Franchise industry is one of the most promising industrial field in the 21st century, which takes up great proportions in the overall fields of industry.
The first reason is that the franchise business is one of the circulation system, a prerequisi...
Franchise industry is one of the most promising industrial field in the 21st century, which takes up great proportions in the overall fields of industry.
The first reason is that the franchise business is one of the circulation system, a prerequisite for all companies; Second, the franchise system is an investment effectiveness maximization business system for the maximum business effectiveness with minimum investment; Third, it could be applied to all types of industries and businesses; Fourth, it is a promising exporting business of the 21st century and at the same time a global business; Fifth, it is a type of business that carries out a role of core business in modern society where life-time job concept is fading; Sixth, as a successful business model for U. S. A, Japan, and Europe, it could advance limitlessly in the future.
The purpose of this research is to re-evaluate the franchise organizations that will lead franchise industry with high level of advancement possibility into an important form of industry and to develop and propose the franchise organization evaluation model by franchiseor ganization evaluation elements for franchise advancement, which the franchise companies must focus on, to provide a guideline for effective business strategies. On the other hand, this research will propose a selection criterion for exceptional franchise companies for those preparing to open business to promote successful opening of the business and further more to provide an objective and credible evaluation guide in the process of selecting exceptional franchise from the government, committees, universities, organs, and the press.
To accomplish the research purposes, this research selects objective evaluation criteria for exceptional franchise evaluation through the evaluation element analysis, reliability and feasibility analysis and by endowing the importance level of each evaluation category through the regression analysis develops a systematic and objective franchise organization evaluation model. The importance level of each evaluation category reflects the influence and the importance level through the regression analysis for franchise system management elements, differentiated competitve power elements, supporting elements for franchisee. Three evaluation models developed in that way verified that most performance elements were effective through the verification for three evaluation models using dependent variable such as average sales of the head office for recent three years, net income, franchisee numbers, the prospect of the company, the possibility of success. The franchise organization evaluation model developed in that way will be able to use in three viewpoints according to the subjects of evaluation. First, self-diagnoses model for the maximization of business effectiveness for the franchise company itself; The evaluation elements are composed of franchise system management, differentiated competitve power and supporting elements for franchisee. Second, franchise organization evaluation model from a viewpoint from those preparing to open business or head of pre-franchise shop; Third, a complete set of evaluation model integrating the head office and those preparing to open business ; It can be used in the process of selecting exceptional franchise by objective and credible evaluation criteria from objective third party such as the government, committees, universities, organs, consulting firms and the press . A complete evaluation model integrating the head office and those preparing to open business could be very widely used .
In conclusion, it is judged that the complete evaluation model is the most reliable among three evaluation models. The evaluation model for the head office is composed of the head office related elements. The evaluation model for those preparing to open business has high level of application as a selection criterion for exceptional franchise companies from a viewpoint from those preparing to open business. Therefore, it is judged that the complete evaluation model integrating the head office and those preparing to open business is the most objective evaluation model without one-sided view.
But it doesn't mean that two other models are useless because the complete evaluation model is the most reliable. According to the evaluation purpose, the evaluation model for the head office can be used for the evaluation to secure management effectiveness and competitve power for the franchise company itself. But from the viewpoint from those preparing to open business to select exceptional franchise companies, the evaluation model for those preparing to open business is more adequate.
Since this research is carried out for the first time in the nation as the study on the development of franchise organization evaluation model and there is no preceding study for this subject , there was some difficulty in selecting evaluation elements. Therefore, much consulting experience of the researcher was applied and the reliability analysis for survey items and the feasibility analysis for evaluation factors was given much more weight in sharing time for this research to be more objective. Due to such limits of the research , this research was completed in the level to verify corelation between the developed evaluation model and general franchise organization performance. This researcher expects that the evaluation model developed in this study will be used in real franchise industrial field as a guidline for franchise organization evaluation and more research on this field carried out and this research supplemented.