Improvement Plan for Problems of Franchise Industry in South Korea

In this paper, the various problems of the franchise industry in South Korea are discussed and analyzed, and solutions to these based on the research results are presented and discussed. In this study, hypotheses were formulated for creating a model. Conflict, management, fairness, and performance were designated as variables, and how these variables affect one another was investigated. A research was conducted to verify the research model, reliability analysis was conducted through the Cronbach’s coefficient, and the study hypotheses were verified using factor and regression analyses. The conflicts between and the achievements of franchisors and franchisees were examined, along with the relationships among conflict, management, fairness, and performance. Management was subdivided into the overall management by the franchisor and the franchisee’s self-management and autonomy while fairness was subdivided into distribution, procedure, and interaction fairness between the franchisor and franchisee.