Franchise Business Research Articles

Royalty Fee Bisnis Waralaba Ritel di Kota Makassar dalam Perspektif Hukum Ekonomi Syariah

The aim of this research was to determine and understand the royalty fees for retail store franchise business in the perspective of Islamic economic law in the city of Makassar. This research was a type of qualitative descriptive research (non-statistical) using normative, phenomenological, and sociological approaches. Findings of this research revealed that: First, the franchise of company X with its franchisee was in accordance with the Islamic law, there was no element of fraud in terms of contracts and agreements which was implemented in transparency. While, the franchise of company Y and its franchisee, there were different perceptions of policies related to the contract and franchise agreement, namely the absence of a written signing so that it was not in accordance with sharia, but both parties agreed on considerations and amendment policies that made specifically by the franchisee. Second, the implementation of royalty fees between the two companies had been carried out in transparency. The difference of both companies and their franchisees was from the policy of late payment of royalty fees. Company X and its franchisee used a maximum three-month deadline with an interest system, this was not adjusted to Islamic law because interest includes usury. Then, company Y and its franchisee would absolutely not use the delay system policy, because the royalty fee would automatically be deducted from the franchisee's cashback by purchasing products at Company Y.

PROGRAM FOR THE DEVELOPMENT OF A FRANCHISE BUSINESS NETWORK ON THE MARKET

The franchise model is currently the most profitable, fast-growing business format that ensures the economic growth of the regional and Russian economy. The subject of the study was the program for the development of a franchise business network in the market. The purpose of this study is to develop effective management measures to expand the use of franchise relations in business networks. The use of the author's approach allowed to build a step-by-step program for scaling a ready-made partner business and increase the level of transparency of franchise relations. The practical significance lies in the development of a set of practical steps within the framework of the implementation of the action program to enhance the use of franchising in the Russian economy, which will increase the number of new participants in franchise systems.

CRM 프로세스 관점에서 네일 뷰티 비즈니스의 고객 관계강화 연구

This study attempted to investigate i) value factors in a business model, ii) service justice, and iii) relationship commitment-voluntary behavior relations from the perspectives of acquisition, maintenance, and expansion & reinforcement of customer relationships, respectively, using a structural model. For this, a total of 628 consumers who had received nail services in the past were chosen and classified by business type (sole proprietorship, franchise). After path analysis, the results found the following: First, in a sole proprietorship business, value proposal, core activity, customer relationship, information channel, and core resources had a significant influence on distributive justice, while core activity, customer relationship, information channel, and core resources revealed a statistically significant effect on procedural justice. In addition, value proposal, key partner, core activity, customer relationship, information channel, and core resources showed a statistically significant influence on interactional justice. In the franchise business model, value proposal and core resources significantly influenced distributive justice, while value proposal, core activity, and core resources revealed a significant effect on procedural justice. Value proposal, key partner, information channel, and core resources showed a statistically significant effect on interactional justice. Second, distributive, procedural, and interactional justices had a significant influence on relationship commitment in both sole proprietorship and franchise models. Third, relationship commitment also showed a statistically significant effect on voluntary behavior in both business models.

Franchising Business Model Implementation

The article presents an analysis of implementing franchising as a business model, the risks inherent from the business side, the impact of working with franchisees and marketing on the franchising business model. It discusses methods of managing business (strategic management) during expansion, and also describes business development tools, based on the franchise business model. It gives an analysis of the most important issues that require attention when planning a large impact on the final result (the success of the created business model). The article includes an analysis of the franchise marketing toolkit as a key factor in planning on a franchise business model and identifying the right channels to reach the right audience. In addition to planning and marketing, acceptable options for tackling various challenges appearing at different stages of building a franchising business model are considered and all ways of the company's development in the current situation are analyzed.

