FRANCHISING VS COMPANY OWNERSHIP AS A DECISION VARIABLE OF THE FIRM

Authors
SCOTT FA
Citation
Fa. Scott, FRANCHISING VS COMPANY OWNERSHIP AS A DECISION VARIABLE OF THE FIRM, Review of industrial organization, 10(1), 1995, pp. 69-81
Citations number
25
Categorie Soggetti
Economics,Management
Journal title
Review of industrial organization → ACNP
ISSN journal
0889938X
Volume
10
Issue
1
Year of publication
1995
Pages
69 - 81
Database
ISI
SICI code
0889-938X(1995)10:1<69:FVCOAA>2.0.ZU;2-Y
Abstract
This paper investigates the mix of franchised and company-owned outlet s among franchise chains. Hypotheses are formulated about the proporti on of franchised outlets and are tested using firm-level data from a n ational survey of franchisors. Empirical results support the hypothesi s that company-owned outlets serve as a way for the franchisor to give itself an incentive to maintain system quality.