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Types of Franchising Conflicts in Restaurant Business

Hyo-Jin Kim 1 YongGu Suh 1

1숙명여자대학교

Excellent Accredited

ABSTRACT

This study investigates key conflict prototypes that inhibit the win-win relationship between franchise headquarters and franchisees according to the franchise development cycle. We analyze the differences among conflict types that can occur depending on the duration of the operation and propose a strategy for sustainable franchising businesses. We identified five potential conflict types in restaurant franchising through Q methodology: Type 1, expectation mismatch; Type 2, economic dissatisfaction; Type 3, headquarters coercion; Type 4, dissatisfaction of revenue sharing; and Type 5, low trust. In the first five years of business, Type 2 and Type 5 were found to be the main sources of conflicts. On the other hand, Type 1, Type 3, and Type 4 emerged as problems after five years of operation.

Citation status

* References for papers published after 2022 are currently being built.