Difference between Franchisers with and without Direct Retail Stores

The new regulation was introduced to the franchise market of South Korea in that an applicant who wants to be a franchiser must set up direct retail stores and run them for at least one year before recruiting franchisees. Considering the purpose of the regulation, it is inferred that once franchiser...

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Main Author: Jin Hyung Lee
Format: Article
Language:English
Published: World Scientific Publishing 2024-06-01
Series:International Journal of Empirical Economics
Subjects:
Online Access:https://www.worldscientific.com/doi/10.1142/S2810943024500057
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author Jin Hyung Lee
author_facet Jin Hyung Lee
author_sort Jin Hyung Lee
collection DOAJ
description The new regulation was introduced to the franchise market of South Korea in that an applicant who wants to be a franchiser must set up direct retail stores and run them for at least one year before recruiting franchisees. Considering the purpose of the regulation, it is inferred that once franchisers run their own stores, their franchisees would be better off than otherwise. This paper addresses one reason that the Korea Fair Trade Commission has no choice but to introduce the regulation. Along the line, this paper investigates whether franchisees would have a more likelihood to make profit in case of franchisers operating their own stores. The result demonstrates that this case could be true since the operation of franchiser-owned stores could be helpful in reducing the cost of franchisees.
format Article
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institution OA Journals
issn 2810-9430
2810-9449
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publishDate 2024-06-01
publisher World Scientific Publishing
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series International Journal of Empirical Economics
spelling doaj-art-45048928b29b423a80d3ba2d067338202025-08-20T02:22:38ZengWorld Scientific PublishingInternational Journal of Empirical Economics2810-94302810-94492024-06-01030210.1142/S2810943024500057Difference between Franchisers with and without Direct Retail StoresJin Hyung Lee0Korea Fair Trade Mediation Agency, Seoul, South KoreaThe new regulation was introduced to the franchise market of South Korea in that an applicant who wants to be a franchiser must set up direct retail stores and run them for at least one year before recruiting franchisees. Considering the purpose of the regulation, it is inferred that once franchisers run their own stores, their franchisees would be better off than otherwise. This paper addresses one reason that the Korea Fair Trade Commission has no choice but to introduce the regulation. Along the line, this paper investigates whether franchisees would have a more likelihood to make profit in case of franchisers operating their own stores. The result demonstrates that this case could be true since the operation of franchiser-owned stores could be helpful in reducing the cost of franchisees.https://www.worldscientific.com/doi/10.1142/S2810943024500057Franchise marketmarket saturationregulation
spellingShingle Jin Hyung Lee
Difference between Franchisers with and without Direct Retail Stores
International Journal of Empirical Economics
Franchise market
market saturation
regulation
title Difference between Franchisers with and without Direct Retail Stores
title_full Difference between Franchisers with and without Direct Retail Stores
title_fullStr Difference between Franchisers with and without Direct Retail Stores
title_full_unstemmed Difference between Franchisers with and without Direct Retail Stores
title_short Difference between Franchisers with and without Direct Retail Stores
title_sort difference between franchisers with and without direct retail stores
topic Franchise market
market saturation
regulation
url https://www.worldscientific.com/doi/10.1142/S2810943024500057
work_keys_str_mv AT jinhyunglee differencebetweenfranchiserswithandwithoutdirectretailstores