Issues and challenges of unregistered franchise business: A Malaysian legal perspective

The Malaysian Parliament had enacted the Franchise Act in 1998 and one of the main purposes of this Act is to monitor the registration and regulate franchise businesses in Malaysia to ensure that all the franchise businesses are following laws and regulation. Registration of franchisor (including registration of foreign franchisor) and franchisee has been stated in section 6 and 6B of the Franchise Act 1998. However, the Franchise Act 1998 is silent whether registration of a franchise business is mandatory. Meanwhile, the next issue is whether an unregistered franchise business established under a licensing or dealership agreement can register the franchise after the conclusion of the licensing agreement. The objective of this article is to look into the legal perspective of unregistered franchise business in Malaysia and suggest some proposals on how to overcome the legal issues of unregistered franchise business in Malaysia. This is qualitative study that involves a systematic study of philosophical and academic views through literatures. Therefore, this study is not an empirical study but rather a library study from various primary and secondary data sources. The study found that the Franchise Act 1998 may post a business risk to businesses intended to expand. As an innocuous venture agreement may end up becoming a franchise agreement, and an unregistered business owner may suddenly find himself at the short end of the stick, may be subject to the civil and criminal liabilities due to non-compliance of the Franchise Act 1998. As such, it is suggested that the Franchise Act 1998 should provide more monitoring and quality control over a potential franchise business before it is offered to protentional franchisees.@font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-536870145 1107305727 0 0 415 0;}@font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-536859905 -1073732485 9 0 511 0;}p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:""; margin-top:0cm; margin-right:0cm; margin-bottom:6.0pt; margin-left:0cm; text-align:justify; line-height:150%; mso-pagination:widow-orphan; font-size:12.0pt; mso-bidi-font-size:11.0pt; font-family:"Times New Roman",serif; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:ES-MX; mso-fareast-language:EN-US;}.MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:11.0pt; mso-ansi-font-size:11.0pt; mso-bidi-font-size:11.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi; mso-ansi-language:ES; mso-fareast-language:EN-US;}.MsoPapDefault {mso-style-type:export-only; margin-bottom:8.0pt; line-height:107%;}div.WordSection1 {page:WordSection1;}

How Australian SMEs engage social media as digital touchpoints – a content analysis

ABSTRACT The extent Australian SMEs have progressively adopted social and digital touchpoints varies across industry business sectors. A lack of study into Australian SMEs’ Local Area Marketing (LAM) and digital touchpoint online engagement presence motivates this research. We adopt a website content analysis of 78 randomly selected Australian SMEs and franchises assessing their website presence. A comparison against two earlier explorations notes SME business sector differences. Franchises appear to have higher social media and touchpoint channel presences than SMEs. Discrepancies among the business sectors concerning touchpoint activation and engagement trends, suggest a decline in social media touchpoint presence amongst SMEs. ‘Commercial’ and ‘Professional’ franchise business sectors reflect Digital Touchpoint Involvement growth compared to earlier findings. For SMEs, ‘Commercial’ and ‘Trades’ business sectors indicate noticeable growth. The research reveals inconsistency across website activation touchpoints. In conclusion, a diagnostics mapping tool is proposed to measure touchpoint activation and identify potential touchpoint activation gaps.

가맹사업거래의 공정화에 관한 법률상 징벌적 손해배상에 대한 연구

가맹사업거래의 공정화에 관한 법률상 징벌적 손해배상에 대한 연구

Penguatan Hukum Merek dalam Perjanjian Lisensi Guna Peningkatan Taraf Ekonomi Masyarakat di Indonesia

The issue of licensing agreements to improve the standard of living of people in Indonesia is very interesting to be studied in depth via intellectual discussions. Various problems should be taken as lessons for Indonesian people, for example: registration of the Toraja coffee trademark by the American businessmen, sambal uleg from Central Java and Gayo coffee by the Dutch and the song Sayang Sayange from Maluku and the legend of Garlic and Onion by Malaysia. The purpose of writing this article is to provide an explanation of the necessity to strengthen understanding of trademark law in the license agreement as an effort to improve the economic level of the Indonesian people. The problems focus on the government actions against the violations of Intellectual Property Rights (IPR) and as well as the roles of the government and society to improve the economic level of society through strengthening trademark law in license agreements. The research was conducted by using a normative legal research. The result of the research described in this article is that the economic level of the community can be increased by conducting a franchise business, providing opportunities for the franchisor to exploit economic rights in order to multiply and get the maximum profit at a low cost because it is borne by the franchisee.Keywords: Trademark, License Agreement, Economic Strata

