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

Frank A. Scott

doi:10.1007/BF01024260

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

Frank A. Scott

Economics

Research output: Contribution to journal › Article › peer-review

106 Scopus citations

Abstract

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 language	English
Pages (from-to)	69-81
Number of pages	13
Journal	Review of Industrial Organization
Volume	10
Issue number	1
DOIs	https://doi.org/10.1007/BF01024260
State	Published - Feb 1995

Keywords

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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10.1007/BF01024260

Cite this

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abstract = "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.",

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

Abstract

Keywords

ASJC Scopus subject areas

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