Moreover, the absence of policies which are purposed to control the franchise practice leads Korean food service industries in constant conflicts and unfair trading.
In order to resolve stated problems and to achieve adequate development in food service industry, plans that consider not only the legal issues but balancing the benefits of participants including franchisor, franchisee and third party are need to be established. Furthermore, this plan should also include plans for minimising damage and conflict between those participants. Therefore, this study will be focusing on current situation of Korean food service industry and the existing problems in franchising. The solution for the problems will be provided consequently.
1.2 METHODOLOGY AND EXTENT OF STUDY .
Literature research has been made as a methodology and used literatures are including thesis, journals and other literature works which topic are focused on the franchise practice and operations. The list of definitions will be provided initially. Moreover, the issues of study will extended from analysis of background and the current status of Korean food service industry, to studies of present operation that is focused on both home and abroad brands, in order to observe the problems. The suggestions on its development plan will be made in consequent to previously stated analysis and studies.
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CHAPTER II.
FRANCHISING.
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2.1 INTRODUCTION.
Although, concept of franchising may be differed by its legal relations and its fields of implementation, it is clear that it is a business concept that brought innovative changes. Especially the growth in food service industry was unique and Morrison (1989) once stated that 75% of the fast food industries in the US are operated by the franchise organisations (Morrison, 1989). The word franchise' came from the French verb franchir' and the verb afranchir', both of which mean to free or to enfranchise' (Housden, 1984).