keyword: Franchisee

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The Effect of Franchisor's On-going Support Services on Franchisee's Relationship Quality and Business Performance in the Foodservice Industry (외식 프랜차이즈 가맹본부의 사후 지원서비스가 가맹점의 관계품질과 경영성과에 미치는 영향)

  • Lee, Jae-Han;Lee, Yong-Ki;Han, Kyu-Chul
    • Journal of Distribution Research
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    • v.15 no.3
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    • pp.1-34
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    • 2010
  • Introduction The purpose of this research is to develop overall model which involves the effect of ongoing support services by franchisor on franchisee's relationship quality(trust, satisfaction, and commitment) and business performance(financial and non-financial performance), and to investigate the relationships among trust, satisfaction, commitment, financial and non-financial performance. This study also suggests franchise business or franchise system should be based on long-term orientation between franchisor and franchisee rather than short-term orientation, or transactional relationship, and proposes the most effective way of providing on-going support services by franchisor with franchisee thru symbiotic relationship among franchisor and franchisee Research Model and Hypothesis The research model as Figure 1 shows the variables on-going support services which affect the relationship quality between franchisor and franchisee such as trust, satisfaction, and commitment, and also analyze the effects of relationship quality on business performance including financial and non-financial performance We established 12 hypotheses to test as follows; Relationship between on-going support services and trust H1: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's trust. Relationship between on-going support services and satisfaction H2: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's satisfaction. Relationship between on-going support services and commitment H3: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's commitment. Relationship among relationship quality: trust, satisfaction, and commitment H4: Franchisee's trust has positive effect on franchisee's satisfaction. H5: Franchisee's trust has positive effect on franchisee's commitment. H6: Franchisee's satisfaction has positive effect on franchisee's commitment. Relationship between relationship quality and business performance H7: Franchisee's trust has positive effect on franchisee's financial performance. H8: Franchisee's trust has positive effect on franchisee's non-financial performance. H9: Franchisee's satisfaction has positive effect on franchisee's financial performance. H10: Franchisee's satisfaction has positive effect on franchisee's non-financial performance. H11: Franchisee's commitment has positive effect on franchisee's financial performance. H12: Franchisee's commitment has positive effect on franchisee's non-financial performance. Method The on-going support services were defined as an organized system of continuous supporting services by franchisor for the purpose of satisfying the expectation of franchisee based on long-term orientation and classified into six constructs such as product category & price, logistics service, promotion, providing information & problem solving capability, supervisor's support, and education & training support. The six constructs were measured agreement using a 7-point Likert-type scale (1 = strongly disagree to 7 = strongly agree)as follows. The product category & price was measured by four items: menu variety, price of food material provided by franchisor, and support for developing new menu. The logistics service was measured by six items: distribution system of franchisor, return policy for provided food materials, timeliness, inventory control level of franchisor, accuracy of order, and flexibility of emergency order. The promotion was measured by five items: differentiated promotion activities, brand image of franchisor, promotion effect such as customer increase, long-term plan of promotion, and micro-marketing concept in promotion. The providing information & problem solving capability was measured by information providing of new products, information of competitors, information of cost reduction, and efforts for solving problems in franchisee's operations. The supervisor's support was measured by supervisor operations, frequency of visiting franchisee, support by data analysis, processing the suggestions by franchisee, diagnosis and solutions for the franchisee's operations, and support for increasing sales in franchisee. Finally, the of education & training support was measured by recipe training by specialist, service training for store people, systemized training program, and tax & human resources support services. Analysis and results The data were analyzed using Amos. Figure 2 and Table 1 present the result of the structural equation model. Implications The results of this research are as follows: Firstly, the factors of product category, information providing and problem solving capacity influence only franchisee's satisfaction and commitment. Secondly, logistic services and supervising factors influence only trust and satisfaction. Thirdly, continuing education and training factors influence only franchisee's trust and commitment. Fourthly, sales promotion factor influences all the relationship quality representing trust, satisfaction, and commitment. Fifthly, regarding relationship among relationship quality, trust positively influences satisfaction, however, does not directly influence commitment, but satisfaction positively affects commitment. Therefore, satisfaction plays a mediating role between trust and commitment. Sixthly, trust positively influence only financial performance, and satisfaction and commitment influence positively both financial and non-financial performance.