The Ethiopian Well-Known Trademark Protection System and Its Implication on Foreign Direct Investment

Due to the ever increasing trans-border movement, internet connection and globalization, individuals in different corner of the world are becoming easily accustomed to international well-known marks even though the owners of such marks do not produce/supply goods/services within a particular territory. Be this as it may, coupled with the conventional registration and territorial based system that is pursued in respect of the protection of trademarks, the dynamic change of such interaction among the global community have opened a fertile ground for trademark squatters to register and exploit the international well-known marks of others. On the backdrop of this fact, this manuscript investigates the Ethiopian well-known trademark protection system in light of its capacity to promote the interest of the country, in particular in respect of its potential implication on the foreign direct investment flow of the country. The study has made use of primary and secondary sources of data and qualitative analysis to investigate the implication of the regime on the foreign direct investment flow of the country. The finding is that the existing international well-known trademark protection legal framework, which hangs up the special protection of such marks to a future international convention, apart from its potential threat on franchise business and foreign direct investment flow, it is deterring the country from benefiting out of employment opportunities and declaration fees which the country shall consider forth with. Keywords: International well-known trademark, Foreign Direct Investment, Franchise business, Registration, Territorial. DOI: 10.7176/JLPG/106-01 Publication date: February 28 th 2021

DECISION SUPPORT SYSTEM FOR DETERMINING APPROPRIATE FRANCHISE LOCATIONS USING THE PROFILE MATCHING METHOD

Finding the appropriate location is crucial when starting a franchise. The appropriate location will affect the overall business risk and profitability of the franchise. Nevertheless, some franchises have a bankruptcy in running their business. One of the factors that contribute to the bankruptcy of a franchise business is a location that does not meet several criteria that support business success. Therefore, the purpose of this study is to propose a decision support system model to determine the location of the franchise based on matching profiles between the actual data value of a location and the value of the location profile expected by the franchisor. The profile matching method has a better level of objectivity because it measures the value of each indicator variable. The criteria for determining the location of a franchise are potential customers, access to location, competition, and costs. The test results show that the decision support system to determine the location of the franchise using the profile matching method meets the functional requirements. This decision support system helps Franchisees to determine the appropriate when starting a franchise

A Study On the Development of the Food Service Franchise Business

A Study On the Development of the Food Service Franchise Business

Local brand franchise competition in the disruption era

Local brand franchise business, particularly culinary, has been rapidly developed in this disruption era. This is in line with the society’s need for delicious but affordable culinary. There is a comprehensive relation-blend of cultural, business, and lifestyle responses. This research examined the factors affecting local brand franchises in the business competition in the disruption era. Using a descriptive qualitative method, the results indicated that local brand franchises are a part of economic disruption, because they create an entirely new market, providing high-quality products at lower prices. In this disruption era, local brand franchises are limited by binding agreements on franchising, courage in creativity and innovation, responsive to instant culture, adaptive to changes in consumer lifestyle, multi-level hegemony, and capitalism.

WAITING FOR THE ADOPTION OF THE DRAFT CIVIL CODE OF THE REPUBLIC OF SERBIA (IMPORTANT FOR THE LAW REGULATION OF THE FRANCHISING AGREEMENT)

