The Effects of the Relational Commitment and Performance on the Franchisor's Administrative Characteristic and Ethic Fairness in the Franchise System of Food Service Business

This paper is an exploratory survey that examines franchising in Korea. The purpose of this discussion paper therefore, is to shed light on the extent to which franchising is impacted by economic, legal, and investment factors in Korea. Based on a literature synthesis, the paper proposes reasons for the success of franchising in Korea. In order to obtain a sample frame of potential respondents to the survey, the database of the Franchising Council of Korea was used to locate the names of franchise groups. In total, 135 completed questionnaires were received in total, of which 128 were usable. The paper contributes to understanding franchising in Korea. It offers some insights and assistance to franchisors hoping to open up franchises. the main contribution of this paper to the measurement issues related to franchisee's performance is onefold: it estimates some determinant factors (distributive fairness, procedural fairness, support, traning, service) of franchisee's performance. It is hoped that this discussion will assist franchisors to become better prepared for the next upturn in the economic cycle.