The Purpose of this study is investigating the franchisee's recognitions, problems and improvable method on the production system in the franchisee industries and giving the useful research dates that increase competitiveness to those who operates food service franchise system in korea. To attain objects of this study, the literature review and empirical study was done. The results of this study on the franchisee's recognition on the product-supply system of franchisee corporation are as follows; First, the list of high ranked factors in the production system are the management system, quality of raw materials, quality of food products, quality of food sanitation and raw material cost. The most franchisee recognize that the establishment of a franchise system infrastructure and the physical distribution are the best important issues. Second, the list of high ranked factors of an efficiency in the kitchen areas are the product differentiation, distribution system and raw material cost. 'The most franchisee are satisfied with the product differentiation and distribution system but they are unsatisfied with raw material costs. Last, the comments on the physical distribution of franchisee are suggested.