In 2006, the Commission for drafting the Civil Code of the Republic of Serbia was established. The first book of the Civil Code was completed and made available to the public in 2007. To the present, not much progress has been made in the effort to adopt and enter into force the Civil Code, with primaly work being done developong amendments to the working versions. The working versions of the code envisage the regulation of a new and specific agreement, the franchise agreement. Listening to the needs of the market, as well as the need to introduce this type of business into legal frameworks, the editors of the Civil Code (now the Draft Civil Code – DCC) for the first time legally standardise a franchise agreement.  It should be noted that legal standardisation of franchising agreements has significant advantages in terms of legal transactions and contracting parties.  However, although there is are strong intentions, it should be noted that there are some shortcomings in the legal standardisation of the franchising agreement in the Serbian document. Shortcomings are observed in the standardisation of the franchising agreement, especially in circumstances where the franchising agreement is unknown to much of the legal theory, business and case law of the Republic of Serbia. This creates the feeling that this business was approached in a superficial manner without a deeper analytical approach, looking at solutions provided in the legal acts and case law of countries with developed franchising business.  The shortcomings of the DCC of the Republic of Serbia are in the part related to legal standardisation of franchising agreements that could be brought to the attention of: a) the concept of contracting parties; b) the subject matter of the agreement; c) specific obligations (e.g. obligation of the franchisee to apply the business concept of franchise network in an independent business); d) use of legal implants without explaining their content (e.g. goodwill), etc.  The author will point out the shortcomings of legal standardisation of the franchise agreement in the DCC and the possible solutions.  Keywords: Draft Civil Code of Serbia, franchising, franchisor, franchisee, franchising agreement, regulation, registration, sub-franchising, transferred rights, pre-contractual disclosure, goodwill

The Effect of Franchise SERVQUAL on the Pre & Post Opening Satisfaction and the Business Performance

This study is designed to examine the effect of franchise SERVQUAL on business satisfaction and business performance, and examined previous studies, herewith designed research model based on it. In order to select a brand before starting a business, business owners who run a franchise restaurant were investigated the factors that were important to them and the satisfaction level after the business proceeds. By analyzing how satisfaction with the business affects business performance, it aims to provide implications for the criteria for efficient brand selection to prospective entrepreneurs who wish to start a business as a franchise in the future. The questionnaire survey was conducted on business owners running chicken franchises in all areas of Seoul. A frequency analysis was conducted to analyze the demographic characteristics of the survey subjects. Factor analysis and reliability analysis were performed to verify the validity and reliability of the measurement tool, and the hypothesis was verified through multiple regression analysis. The detailed research results are as follows. First, franchise SERVQUAL was found to have a significant effect on satisfaction before and after opening. Second, it was found that satisfaction before and after franchise opening had a significant effect on market performance and contract renewal performance. If the franchise outlet operators are satisfied with the SERVQUAL components such as responsiveness, assurance, empathy, convenience, reliability, quality of materials and information system before or after opening, it is possible to predict that sales will increase and opportunities for renewal will increase. This is meaningful in presenting comprehensive business performance improvement plans to prospective entrepreneurs and headquarter business associates who choose a franchise business in the future.

납품업자와의 특약으로 대규모유통업법 적용을 배제할 수 있는지 여부 - 대법원 2020. 6. 26. 선고 2016두55896 판결을 중심으로 -

대규모유통업법이 제정·시행된 이후 대규모유통업법의 법리를 정립하는 대법원 판결이 계속 선고되고 있다. 본 사건은 대규모유통업자와 납품업자 사이에 대규모유통업법 제8조의 내용과 다르게 정한 특약이 존재하는 경우이다. 대법원은 대규모유통업법에서 규정한 내용과 다르게 정한 당사자간 약정의 사법상 효력을 자발적인 동의를 얻은 경우에만 유효로 보고, 자발적 동의를 얻은 약정에 따라 지급을 보류한 것이면 대규모유통업법 제8조 위반이 아니라고 보고 있다. 이는 당사자 간의 사적자치를 존중하여 약정의 사법적 효력을 인정하되, 거래상 열위에 있는 납품업자를 보호하기 위하여 납품업자가 자발적으로 동의하고 이러한 사실을 대규모유통업자가 입증한 경우에만 약정의 사법적 효력 및 대규모유통업법 위반여부를 판단함에 있어 정당화사유로 인정하겠다는 것이다. 대규모유통업자와 납품업자의 거래는 상인간의 거래이고, 상인 간의 거래에는 경쟁당국의 개입이 최소화되어야 한다는 점에서 대법원의 판단은 타당하고, 다른 대규모유통업법 위반행위의 위법성 판단기준이 될 수 있다. 그러나, 대규모 유통업자와 납품업자 사이에 자유로운 의사로 합의를 하는 것이 쉽지 않다는 전제에서 납품업자 보호를 위하여 특별법으로 제정된 대규모유통업법의 취지, 위법성 판단기준으로 부당성 및 정당화사유를 규정하지 않고 그 지급기일을 명확히 특정한 제8조의 입법취지 등을 고려할 때, 대규모유통업법 제8조가 규정한 내용과 다른 당사자 사이 약정의 효력을 인정하여 법 위반행위에 해당되지 않는다고 판단한 것은 의문점이 남는다. 또한, 이러한 해석은 행정책임은 존재하는데, 민사책임은 존재하지 않는 결과가 되어 법집행, 특히 시정명령의 하나인 지급명령 집행을 함에 있어 혼란과 효율성 저해가 발생할 수 있다. 결론적으로, 대규모유통업법 제8조를 효력규정으로 보아, 대규모유통업법 제8조와 다르게 정한 사법상 약정은 무효라고 보는 것이 납품업자의 권리구제에 보다 효율적이다. 대규모유통업법 제8조가 위법성 판단기준으로 부당성 및 정당화사유를 규정하고 있지 않음에도 불구하고, 당사자 간의 약정이 존재하는 경우 이를 정당화사유에 준하게 보아 대규모유통업법 제8조 위반이 아니라는 입장은 대규모유통업법 제8조의 입법취지에 맞지 않는 것으로 보인다.