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A Study on the Effect of Core Competence of Supervisor on the Business Performance of Franchisees and Franchisor

  • Song, Ji-Hyun;Jo, Gye-Beom
    • Journal of the Korea Society of Computer and Information
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    • v.23 no.10
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    • pp.189-201
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    • 2018
  • This study analyzed the effect of core competence of supervisor on the satisfaction, loyalty, business performance of franchisees and business performance of franchisor. And the purpose of this study is to solve the most problematic issues in franchise business such as poor sales of franchisee, inadequate measures for activating sluggish stores, closing rate increase of franchisee, dispute between a franchisee and franchisor. The results of this study will be used as data for the success of Franchisor's business operation and for the change and development of the franchise industry. In this study, 168 CEOs and employees in the franchise industry were surveyed. Through previous research and expert interviews, we designed the core competency factors of franchise supervisors into seven areas: check, consulting, coordination, promotion, counseling, communication, and control. In order to verify the hypothesis of the research, the relationship between variables was verified by simple regression analysis and multiple regression analysis. Key result of the study are as follows. First, the core competency of the supervisor has a positive relationship with the franchisee's satisfaction. Second, the core competence of the supervisor has a positive relationship with the franchisee's loyalty. Third, franchisee's satisfaction has a positive effect on loyalty. Fourth, franchisee's satisfaction positively affects the business performance of franchisee and franchisor. Fifth, franchisee's loyalty positively affects the business performance of franchisee and franchisor.

The Decision Factor of Franchisee Performance in Esthetic Store (피부관리 가맹점의 성과결정요인에 관한 연구)

  • Park, Yeung-kurn;Kim, Pan-jun;Lee, Bong-choon
    • The Journal of Distribution Science
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    • v.4 no.1
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    • pp.141-160
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    • 2006
  • The esthetic center skips over the dimension of simply theoretical knowledge by the specialization, segmentation, and gentrification and the importance of the technical education which introduced into the spot experienceis raising its head. And the esthetic center's importance which copes with the environment changing actively is being cognized. The franchisee system of esthetic shows that while the domestic market is opened, the appearance of foreign famous brand-centered is increasing rapidly. According to this kind of trend, every kind of mediums will not stop the classified ad of franchisee and it will be recognized as the promising sector. Especially, the situation of franchisee is that franchisors and franchisees in the limited relationship and just plan the growth, so the success possibly can be very high. The diffusion of franchisee system and the study about the franchisee are developed on the diverse view points. But still now, the study is just formed from the enterprise's success and the franchisors view point, the study about the franchisees dimension is very small. But it is also very important to exam the decision factors of franchisees success because the franchisors result of franchisee system will come out with franchisee performance totally. In this paper, it will actually proof if the decisive factors that exert influence on the franchisee performance in the franchisee dimension, exert influence on the franchisee performance in substance; and exam what kind of relationship the franchisee performance have with the franchisors and recontract intention. According to this, we can draw out the rest decision factors of improving the franchisee performance, and also show the strategic implication of franchisee efficient marketing.

