Franchising vs. company ownership as a decision variable of the firm

Frank A. Scott

Research output: Contribution to journalArticlepeer-review

106 Scopus citations


This paper investigates the mix of franchised and company-owned outlets among franchise chains. Hypotheses are formulated about the proportion of franchised outlets and are tested using firm-level data from a national survey of franchisors. Empirical results support the hypothesis that company-owned outlets serve as a way for the franchisor to give itself an incentive to maintain system quality.

Original languageEnglish
Pages (from-to)69-81
Number of pages13
JournalReview of Industrial Organization
Issue number1
StatePublished - Feb 1995


  • Franchising
  • principal-agent

ASJC Scopus subject areas

  • Economics and Econometrics
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation


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