A Legal Study on the Franchise Rule Exemptions – Exemptions Under FTC Franchise Rules –

Franchising business has been widening market share in Korea. It accounted for 6.9% of the Korea’s gross domestic product(GDP) and 4.5% of labor in 2017. To regulate unfair trade practices in the franchise business, the Koresa Fair Trade Commission(hereinafter “the KFTC”) enacted the Fair Transactions in Franchise Business Act (hereinafter “the Franchise Business Act”) in 2002 and has tightened up its monitoring, superintendence and restriction on franchise business through several law revisions. Despite all that, considering the current situation in which conflicts and disputes is present progressive. The Franchise Business Act does not apply for every franchise businesses if the total franchise fee that a franchisee pays to a franchisor during the period of up to six months from the date of the initial payment of the franchise fee does not exceed an amount prescribed by Presidential Decree not exceeding one million won or if annual sales of a franchiser are less than a certain size prescribed by Presidential Decree not exceeding 200 million won(article 3). Therefore, franchise contracts with small-scale franchisor are outside the current Act and thus it is needed to discuss amendment the act. The FTC Franchise Rule prescribes various exemptions in Franchise Disclosure Document (FDD) to be protect the prospective franchisee. For instance, minimum payment, two Years of Experience in the Same Line of Business, less than 20% of total sales, Large Franchise Investment and so on. Furthermore the fourteen states have their own franchise disclosure or registration laws prescribe exemption on the process of FDD disclosure. The exemption codes are distributed across a variety of layers between federal and state. Franchising is a newly worldwide system of business marketing, which stand on the basis of mutual collaboration between Franchisor and Franchisees. For the mutually complementary and balanced co-prosperity of franchisor and franchisee, a range of application and exemption the Franchise Rules, is needed to revise more flexible approach in The Korea Franchise Business Act.

Transformation of business partnerships in modern conditions based on franchising tools

Currently, there is a trend in the world community to form partnerships focused on cooperation between various business structures which are aimed at achieving a synergistic effect in the fulfillment of common economic interests. Modern business partnerships can be implemented in a variety of forms by using specific methods and approaches. At the same time, it has been noted that business partnerships are subject to transformation under the influence of the emergence of new technologies, methods and tools, one of which is the franchising system of relations. Taking into account the existing international experience of using franchising as an effective tool for building partnerships, further research is needed to more accurately define, systematize and quantify the strategic advantages that participants receive when forming business partnerships in modern conditions. The purpose of the paper is to identify and summarize the strategic advantages received by participants in the formation of business partnerships based on the franchising system of relations. Historical and bibliographic methods have been used to substantiate the theoretical provisions of the article. The applied part of the article is implemented with the use of modern electronic services that allow assessing the effectiveness of using the franchise system. This article examines possible forms of business partnerships, indicating specific examples of companies from Russian and foreign practice (IKEA, Tesla Motors, ACI Plastics, Sibur, Arya Home, METRO and others); a comparative analysis of the application of franchising in Russia and a number of leading foreign countries (the USA, the UK, France, Germany, Japan, etc.) has been carried out. The article presents the calculated characteristics of the project efficiency of a business partnership on the example of the Russian franchise «PIONER AUTO». The results presented in the paper show that the purchase of the abovementioned franchise will pay off in 1.5 years with further profit. The authors highlight the current trends in the development of global franchising in the context of the coronavirus pandemic in 2020 and highlight the main trends in 2021. According to the conducted research, the authors propose a model of franchising business partnership, systematize possible benefits of participants in a franchise business partnership on the basis of an earlier assessment of the possible effect.

