The organizational form of franchising has been shown to yield higher profits and faster growth through reducing agency costs. Why then does anyone not franchise? In this paper I argue that the diffuse residual claims of the franchise system reduce overall system quality, and that this problem is inherent in the nature of franchising. The theory is tested by examining evidence from both the res...

The relevance and impact of the internet on the business-to-business market is widely acknowledged. However, little academic attention has been paid to the adoption of internetbased technology in the Australian franchising sector. Thus this paper addresses the problem: ‘how and why Australian franchise organisations use internet-based technologies in their franchise systems?’ This research uses...

Research suggests that there are cross-cultural variations in entrepreneurial entry rates (Autio et al., 2013) and it seems that this in part stems from differences in cultural values. Hayton et al (2002) argue that differences in cultural values may mean that the extent to which entrepreneurial behaviours, such as risk taking and independent thinking are considered desirable will differ betwee...

The economic importance of franchising in service provision, job creation and self employment opportunities is widely reported. However the factors influencing franchise unit success has received little academic attention. This represents an important gap in the literature. Previous research has tended to focus upon system-level operations and recently upon the reasons for franchisor discontinu...

In this paper we show that fixed-term contracts, which are commonly used to franchise highways, do not allocate demand risk optimally. We characterize the optimal risk-sharing contract and show that it can be implemented with a fairly straightforward mechanism—a least-present-value-of-revenue auction. Instead of bidding on tolls (or franchise lengths), as in the case of fixed-term franchises, i...

Background A short-term protocol for evaluation of National Football League (NFL) athletes incurring concussion has yet to be fully defined and framed in the context of the short-term potential team and career longevity, financial risk, and performance. Purpose To compare the short-term career outcomes for NFL players with concussions by analyzing the effect of concussions on (1) franchise re...

This article analyzes the investment policy in franchise contracts. I argue that franchisors strategically choose the amount they ask franchisees to invest in the opening of a new franchise unit. I hypothesize that a franchisor asks for higher investment requirements when the franchisees’incentives to free-ride on her brand-name are strong. I …nd evidence consistent with this hypothesis. Using ...

The purpose of this paper is to examine franchise relationships by using an interaction approach which involves several exchanges or actor bonds between a franchisor and franchisee. The study is based on a web survey directed towards franchisees in Sweden. A total of 191 survey responses were obtained from a wide range of industries, representing a 16.2% response rate. A Pearson Correlation tes...

BACKGROUND This study examines the influence of clinical social franchise program on modern contraceptive use. METHODS This was a cross-sectional survey of contraceptive use among 2390 currently married women across 25 townships in Myanmar in 2014. Social franchise program measures were from programmatic records. RESULTS Multivariable models show that women who lived in communities with at ...

Franchising has become one of the most popular business formats in America today. While franchise formats offer a number of benefits, conflict often arises between the franchise and franchisees. One of the more common sources of conflict in the relationship centers on the fees paid by franchisees for advertising and for the effectiveness of advertising conducted by the franchise on behalf of fr...