Franchise business has become one of the promising business over the world. Many foreign franchise chains entered Korean market and have actively done business and especially, food service chains of them have been growing rapidly. However, though sev...
Franchise business has become one of the promising business over the world. Many foreign franchise chains entered Korean market and have actively done business and especially, food service chains of them have been growing rapidly. However, though several studies on the franchise system have been conducted domestically, those on the performances of franchisee can be rarely found.
Therefore, this study focused on the factors that determine the business performance of the franchisee of foreign franchise chains, and statistics of the collected questionnaire materials were compiled and analyzed with SPSS PC+ for the purpose of the objectives of the study.
The several significant findings are as follows:
Firstly, all the factors used in this study were shown to affect to franchisee's satisfaction on the sales. The factors that affect positively are franchisers' support for the franchisee, capability of franchisee, the characteristics of the relationship between the franchiser and the franchisee, and location of franchisee's store. The negative factor is competition of the industry.
Secondly, the factors influencing significantly to franchisee's satisfaction in the sales, profitability, and overall management were shown to be franchiser's supports of marketing activities to the franchisee, franchisee's quality management, related marketing between franchiser and franchisee, and store location of franchisee.
Thirdly, factors that affect significantly to the franchisee's satisfaction in the sales and overall management but profitability include franchisers' supports in the management of franchisee, franchisee's ability in the overall management and sanitation management, the managerial relationship between the franchiser and the franchisee, and competition in the industry.
Fourthly, factors that affect significantly to the franchisee's satisfaction in the sales but profitability and overall management are franchisers' supports in the training and personnel management of the franchise and training ability of the franchise.
Based on these findings, I may provide several suggestions:
Firstly, all the factors used in this study affect positively to the franchisee's satisfaction in the sales, but not many factors of them affected significantly to the franchisee's satisfaction in all aspects. Thus, the franchisee who do business or want to start-up business in the food service franchise industry will have to take the factors affecting significantly in all aspects into considerations. That is to say, franchisee should locate his store in the best place, choose the franchiser that support actively him in the marketing activities other than else, and make every effort to enhance the relationship with the franchiser.
Secondly, franchisee should focus its energies on the profitability to make a success in the long run. Growth in the sales volume without profitability may seem to expand market share in the short run, however, hamper stable management basis in the long run. Therefore, franchisee should pursue not only expansion of sales but also profitability by enhancing efficiency.