Abstract
Purpose: Diversification is a strategy to secure competitive advantage, improve performance, and survive. Diversification studies have been conducted in various fields such as motivation and performance. Diversification is actively taking place in the franchise industry, but research on the diversification of franchisor is lacking. Therefore, in this study, we analyzed the influence of franchisor characteristics on diversification and how the characteristics of franchisors affect diversification according to the number of franchise brands owned by the franchisor. Furthermore, the impact of the diversification of franchisor on performance was analyzed. Research design, data, and methodology: Regression analysis was conducted to analyze the effect of franchise characteristics on franchisor diversification. Next, in the effect of franchise characteristics on diversification, the moderating effect of the number of franchise brands owned by the franchisor was analyzed. In addition, the impact of the diversification of franchisor on performance was analyzed. As an additional analysis, the characteristics of franchisor according to the survival period of franchise brands and the difference in average sales of existing and new franchise brands after franchise brand expansion were compared. For this purpose, the information disclosure data from 2015 to 2020 registered for franchise business transactions with the Fair Trade Commission was used and analyzed. Results: As a result of a regression analysis to confirm the effect of franchisor
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