PERLINDUNGAN HUKUM TERHADAP FRANCHISEE YANG DI RUGIKAN OLEH FRANCHISOR DALAM PERJANJIAN WARALABA

Problems that often occur in practice of franchise agreements in Indonesia wich is often the franchise receiver and franchise giver in conducting cooperation agreements do not involve the role of a notary public in making the agreement so that the form of the agreement made is only an underhand agreement, it is very detrimental and creates risks if one party violates the agreement that has been agreed upon. The agreement made by both parties is no exception the franchise agreement which is made is only a limited agreement under the hand so that the protection of the rights of each party in the franchise agreement, especially the franchisee is not enough to protect the rights attached to him, because agreements made only under the hands of the strength of proof are not perfect, unlike agreements made authentically before a notary whose proof of strength is perfect. Therefore, in practice there are still many franchisees whose are harmed by the franchise agreement agreed upon with the franchisor. This research is normative using the statutory approach and the conceptual approach. The source of legal material in this study uses primary legal material sources supported by secondary legal materials and uses legal material collection techniques through library research, the analysis in this study uses content analysis and systematic interpretation. The results showed that legal protection in franchising activities (Franchise) is regulated in Government Regulation Number 42 of 2007 concerning Franchising. The form of this cooperation agreement is outlined in the form of a written agreement that contains several standard and additional clauses that have been discussed previously between the two parties. , this is what limits the franchisee by stating that after the termination of the agreement, the franchisee is limited to not doing business in a similar business to the previous franchise business that has been undertaken for a certain period. To protect the rights of the franchisee, the franchise agreement agreed upon must be in the form of a notary deed (authentic). It aims to ensure justice sbetween the parties and legal certainty of the contents of the franchise agreement more secure.

Yeobo Topokki Franchise Business Development Strategy with Business Model Canvas Approach

Indonesians in general especially for younger generation, are more familiar with foreign cultures rather than being used to their own domestic culture, this phenomenon also occurred to the food aspect as a culture. This research aims to examine the development strategy of business model canvas approach in yeobo topokki franchise. The method used in this study is a descriptive business model, canvas model, and SWOT Analysis. The research was conducted in CV Usaha Anak Bangsa Perkasa which is located in Grand Depok City, Kalimulya, Depok, West Java. This study was conducted in April 2019 until December 2019The results indicated that Yeobo Topokki accepted the business model improvement and the results of the strategy formulation that the company was in an aggressive position. Based on this analysis, it can be concluded that c ompanies need to create value-added elements of the value proposition to create interest from prospective customers, such as by doing some certification on the products offered .

O serviço postal enquanto serviço público e as agências franqueadas dos Correios

Este artigo, por meio de revisão bibliográfica, pesquisa jurisprudencial e empregando o método dedutivo, investiga como é realizada a classificação do serviço postal enquanto serviço público e sua relação com o privilégio postal reservado ao Estado. Analisa o artigo 21, X, da Constituição de 1988, identificando o que a doutrina e o Supremo Tribunal Federal entendem por serviço postal em sentido estrito. Verifica as condições e limites para a transferência das atividades realizadas pela Empresa Brasileira de Correios e Telégrafos (Correios) para o setor privado, por meio de franquia empresarial, regulada pela Lei 13.966/2019.