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The Korean food franchise industry: Diverse development and conceptual definitions of a food safety managing body

Factors in the operation of diversified food franchises in Korea have a direct impact on food safety management. The body in charge of systemic food safety management must be clearly identified and provided with a statute‐based system governing all aspects of food safety management. Several types of Korean food franchise business operations were first defined and categorized. Factors related to each food franchise operation have a direct impact on determining the managing body and its responsibility and authority. Multiple Korean statutory systems are closely related to food safety management in each category of franchise operations. These legal systems cannot clearly define a food safety managing body, especially considering the newly emerging food franchise operation types: the master franchise, concession industry, and commercial facilities. These clues provide basic data for further reinforcement of the national statutory system. In ambiguous situations, food franchises can complement food safety management using their own tactics. PRACTICAL APPLICATIONS: Foodservice businesses, especially franchises, are currently rapidly developing in Korea. Depending on the development history of these food franchises and their growth strategies, complex new types of franchises with different operating strategies are appearing. New entities have been involved in the establishment or operation of diverse food franchise types, such as master franchises or concession businesses. This has led to a lack of clarity in the identification of the food safety or food origin managing body. In fact, that body may not even exist, while in other contexts, there may be overlapping bodies. This is because the Korean statutory system that directly governs food safety and indirectly governs food franchise operations has gaps as a result of the fast‐paced changes in the food franchise industry. The statutory system in Korea stipulates duties required of a specific subject (either a type of seller or a business owner). However, the statutory system for the Korean food industry does not address the diverse forms of franchise operations and various operating entities (such as master franchisors, master franchisees and their unit stores, direct franchisors and their unit franchisee stores, operators of nonfood commercial facilities, operators of concession businesses, and others). This study contends that if this description of the situation is accurate, the food safety management system can be supplemented by the strategic or hygienic controls of each food franchise or through inter‐business‐contract management with multiple operational entities. This study also makes a case for amending the national statutory framework.