Version 1
: Received: 8 November 2022 / Approved: 15 November 2022 / Online: 15 November 2022 (03:15:09 CET)
Version 2
: Received: 8 March 2024 / Approved: 11 March 2024 / Online: 11 March 2024 (11:03:17 CET)
Lee, J.H. Difference Between Franchisers with and without Direct Retail Stores. International Journal of Empirical Economics 2024, doi:10.1142/s2810943024500057.
Lee, J.H. Difference Between Franchisers with and without Direct Retail Stores. International Journal of Empirical Economics 2024, doi:10.1142/s2810943024500057.
Lee, J.H. Difference Between Franchisers with and without Direct Retail Stores. International Journal of Empirical Economics 2024, doi:10.1142/s2810943024500057.
Lee, J.H. Difference Between Franchisers with and without Direct Retail Stores. International Journal of Empirical Economics 2024, doi:10.1142/s2810943024500057.
Abstract
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. Thus, this paper investigates whether franchisees would have the more likelihood to make profit in the case of that franchisers operate their own stores. The result demonstrates that this case could be true. Furthermore, the result also shows that one plausible reason is that the operation of franchiser owned stores could be helpful in reducing cost of franchisees.
Keywords
franchise market; market saturation; regulation
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