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A Study on the satisfaction of the Franchisee in Franchise industry (외식 프랜차이즈산업의 가맹점 만족도에 관한 연구)

  • 김형준
    • Culinary science and hospitality research
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    • v.6 no.2
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    • pp.315-330
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    • 2000
  • The development of foodservice franchise is inevitable in the developmental process of domestic foodservice industry and it has been led by some big enterprises and foreign brands, but foodservice franchise of a new and differential form will be rapidly developed. The success of franchise can be resulted under the recognition that franchiser and franchise are in the common fate as the partner. Franchisee must make its best efforts to enhance the unity and value of brand jointly with franchiser. Therefore. franchisee has to make efforts to maintain the quality of commodity and service, not to damage the value of title and follow the guidance and effort of franchiser it chose. Franchiser must have the recognition that the success of franchisee is the key of that of franchiser and give franchisee a reliability in order that it follows the order of franchiser. It must have the consciousness that it can achieve the success through the increase of sales by franchisee and support franchisee with trust not to have the easygoing way of thinking to derive its income of commission from increasing the number of franchisees.

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The Effects of TSI(Transaction Specific Investment) on Dependence, Trust, Commitment and Re-Contract Intention

  • Yang, Jeong-Seok;Lee, Sang-Youn
    • The Journal of Distribution Science
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    • v.12 no.12
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    • pp.19-26
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    • 2014
  • Purpose - This paper aims to test the effects of Korean food service franchisors' and franchisees' TSI (Transaction Specific Investment) on dependence and trust toward the franchisor and re-contract intention. The study examines the effects of both franchisors' and franchisees' TSI on dependence and trust, as compared with Ganesan (1994). Research design, data, and methodology - Data were collected from 495 Korean food service franchisees and analyzed with structural equation modeling using path analysis through SPSS 18.0 and AMOS 18.0. Results - 1) The franchisor's TSI has positive effects on the franchisee's dependence and trust toward the franchisor. 2) The franchisee's TSI has a positive effect on the franchisee's dependence toward the franchisor. 3) The franchisee's dependence and trust have positive effects on commitment. 4) The franchisee's dependence, trust, and commitment have a positive effect on re-contract intention. Conclusions - The franchisor's and franchisee's TSI affect the franchisee's dependence and trust toward the franchisor. The franchisee's dependence and trust influence commitment and re-contract intention. This has managerial implications for franchisors striving to raise franchisees' re-contract intention.

Franchisee's Cognition on Franchise-contract in Foodservice Industry (외식 프랜차이지의 가맹 계약 법률 인식에 관한 연구)

  • Park, Jae-Ho;Cheon, Hee-Sook
    • Culinary science and hospitality research
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    • v.12 no.4
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    • pp.46-62
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    • 2006
  • This study researched unequal trades and analyzed the difference of legal relation control between the franchisor and the franchisee in foodservice industry. The purpose of this study was the preparatory process for basic data to establish a statute law for the franchisee in foodservice industry. We made up a questionnaire for 53 franchisees in March 2004 and analysed spss 10.0. This result was as follows. First, the special office was needed for publicity activities of law related franchise and the investigation of a right in the written contract for a franchisee. Second, there should be the conformation and objective criteria of monopolistic goodwill in legal proceedings. Third, the larger the scale of franchisees was, the less efficiently the conflicts between franchisors and franchisees were controlled.

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The Impact of Entrepreneurship of Franchisees on Their Business Performance : Mediation Effects of Market Orientation and Relationship Commitment (프랜차이즈 가맹점의 창업정신이 경영성과에 미치는 영향 : 본사의 시장지향성과 가맹점 관계몰입의 매개효과)

