Research Framework for International Franchising

국문 초록 (Abstract)

본 연구는 국내외 프랜차이즈의 해외진출에 대한 연구들을 바탕으로 국제프랜차이징연구의 전체적인 연구체계를 세워보고 연구체계를 형성하고 있는 연구요인들을 확인하여 각 연구요소별로 이루어지는 연구주제와 내용을 살펴보고 앞으로의 연구주제들을 제안하고자 한다. 조요한 연구요소들은 국제프랜차이징의 동기 및 환경 요소와 진출의사결정 국제프랜차이징의 진입양식 및 발전전략 국제프랜차이징의 운영전략 및 국제프랜차이징의 성과이다. 이외에도 국제프랜차이징 연구에 적용할 수 있는 대리인이론 자원기반이론 거래비용이론 조직학습이론 및 해외진출이론들을 설명하였다. 또한 국제프랜차이징연구에서보다 중점적으로 개발해야 할 질적 양적 방법론을 소개하였으며 마지막으로 국내연구의 동향을 정리하여 추후의 연구방향을 종합적으로 정리하였다.

다국어 초록 (Multilingual Abstract)

The purpose of this research is to construct research framework for international franchising based on existing literature and to identify research components in the framework Franchise can be defined as management styles that allow franchisee use various management assets of franchisor in order to make or sell product or service It can be divided into product distribution franchise that is designed to sell products and business format franchise that is designed for running it as business whatever its form is International franchising can be defined as a way of internationalization of franchisor to foreign country by providing its business format or package to franchisee of host country International franchising is growing fast for last four decades but academic research on this is quite limited Especially in Korea, research about international franchising is carried out on by case study format with single case or empirical study format with survey based on domestic franchise theory Therefore, this paper tries to review existing literature on international franchising research, providing research framework, and then stimulating new research on this field.
International franchising research components include motives and environmental factors for decision of expanding to international franchising, entrance modes and development plan for international franchising, contracts and management strategy of international franchising, and various performance measures from different perspectives First, motives of international franchising are fee collection from franchisee Also it provides easier way to expanding to foreign country The other motives including increase total sales volume, occupying better strategic position, getting quality resources, and improving efficiency
Environmental factors that facilitating international franchising encompasses economic condition, trend, and legal or political factors in host and/ or home countries In addition, control power and risk management capability of franchisor plays critical role in successful franchising contract Final decision to enter foreign country vial franchising is determined by numerous factors like history, size, growth, competitiveness, management system, bonding capability, indust교 characteristics of franchisor.
After deciding to enter into foreign country, franchisor needs to set entrance modes of international franchising Within contractual mode, there are master franchising and area developing franchising, Licensing, direct franchising, and joint venture Theories about entrance mode selection contain concepts of efficiency, knowledge-based approach, competence-based approach, agent theory, and governance cost.
The next step after entrance decision is operation strategy Operation strategy starts with selecting a target city and a target country for franchising In order to finding, screening targets, franchisor needs to collect information about candidates Critical information includes brand patent, commercial laws, regulations, market conditions, country risk, and industry analysis After selecting a target city in target country, franchisor needs to select franchisee, in other word, partner The first important criteria for selecting partners are financial credibility and capability, possession of real estate And cultural similarity and knowledge about franchisor and/or home country are also recognized as critical criteria. The most important element in operating strategy is legal document between franchisor and franchisee with home and host countries Terms and conditions in legal documents give objective information about characteristics of franchising agreement for academic research Legal documents have definitions of terminology , territory and exclusivity, agreement of term, initial fee, continuing fees, clearing currency, and rights about sub-franchising Also, legal documents could have terms about softer elements like training program and operation