  • Yoon, Sung-Wook;Park, Sung-Il
    • Journal of Distribution Research
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    • v.13 no.3
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    • pp.101-125
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    • 2008
  • This research suggests an ideal role between franchisee and franchisee for survival and development of the Korean franchise business by identifying causal relationships between entrepreneurship of franchisees and their business performance. Besides, when considering multi-dimensional features of a franchise system, this study aims to show that the market orientation of the franchisee and the relationship commitment between franchisee and franchisee will play an important mediating role to achieve a better business performance. Thus specific causal relationships among sub-dimensional constructs of entrepreneurship and market orientations were investigated. They are innovativeness, risk-taking propensity, pro-activeness, information creation, intelligence generation, intelligence dissemination, response design, response implementation. The results demonstrate that pro-activeness of franchisee plays a crucial role for franchisee's business performance. It was noted that franchisor's market orientation and innovativeness is also important for high market orientation of franchisor. The higher the market orientation of franchisor was, the higher relationship commitment of franchisee was formed. By identifying the mediation effect of relationship commitment and market orientation of franchisor, this paper showed that relationship commitment positively affect the improvement of franchisee's business performance. Above all, it should be noted that this research empirically identified the relationship between franchisee's entrepreneurship and business performance that most of the previous researchers have ignored. Furthermore, the analysis was conducted at sub-dimensional construct level. It is expected that empirical results from this study will be able to provide a meaningful framework and theoretical basis for future research on franchise, entrepreneurship and market orientation.

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A Study on the franchisee satisfaction in the foodservice franchise industry (외식프랜차이즈 시스템하의 동인별 고객만족도에 관한 연구)

  • 홍기운;김형준
    • Culinary science and hospitality research
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    • v.6 no.3
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    • pp.119-147
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    • 2000
  • This Study is performed to research a customer satisfaction to a Franchisee on the food franchise industry. In future, the food industry will be complicated and various. So customer needs also will be complicated. Consequently. a study of customer satisfaction will be researched continuously for corresponding an industrial transfiguration and a customer variety. The result of this study, a Franchisee satisfaction on the food franchise industry is evaluated below the average. This result can be happened by the scale of food franchise industry. However actually it has caused by the lack of Franchisee management mind, the capability of head office, and the lack of competitive power. The mind of service for customer, hygiene and cleanness mind, and the lack of marketing strategies and strategic management can not be satisfied of customer. Also customer value creation can not be made. So the education training and marketing strategies for Franchisee on the food franchise industry have to be requested. And a continuous study for customer satisfaction that correspond with the characteristics of industrial classification be raised.

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The Influence of Franchisors' Supportive Activities on Franchisees' Loyalty and Performance in the Franchised Restaurants (외식산업에서의 가맹본부의 지원이 가맹점 충성도 및 성과에 미치는 영향)

  • Park, Ju-Young;Roh, Ki-Yup;Choi, Ja-Young
    • Journal of Digital Convergence
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    • v.6 no.2
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    • pp.77-86
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    • 2008
  • This study investigated how the franchisor's supportive activities influence the franchisee's loyalty and consequently their perceived performance in the franchised restaurants. The study found that the franchisor could increase the franchisee's loyalty through supportive activities and the franchise performance in results. However, the franchisor's advertising and promotion supports did not influence the franchisee's loyalty increase, but increase the franchisee's perceived performance. In summary, supportive activities such as efficient franchise system and advisory activities could be a starting point towards high franchise performance.

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Effects of B2B Transaction fairness Between Travel Agencies on Travel Franchisee's Relationship-orientation and Performance (여행사간 B2B 거래공정성이 가맹여행사의 관계지향성과 성과에 미치는 영향)

  • Seo, Sun
    • The Journal of the Korea Contents Association
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    • v.12 no.5
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    • pp.404-414
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    • 2012
  • B2B2C distribution channel between travel agencies, the travel franchiser's fairness become a big issue. So this study examines the effects of B2B transaction fairness between travel agencies on relationship-orientation and travel franchisee's performance. The research results are as follows: First, the most influential factor on the franchisee's performance was found as relationship-orientation factor. Second, among the 3 variable factors of B2B transaction fairness, the most influential factor on the franchisee's relationship-orientation was found as interactional fairness. And procedural fairness was found as next. Third, distributive fairness and interactional fairness were found to have a significant effect on franchisee's financial performance. And distributive fairness and procedural fairness were found to have a significant effect on franchisee's non-financial competency. Conclusively, excellent employees of travel franchiser' are the most valuable factors in B2B2C transactions due to the nature of the travel industry where human services are valued above everything else.